2013-12-27 08:53:46 - Recently published research from Business Monitor International, "Israel Pharmaceuticals & Healthcare Report Q1 2014", is now available at Fast Market Research
Israel's pharmaceutical industry is well developed and export-driven. The primary focus is the manufacture of generic drugs by local drugmakers for export to the US and EU. However, in light of increasing global demand for generic drugs, fuelling competition in the sector, we believe Israeli firms will continue to branch out into innovative products, capitalising on the country's strong academic research infrastructure. We expect the presence of multinationals in the sector to remain largely through imports, based on the country's political isolation negatively affecting the business environment.
Full Report Details at
- www.fastmr.com/prod/754546_israel_pharmaceuticals_healthcare_rep ..
Headline Expenditure Projections
* Pharmaceuticals: ILS7.13bn (US$1.85bn) in 2012 to ILS7.31bn (US$2.03bn) in 2013; +2.6% in local currency terms and 9.9% in US dollar terms. Forecast revised downwards
due to macroeconomic modifications.
* Healthcare: ILS69.78bn (US$18.11bn) in 2012 to ILS74.80bn (US$20.78bn) in 2013; +7.2% in local currency terms and 14.8% in US dollar terms. Forecast broadly in line with Q413.
The Israeli pharmaceutical sector boasts a number of key qualities. These include a largely urbanised population and a significant pensioner proportion. However, we highlight weak intellectual property (IP) laws and long drug approval times as severe hindrances to multinational drugmakers maximising their returns in the market. In BMI's Q114 Pharmaceutical Risk/Reward Ratings (RRRs) matrix, the country scores 57 out of 100, making it the 4th most attractive market for pharmaceutical investment in the Middle East and Africa (MEA).
Key Trends And Developments
Eisai's Fycompa (perampanel), the first in a new class of treatment for uncontrolled partial onset seizures (POS), was approved in Israel. The new therapy is indicated as an adjunctive treatment for POS, with or without secondary generalised seizures, in people with epilepsy aged 12 years and older. In Israel, Fycompa will be launched and marketed by Megapharm, Eisai's local CNS partner.
Teva's President and CEO Dr Jeremy Levin resigned from the company. In the interim, Teva reported that Eyal Desheh, the company's Executive Vice President and CFO, will act to fill the gap left by Dr Levin. On the day of the CEO's resignation the share price drop by 8.1%, highlighting concern over the company's future performance within the investment community.
Teva announced it will reduce its global workforce by 5,000 employees (approximately 10%) as part of a cost-cutting plan. As a result, the company expects to make savings of US$2bn in terms of labour costs by 2017. Teva estimates US$1bn of the savings, or 50%, will be realised by the end of 2014 and 70% by the end of 2015. Teva expects to reinvest a portion of the initial savings in high-potential programmes. These investments will include expanding its generic drug business and pharmaceutical pipeline through R&D programmes.
AstraZeneca and Hadasit, the commercial arm and technology transfer company of Israel's Hadassah University Hospitals respectively, formed an alliance to identify, evaluate and jointly develop novel medicines across a broad range of diseases to address unmet patient needs, with a primary focus on cancer, respiratory diseases and diabetes.
BMI Economic View: We project real GDP growth in Israel of 3.5% and 3.2% in 2013 and 2014 respectively. The domestic economy will remain in a soft patch, with austerity measures hitting private consumption, while weak growth in export markets will hinder the country's external position. Risks to the outlook are lying firmly to the downside, as a result of the potential for an escalation of the civil war in neighbouring Syria.
BMI Political View: Israeli-Palestinian peace talks resumed on August 14 after three years of suspension, yet cracks in the facade have quickly emerged. We retain our view that despite ongoing efforts by US Secretary of State John Kerry, the current political configuration in Israel, combined with the increasing fragmentation of the Palestinian Authority, will hinder any progress in negotiations.
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Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets. BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports. View more research from Business Monitor International at www.fastmr.com/catalog/publishers.aspx?pubid=1010
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