Israel Pharmaceuticals & Healthcare Report

Published 08 June 2015

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

BMI View: Drug price cuts and the addition of new pharmaceuticals to the national drug formulary demonstrate the government's commitment to expanding access to healthcare. Healthcare spending will remain elevated despite the fiscal deficit given the sector's importance in social stability.

Headline Expenditure Projections

  • Pharmaceuticals: ILS7.51bn (USD2.10bn) in 2014 to ILS7.82bn (USD2.01bn) in 2015; +4.2% in local currency terms and -4.4% in US dollar terms.

  • Healthcare: ILS80.67bn (USD22.55bn) in 2014 to ILS85.80bn (USD22.00bn) in 2015; +6.4% in local currency terms and -2.4% in US dollar terms.

Ri sk/Reward Index

The Israeli pharmaceutical sector boasts a number of key qualities. These include a largely urbanised population and a significant pensionable proportion. However, we highlight weak intellectual property laws and long drug approval times as severe hindrances to multinational drugmakers maximising their returns in the market. In BMI's Pharmaceutical Risk/Reward Index matrix for Q315, the country scores 54.3 out of 100 as it did in the previous quarter. This makes it the fifth most attractive market for pharmaceutical investment in the Middle East and Africa out of 31 countries analysed.

Key Trends And Developments

  • In March 2015, the prices of 835 medicines were reviewed by the Ministry of Health with 310 prices reduced. General Director of the Pharmacy Department, Dr Rania Shahin confirmed that the reductions are in line with Israel's reference pricing legislation.

  • In February 2015, it was confirmed by the Ministry of Health that public hospitals are both overcrowded and lacking resources.

  • In February 2015, Director General of the Ministry of Health, Professor Amon Afek announced the Ministry's plans to introduce life saving drugs, including those for cancer, into the national drug formulary so all citizens can access these medicines, not only those with supplementary health insurance.

BMI Economic View

We forecast real GDP growth of...

BMI Industry View
7
SWOT Analysis
9
SWOT
9
Political
11
Economic
12
Operational Risk
13
Industry Forecast
15
Pharmaceutical Market Forecast
15
Table: Pharmaceutical Sales, Historical Data And Forecasts (Israel 2011-2019)
16
Healthcare Market Forecast
17
Table: Healthcare Expenditure Trends, Historical Data And Forecasts (Israel 2011-2019)
19
Table: Government Healthcare Expenditure Trends, Historical Data And Forecasts (Israel 2011-2019)
19
Table: Private Healthcare Expenditure Trends, Historical Data And Forecasts (Israel 2011-2019)
19
Prescription Drug Market Forecast
20
Table: Prescription Drug Market Indicators, Historical Data And Forecasts (Israel 2011-2019)
22
Patented Drug Market Forecast
23
Table: Patented Drug Market Indicators, Historical Data And Forecasts (Israel 2011-2019)
25
Generic Drug Market Forecast
26
Table: Generic Drug Market Indicators, Historical Data And Forecasts (Israel 2011-2019)
27
OTC Medicine Market Forecast
28
Table: Over-The-Counter (OTC) Medicine Market Indicators, Historical Data And Forecasts (Israel 2011-2019)
29
Pharmaceutical Trade Forecast
30
Table: Pharmaceutical Trade Data And Forecasts (Israel 2013-2019)
32
Table: Pharmaceutical Trade Data And Forecasts local currency (Israel 2013-2019)
32
Key Risks To BMI's Forecast Scenario
33
Macroeconomic Forecasts
36
Economic Analysis
36
Expenditure Breakdown
37
Table: Economic Activity (Israel 2010-2019)
41
Industry Risk Reward Index
42
Middle East And Africa Risk/Reward Index
42
Israel Risk/Reward Index
50
Reward
50
Risk
51
Market Overview
52
Industry Trends And Developments
53
Epidemiology
53
Healthcare Sector
55
Healthcare Insurance
56
Healthcare Coverage Developments
58
Healthcare Financing
59
Healthcare Infrastructure
61
Table: Healthcare Resources (Israel 2009-2014)
61
Table: Healthcare Personnel (Israel 2009-2014)
62
Table: Healthcare Activity (Israel 2009-2014)
62
Research And Development Sector
62
Table: Israel's R&D Legislation - Conditions For OCS Funding
64
Clinical Trials
65
Biotechnology
66
Regulatory Development
69
Regulatory Developments
69
Intellectual Property
70
IP Environment Shortcomings
71
Pricing System
73
Table: Price Build-Up In The Israeli Pharmaceutical Market
74
Reimbursement System
74
Reimbursement Developments
76
Competitive Landscape
78
Pharmaceutical Industry
78
Domestic Pharmaceutical Industry
78
Foreign Pharmaceutical Industry
79
Pharmaceutical Company Developments
79
Pharmaceutical Distribution Sector
87
Pharmaceutical Retail Sector
87
Company Profile
88
Teva Pharmaceutical Industries
88
Taro Pharmaceutical Industries
98
Perrigo (Agis Industries)
102
Dexcel Pharma
106
Neopharm Group
109
Trima
112
Rekah Pharmaceutical Industry
114
Pfizer
116
GlaxoSmithKline
119
Novartis
121
Sanofi
123
Merck & Co
125
Demographic Forecast
127
Table: Population Headline Indicators (Israel 1990-2025)
128
Table: Key Population Ratios (Israel 1990-2025)
129
Table: Urban/Rural Population & Life Expectancy (Israel 1990-2025)
129
Table: Population By Age Group (Israel 1990-2025)
130
Table: Population By Age Group % (Israel 1990-2025)
131
Glossary
132
Methodology
134
Pharmaceutical Expenditure Forecast Model
134
Healthcare Expenditure Forecast Model
134
Notes On Methodology
135
Risk/Reward Index Methodology
136
Index Overview
137
Table: Pharmaceutical Risk/Reward Index Indicators
137
Indicator Weightings
138

The Israel Pharmaceuticals & Healthcare Report features BMI Research'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 Israel pharmaceutical and healthcare industry.

Key Benefits

  • Benchmark BMI's pharmaceutical and healthcare market 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 using our company profiles (including SWOTs, KPIs and latest activity) and competitive landscape tables.

Coverage

BMI Industry View

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

BMI Industry Forecast Scenario

Industry forecasts to end-2019 for all key indicators, supported by explicit assumptions, plus analysis of key downside risks to the main forecasts:

  • Healthcare: Total healthcare expenditure (USDbn), healthcare expenditure (% of GDP), healthcare expenditure per capita (USD), hospital beds, doctors, and birth & mortality rates (all per ‘000 population).
  • Pharmaceutical Market: Drug expenditure in USDbn, % of GDP and per capita (USD).
  • Patented Drug Market: Prescription drug sales (USDbn & % of total sales).
  • Generic Drug Market: Generic product sales (USDbn), generic sales (% of total sales).
  • OTC Drug Market: OTC sales (USDbn & % of total sales).
  • 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 USD, government expenditure and external debt.

BMI’s Pharmaceuticals and Healthcare Risk Reward Index

BMI’s Risk Reward Index provides investors (both national and multinational) looking for opportunities in the region with a clear country-comparative assessment of the market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide indices of highest to lowest appeal to investors, with each position explained.

Market Summary

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

Industry Developments

A focus on government healthcare reforms, epidemiological trends, mergers and acquisitions, product launches, market entries, FDI activity, R&D, biotechnology, clinical trials and supply chain issues.

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 analysis of the overall regulatory burden.

Competitive Landscape

The competitive landscape section provides comparative company analyses and index by USD 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.

*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.

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