UPDATE 1-INTERVIEW-Sawai eyes bigger Japan market share

* Aims to lift Japan market share to above 18.7 pct

* Sees full-fledged competition with global rivals in 5 yrs

* Has no plan to enter offshore markets (Adds details)

By Yumiko Nishitani

OSAKA, Japan, Nov 17 (Reuters) - Japan's No. 1 generic drug maker, Sawai Pharmaceutical (4555.T: Quote, Profile, Research), aims to lift its share of the growing domestic market despite competition from bigger foreign players and a headwind from government price plans, its president said on Tuesday.

Japan's generic drug industry could be facing big changes as Israel's Teva Pharmaceutical Industries (TEVA.TA: Quote, Profile, Research), the world's biggest maker of generics, plans to start sales here next year via a joint venture, targeting a market share of 10 percent by 2015.

In addition, Japan's new, reformist government plans to cut prices for brand-name drugs, which reduces the price advantage of generic drugs.

"Neither Teva nor Ranbaxy has a new generic drug to lead its way fully into the Japanese market yet. It would be five years before they stand in our way," Sawai President Mitsuo Sawai told Reuters in an interview, referring to Ranbaxy Laboratories (RANB.BO: Quote, Profile, Research). Japan's Daiichi Sankyo (4568.T: Quote, Profile, Research) bought a majority stake in Indian generics maker Ranbaxy last year, though the two have not laid out plans to start selling Ranbaxy's products in Japan.

Sawai said his company aims to lift its Japan market share above the 18.7 percent it has been targeting for the year to March 2012 in its midterm business plan from 14.7 percent seen this business year.