BMI View: Our growth outlook for Israel's pharmaceutical sector is underpinned by the government package to systematically bolster the public health system through targeted investment in health resources and infrastructure . Concerted efforts to grow the interface between private and public medicine and an improving intellectual property picture will ensure commercial opportunities remain for pharmaceutical companies.
Headline Expenditure Projections
Pharmaceuticals: ILS7.82bn (USD2.01bn) in 2015 to ILS8.16bn (USD2.11bn) in 2016; +4.3% in local currency terms and +4.6% in US dollar terms. Forecast u pgraded from Q 1 1 6 .
Healthcare: ILS85.80bn (USD22.09bn) in 2015 to ILS91.29bn (USD23.59bn) in 2016; +6.4% in local currency terms and +6.8% in US dollar terms. Forecast upgraded from Q 116 .
|f = BMI forecast. Source: National Sources, BMI|
|Pharmaceutical sales, USDbn||2.099||2.014||2.107||2.238||2.429||2.528||2.625|
|Pharmaceutical sales, % of GDP||0.69||0.71||0.71||0.70||0.69||0.67||0.64|
|Pharmaceutical sales, % of health expenditure||9.3||9.1||8.9||8.8||8.6||8.4||8.2|
|Health spending, USDbn||22.547||22.088||23.587||25.570||28.344||30.191||32.172|
Ri sk/Reward Index
The Israeli pharmaceutical sector boasts a number of key qualities. These include a largely urbanised population, of which a significant proportion is pensionable. Although intellectual property laws are currently being made more robust, we highlight long drug approval times as a hindrance to multinational drugmakers maximising their returns in the market. In BMI's Pharmaceutical Risk/Reward Index for Q216, the country scores 55.7 out of 100. This makes it the third most attractive market for pharmaceutical investment in the Middle East and Africa, behind the United Arab Emirates (62.5) and Saudi Arabia (59.7), out of 31 countries analysed.
In November 2015, the government confirmed that the Ministry of Health will receive a budget injection of ILS4.6bn. Mental health reforms, hospital construction and suggestions to shorten waiting times are all key targets of the spending increase.
In February 2016, Merck announced an extension of its long-term partnership with the Weizmann Institute of Science. The German pharmaceutical giant pledged USD1.11mn for the facility's two research projects over the next three years.
In January 2016, the Health Ministry announced its intention to allow general practitioners to prescribe cannabis, in a plan to devolve prescription authority for the drug from the Ministry to the nation's 23,000 doctors.
BMI Economic View
Israel's external position will continue to improve throughout the next decade, as low public deficits and improvements in the country's current account balance, on the back of rising gas exports, increase the country's external assets. Overall, the Israeli economy will expand by 3.0% in 2016 and 3.5% in 2017, faster than most developed peers.
BMI Political View
Israel's isolation on the international stage will remain elevated over the coming quarters, as the government's policy towards Palestinian issues continues to stand at odds with the country's main allies' strategy. This will be reinforced by the limited potential for a policy shift in Israel, given the strong ideological divide fragmenting the ruling coalition on the Palestinian issue.
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.
- 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.
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.
A snapshot of key market characteristics, including total size of the pharmaceuticals and healthcare segments, growth drivers, leading therapeutic areas and the competitive landscape
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.
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.
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.
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.