Business Monitor International


Israel Pharmaceuticals & Healthcare Report

Published 12 March 2014

  • 141 pages
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  • Includes 3 free updated quarterly reports
 
$1,295.00
Israel Pharmaceuticals & Healthcare Report

BMI View: Israel's pharmaceutical industry is well developed and export-driven. It is also a very attractive prospect for multinationals looking to launch innovative medicines due to a greater need for specialty treatments, thereby capitalising on the country's strong academic research infrastructure. Favourable factors include high per capita spending on medicines, a market size approaching US$2bn, a high proportion of pensioners and a largely urbanised population. However, we caution that poor patent respect and a lack of business transparency remain key threats to company revenues. Additionally, we hold a relatively less optimistic outlook for growth in the market, based on weaker private consumption over the medium term.

Headline Expenditure Projections

  • Pharmaceuticals: ILS7.31bn (US$2.02bn) in 2013 to ILS7.48bn (US$2.11bn) in 2014; +2.4% in local currency terms and 4.4% in US dollar terms. Forecast remains broadly in line with Q114.

  • Healthcare: ILS73.59bn (US$20.39bn) in 2013 to ILS78.32bn (US$22.12bn) in 2014; +6.4% in local currency terms and 8.5% in US dollar terms. Forecast lower than in Q114 due to impact of austerity measures.

Ri sk/Reward Rating

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 Pharmaceutical Risk/Reward Ratings (RRRs) matrix, the country scores 55.8 out of 100 in Q214, making it the fifth most attractive market for pharmaceutical investment in the Middle East and Africa (MEA). Israel dropped one spot in our rankings, with its overall score falling from 57 out of 100 in Q114.

Key Trends And Developments

In February 2014, Israeli drugmaker Teva Pharmaceutical Industries concluded its tender offer for all outstanding shares in US-based...

Table of Contents

BMI Industry View
7
SWOT Analysis
9
SWOT
9
Political
11
Economic
12
Business Environment
13
Industry Forecast
14
Pharmaceutical Market Forecast
14
Table: Israel Pharmaceutical Sales, Historical Data And Forecasts
15
Healthcare Market Forecast
16
Table: Israel Healthcare Expenditure Trends, Historical Data And Forecasts
17
Table: Israel Government Healthcare Expenditure Trends, Historical Data And Forecasts
17
Table: Israel Private Healthcare Expenditure Trends, Historical Data And Forecasts
18
Prescription Drug Market Forecast
19
Table: Israel Prescription Drug Market Indicators, Historical Data And Forecasts
20
Patented Drug Market Forecast
21
Table: Israel Patented Drug Market Indicators, Historical Data And Forecasts
22
Generic Drug Market Forecast
23
Table: Israel Generic Drugs Market Indicators, Historical Data And Forecasts
24
OTC Medicine Market Forecast
25
Table: Israel Over-The-Counter (OTC) Medicine Market Indicators, Historical Data And Forecasts
26
Pharmaceutical Trade Forecast
27
Table: Israel Pharmaceutical Trade Data And Forecasts (US$mn)
28
Table: Israel Pharmaceutical Trade Data And Forecasts (ILSmn)
28
Other Healthcare Data
29
Key Risks To BMI's Forecast Scenario
30
Macroeconomic Forecasts
31
Economic Analysis
31
Table: Israel - GDP By Expenditure
37
Industry Risk Reward Ratings
39
Middle East And Africa Risk/Reward Ratings
39
Israel Risk/Reward Ratings
47
Reward
47
Risk
48
Market Overview
49
Market Overview
49
Industry Trends And Developments
50
Epidemiology
50
Communicable Diseases
51
Healthcare Sector
51
Healthcare Insurance
52
Healthcare Coverage Developments
54
Healthcare Financing
55
Healthcare Infrastructure
56
Research And Development Sector
56
Table: Israel's R&D Legislation - Conditions For OCS Funding
58
Clinical Trials
59
Clinical Trial Developments
60
Biotechnology
65
Regulatory Development
68
Regulatory Developments
68
Intellectual Property
69
IP Environment Shortcomings
70
Pricing System
72
Table: Price Build-Up In The Israeli Pharmaceutical Market
73
Reimbursement System
73
Reimbursement Developments
75
Competitive Landscape
76
Pharmaceutical Industry
76
Domestic Pharmaceutical Industry
76
Foreign Pharmaceutical Industry
77
Pharmaceutical Company Developments
77
Pharmaceutical Distribution Sector
85
Pharmaceutical Retail Sector
85
Company Profile
86
Teva Pharmaceutical Industries
86
Taro Pharmaceutical Industries
101
Perrigo (Adis Industries)
105
Dexcel Pharma
109
Neopharm Group
112
Trima
115
Rekah Pharmaceutical Industry
117
Pfizer
119
GlaxoSmithKline
122
Novartis
124
Sanofi
126
Merck & Co
128
Demographic Forecast
130
Demographic Outlook
130
Table: Israel's Population By Age Group, 1990-2020 ('000)
131
Table: Israel's Population By Age Group, 1990-2020 (% of total)
132
Table: Israel's Key Population Ratios, 1990-2020
133
Table: Israel's Rural/Urban Population Split, 1990-2020
133
Glossary
134
Methodology
136
Pharmaceutical Expenditure Forecast Model
136
Healthcare Expenditure Forecast Model
136
Notes On Methodology
137
Risk/Reward Ratings Methodology
138
Ratings Overview
139
Table: Pharmaceutical Risk/Reward Ratings Indicators
139
Indicator Weightings
140

