Israel’s pharmaceutical market value will increase from approximately $1.9 billion in 2013 to $2.34 billion by 2020, driven by medical technology advances, high research and development (R&D) expenditure and a robust economy, according to research and consulting firm GlobalData.
Furthermore, the company’s latest report states that this rise, which represents a modest Compound Annual Growth Rate (CAGR) of 2.8%, will occur in a country with high levels of generic production and pharmaceutical exports.
Israel is home to Teva Pharmaceuticals, which is one of the world’s largest generics manufacturers and exporters. The country’s entire pharmaceutical exports were worth approximately $7.1 billion in 2013, more than four times the value of its imports, which was just over $1.7 billion.
Joshua Owide, GlobalData’s Director of Healthcare Industry Dynamics, says: “Israel is one of the major healthcare markets in the Middle East.
“Pharmaceuticals represent the largest and most established sector of the Israeli life science industry, with a total of 76 companies, of which 22% are involved in drug discovery and 17% in drug delivery.”
The director adds that this commitment to scientific development is fortified by a highly skilled population, with Invest in Israel highlighting that the country is ranked second in the world for percentage of engineers and scientists in the workforce.
Owide continues: “Approximately 24% of Israel’s workers hold university degrees, placing it third among the industrialized countries, after the US and Netherlands.
“Israel’s pharmaceutical sector is supported by a network of recognized academic and research institutes, R&D facilities, and well-developed medical centers. Indeed, Israeli research expertise and clinical advances have led to the development of blockbuster drugs and promising treatments.”
Such products include Johnson and Johnson’s Doxil for ovarian cancer, which was originally developed at the Hadassah Medical Center, as well as Teva Pharmaceuticals and the Weizmann Institute’s Copaxone for multiple sclerosis, and Novartis’ Exelon for Alzheimer’s disease, originating from research conducted at the Hebrew University.
