Business Monitor International


Israel Pharmaceuticals & Healthcare Report

Published 01 October 2014

  • 141 pages
  • Instant access to your report online and PDF format through your account library
  • Includes 3 free updated quarterly reports
 
$1,295.00
Israel Pharmaceuticals & Healthcare Report

BMI View:   Even though Israel's tense domestic and external situation threatens overall market stability, its pharmaceutical industry remains well positioned for marked over-the-counter and non-patented market growth. Favourable factors include high per capita spending on medicines, a market size approaching USD2bn, a high proportion of pensioners and a largely urbanised population. Moreover, Israel's pharmaceutical market is one of the more advanced in the region, 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. However, the use of the reference pricing mechanism will lead to further price reductions on medicines. Israel's basket of reference countries are continuing to focus on pharmaceutical prices as a way to contain escalating healthcare costs. We also caution that poor patent respect and a lack of business transparency remain key threats to company revenues.

Headline Expenditure Projections

  • Pharmaceuticals: ILS7.31bn (USD2.02bn) in 2013 to ILS7.53bn (USD2.18bn) in 2014; +3.13% in local currency terms and 7.9% in US dollar terms. Forecast remains broadly in line with Q314, with currency fluctuations driving forecast up in US dollar terms.

  • Healthcare: ILS74.01bn (USD20.50bn) in 2013 to ILS78.62bn (USD22.79bn) in 2014; +6.2% in local currency terms and 11.2% in US dollar terms. Forecast broadly in line with Q314, with currency fluctuations driving forecast up in US dollar terms.

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...

Table of Contents

BMI Industry View
7
SWOT Analysis
10
SWOT
10
Political
12
Economic
13
Business Environment
14
Industry Forecast
15
Pharmaceutical Market Forecast
15
Table: Pharmaceutical Sales, Historical Data And Forecasts (Israel 2010-2018)
16
Healthcare Market Forecast
17
Table: Healthcare Expenditure Trends, Historical Data And Forecasts (Israel 2010-2018)
18
Table: Government Healthcare Expenditure Trends, Historical Data And Forecasts (Israel 2010-2018)
18
Table: Private Healthcare Expenditure Trends, Historical Data And Forecasts (Israel 2010-2018)
19
Prescription Drug Market Forecast
20
Table: Prescription Drug Market Indicators, Historical Data And Forecasts (Israel 2010-2018)
23
Patented Drug Market Forecast
24
Table: Patented Drug Market Indicators, Historical Data And Forecasts (Israel 2010-2018)
25
Generic Drug Market Forecast
26
Table: Generic Drug Market Indicators, Historical Data And Forecasts (Israel 2010-2018)
27
OTC Medicine Market Forecast
28
Table: Over-The-Counter (OTC) Medicine Market Indicators, Historical Data And Forecasts (Israel 2010-2018)
29
Pharmaceutical Trade Forecast
30
Table: Pharmaceutical Trade Data And Forecasts (Israel 2012-2018)
31
Table: Pharmaceutical Trade Data And Forecasts local currency (Israel 2012-2018)
31
Other Healthcare Data
32
Key Risks To BMI's Forecast Scenario
33
Macroeconomic Forecasts
34
Table: Israel - Economic Activity
39
Industry Risk Reward Ratings
40
Middle East & Africa Risk/Reward Ratings
40
Israel Risk/Reward Ratings
48
Reward
48
Risk
49
Market Overview
50
Industry Trends And Developments
51
Epidemiology
51
Communicable Diseases
52
Healthcare Sector
52
Healthcare Insurance
53
Healthcare Coverage Developments
55
Healthcare Financing
56
Healthcare Infrastructure
57
Research And Development Sector
57
Table: Israel's R&D Legislation - Conditions For OCS Funding
59
Clinical Trials
60
Clinical Trial Developments
61
Biotechnology
67
Regulatory Development
70
Regulatory Developments
70
Intellectual Property
71
IP Environment Shortcomings
72
Pricing System
74
Table: Price Build-Up In The Israeli Pharmaceutical Market
75
Reimbursement System
75
Reimbursement Developments
77
Competitive Landscape
78
Pharmaceutical Industry
78
Domestic Pharmaceutical Industry
78
Foreign Pharmaceutical Industry
79
Pharmaceutical Company Developments
79
Pharmaceutical Distribution Sector
92
Pharmaceutical Retail Sector
93
Company Profile
94
Teva Pharmaceutical Industries
94
Taro Pharmaceutical Industries
110
Perrigo (Adis Industries)
114
Dexcel Pharma
118
Neopharm Group
121
Trima
124
Rekah Pharmaceutical Industry
126
Pfizer
128
GlaxoSmithKline
131
Novartis
133
Sanofi
135
Merck & Co
137
Demographic Forecast
139
Demographic Outlook
139
Table: Israel's Population By Age Group, 1990-2020 ('000)
140
Table: Israel's Population By Age Group, 1990-2020 (% of total)
141
Table: Israel's Key Population Ratios, 1990-2020
142
Table: Israel's Rural/Urban Population Split, 1990-2020
142
Glossary
143
Methodology
145
Pharmaceutical Expenditure Forecast Model
145
Healthcare Expenditure Forecast Model
145
Notes On Methodology
146
Risk/Reward Ratings Methodology
147
Ratings Overview
148
Table: Pharmaceutical Risk/Reward Ratings Indicators
148
Indicator Weightings
149

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