UPDATE 1-P&G sells Japan osteoporosis drug rights to Ajinomoto

*Deal includes rights to develop, make and sell drug in Japan

*Osteoporosis drug sold under brand names Actonel and Benet

*Move comes as P&G looks to sell prescription drug ops-source (Recasts, adds background)

TOKYO, July 31 - Procter & Gamble has agreed to sell the Japan rights to an osteoporosis drug to Ajinomoto Co Inc for $210 million as the U.S. firm restructures its health business.

The deal includes the rights to research, develop, manufacture and sell risedronate, which is marketed under the brand name Actonel, Ajinomoto said in a statement.

A source familiar with the situation said last week P&G is in talks with several private equity firms, including Cerberus Capital Management LP, as well as specialty drugmaker Warner Chilcott Ltd to sell its prescription drug business.

In December, P&G said it would end new investments in pharmaceuticals, consider divesting its healthcare brands and focus on its health business on over-the-counter products such as Pepto Bismol and Prilosec.

Ajinomoto, a seasoning maker which has expanded into pharmaceuticals, has until now made Actonel under license with distribution handled by Eisai Co Ltd. Japan's biggest drugmaker Takeda Pharmaceutical, also manufactures and distributes the drug under the name Benet.

Combined sales of Actonel and Benet in Japan were about 30 billion yen ($315 million) in the last financial year, Ajinomoto said.

Ajinomoto has designated treatments for metabolic diseases such as osteoporosis as one of its focus business areas.