Daiichi Sankyo Co <4568.T>, Japan's No.3 drugmaker, will tie up with Britain's pharmaceutical giant GlaxoSmithKline plc to bring new products to the Japanese market, the Nikkei reported.

Daiichi and GSK's local unit, which will form a 50-50 joint venture in Japan, will initially sell key products of both firms, such as GSK's cervical cancer vaccine and Daiichi's influenza vaccine, the Japanese daily reported.

The companies' plan calls for the joint development and quick launch of products not available in Japan, such as a shingles vaccine, as well as combination vaccines against multiple illnesses, the paper said.

Japan had an estimated 140 billion yen ($1.73 billion) vaccine market in 2010, Nikkei said.

A tie-up with GSK, whose vaccine sales in Japan totalled about 60 billion yen last year, will help Daiichi expand in the field positioned as a key business, the daily reported.

($1 = 80.9400 Japanese yen)

(Reporting by Sagarika Jaisinghani in Bangalore; Editing by Supriya Kurane)