The Israel Pharmaceuticals & Healthcare Report features Business Monitor International (BMI)'s forecasts for drugs and healthcare expenditure and imports and exports, focusing on the growth outlook for the prescription, OTC, patented drugs and generics market segments.

BMI's Israel Pharmaceuticals & Healthcare Report provides industry professionals, strategists, company executives, investors, analysts and sales/marketing heads with independent forecasts and competitive intelligence on the Israeli pharmaceutical and healthcare industry.

Key Benefits

  • Benchmark BMI's independent pharmaceutical and healthcare industry forecasts for Israel to test other views - a key input for successful budgeting and strategic business planning in the Israeli pharmaceutical and healthcare market.
  • Target business opportunities and risks in the Israeli pharmaceutical and healthcare sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Israel.
  • Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity) and Competitive Landscape Tables.

Coverage

BMI Industry View & Industry SWOT

An at-a-glance perspective on latest regulatory developments, key forecast indicators and major corporate developments, covering the prescription, OTC and generics markets. The SWOT outlines strategic factors which affect BMI's forecast analysis, and taken together with BMI's political, economic and business environment SWOTS, it gives a complete overview of market climate.

Market Summary

Snapshot of key market characteristics, including total size of pharmaceuticals and healthcare segments, growth drivers, leading therapeutic areas and the competitive landscape.

Regulatory Regime

Details of the industry regulatory framework and key legislation covering the licensing of new products/services, pricing and reimbursements, intellectual property, taxation and advertising, as well as an analysis of the overall regulatory burden.

Industry Developments

Focus on government healthcare reforms, epidemiological trends, company M&As, product launches, market entries, FDI activity, R&D, biotechnology, clinical trials and supply chain issues.

BMI Industry Forecasts

Forecasts to end-2018 for all key industry indicators (see list below) supported by explicit assumptions, plus analysis of key downside risks to the main forecast, including:

Healthcare: Total healthcare expenditure (US$bn), healthcare expenditure (% of GDP), healthcare expenditure per capita (US$), hospital beds (per `000 population), doctors (per `000 population), birth and mortality rate (per `000 population)

Pharmaceutical market: Drug expenditure (US$bn), drug expenditure (% of GDP), drug expenditure per capita (US$)

Patented drug market: Prescription drug sales (US$bn), prescription sales (% of total sales), sales broken down by 14 therapeutic areas (cardiovascular, anti-infectives etc.)

Generic drug market: Generic product sales (US$bn), generic sales (% of total sales)

OTC drug market: OTC sales (US$bn), OTC sales (% of total sales), sales broken down by product types (analgesics, skin treatments, vitamins and minerals etc.)

Medical Devices: Medical device sales (US$bn), medical device sales (% of total healthcare market)

Macroeconomic Forecasts: Nominal and real GDP, % real GDP growth, % private consumption growth, % industrial output growth, % consumer price index, % GDP price deflator, exports, imports, trade balance, current account balance, foreign direct investment, exchange rate against US$, government expenditure, external debt.

Competitive Landscape

The competitive landscape section provides comparative company analyses and rankings by US$ sales and % share of total sales - for the total pharmaceutical sector, as well as the OTC, generics, and distribution sub-sectors.

Company Profiles

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI's industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate Company SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

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Testimonials

'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc