“Israel should continue with its legislation on information exclusivity in the current format. The US position is impudent, and is being run by the Pharmaceutical Research and Manufacturers of America (PhRMA), particularly by Pfizer (NYSE: PFE), which sees Teva as its great enemy. Teva comes out with a generic product for every product that Pfizer makes, and is drubbing Pfizer on its own turf,” Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) VP Israeli pharmaceutical sales Chaim Hurvitz told “Globes”. His comments followed the unexpected failure of negotiations in Washington between Israel and the US on the issue of exclusivity of drug information.
Hurvitz continued, “Over the next 5-7 years, over half of Pfizer’s sales are vulnerable to competition from generic drugs. It’s clear to them that Teva is the main player. We should continue our legislation, and not accept every comma and period that Pfizer wants.
”Pfizer is an arrogant company, which thinks that as the world’s number one company, it deserves everything. It has a $50 billion sales turnover, and a profit of almost $13 billion. It’s worth over $200 billion. That’s economic power.”
Hurvitz added, “Every government ministry believes we should continue with our legislation on both information and exclusivity and patent law.”
The US does not accept the revision of the Patents Law (1967) (amended 1998), which is part of the Economic Arrangements Law, and the Israeli proposal on information exclusivity. The members of PhRMA assert that these provisions will limit the extension of patents registered in Israel, while the proposed information exclusivity of less than five full years will reduce the number of clinical trials conducted in Israel. These trials are currently estimated at $150 million a year.
Hurvitz stated, “If we pass the law, the US will not downgrade Israel’s rating. If it does, it will signal something new in their policy, after we already accepted their position on 90% of the issues.”
Israeli sources close to the Israel-US negotiations attributed the failure of the talks to much tougher US positions than those presented by US Trade Representative Robert Zoellick during his visit to Israel six weeks ago. They added that the reason was to do with internal US politics. Zoellick did not submit his resignation after the US elections, as other US cabinet members did.
Before leaving, Minister of Industry, Trade, and Labor Ehud Olmert said negotiations should be expedited “because of concern that the US trade representative might be replaced.” Olmert believes that Zoellick’s concern about his status and job has led him to toughen his position on the issue, in competition with US assistant secretary of commerce for market access and compliance William Lash, in order to appear more patriotic and concerned for US interests, and less willing to compromise with Israel.
Other sources said that US professional staff had consistently pressed these demands, while Israelis, especially Olmert, chose to believe that the US would compromise on points on which it had no intention of giving ground.
Published by Globes [online] - www.globes.co.il - on December 2, 2004