The Israeli pharmaceuticals industry is demonstrating stability, and even growth, despite the plight of other local industries. In contrast to statistics showing exports falling in many fields, a 23% rise in dollar terms in pharmaceuticals exports in the first quarter stands out. Drug exports totaled $1.1 billion in the quarter, the Manufacturers Association reports. Israeli drugs are now exported to over 100 countries.
Exports of drugs to the US grew by 43% in the quarter to $857 million, but exports to the EU fell 10%, to $170.9 million.
The Manufacturers Association explains the rise in total pharmaceuticals exports by the global economic crisis, which is forcing the pace of the transfer to generic drugs, which all over the world are cheaper than patent-protected innovative drugs.
In Israel, for example, generic drugs are 80% cheaper than innovative drugs.
Israeli companies, led by Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA), specialize in generic drugs.
More than 7,000 people in Israel are directly employed by pharmaceuticals companies. The total number employed directly and indirectly by the industry is about 20,000. There have been no layoffs by the industry in the crisis period.
Published by Globes [online], Israel business news - www.globes.co.il - on June 24, 2009
© Copyright of Globes Publisher Itonut (1983) Ltd. 2009
Published by Globes [online], Israel business news - www.globes.co.il - on June 24, 2009
© Copyright of Globes Publisher Itonut (1983) Ltd. 2009