For the first time, Minister of Industry, Trade and Labor Eli Yishai today responded in a sharply worded statement, to reports that he was seeking to change the Intellectual Property Law to give better terms for multinational pharmaceutical companies at the expense of Israeli generic drug makers.
In a press release, Yishai said, "I have not yet made up my mind. The process has only just begun, and I reject all attempts by Teva to influence the decision through the media."
Israel's intellectual property law is a major bone in the throat between Israel and the US. On one side are Israel's generic drug makers, lead by Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA). Multinational International pharmaceutical companies are on the other. The bone of contention is the expiry of drug patents and the development, production, and marketing of generic equivalents in Israel and their export to other countries. A second issue is how much the Ministry of Health can assist Israeli companies with information about drugs made by multinational pharmaceutical companies.
Yishai referred to "A flood of articles in which Teva executives were interviewed." The reference is apparently to a report in "Globes" from November 18. Yishai said, "People at Teva apparently know my decision. Naturally, threats about a war between Eli Yishai and Teva make bigger headlines than the establishment of an inter-ministerial team that will review the issue professionally."
Last month, Yishai met officials of the US Trade Representative (USTR) and with the representatives of several pharmaceutical companies in Israel. Afterwards, a number of delegations of multinational pharmaceutical companies visited Israel. Merck KGaA (XETRA:MRK) has also signed an memorandum of understanding (MOU) to invest in Israel start-ups.
Sources close to Yishai told "Globes" that changing the Intellectual Property Law might encourage more multinational pharmaceutical companies to invest in Israel. Yishai said today that he promised nothing to the foreign companies at the meeting.
However, sources close to him claim that he promised "to try" to help with in the matter of the law. They said that after the meeting, Yishai ordered the establishment of the inter-ministerial team to review the law. Representatives from the Ministries of Finance, Health, Justice, and Industry will participate. Meanwhile, both Teva and the Ministry of Health allege that the purpose of the committee is to change the law.
Published by Globes [online], Israel business news - www.globes-online.com - on November 25, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007