"The US interest is that Perrigo (Agis Industries) (Nasdaq:PRGO; TASE:PRGO), Taro Pharmaceutical Industries (Nasdaq: TARO) and Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) will be unable to export generic drugs to the US in a timely fashion. In this way, US drug companies will be able to keep prices higher for two and half years longer than at present," said Manufacturers Association of Israel Chemical & Pharmaceutical society chairman and Teva VP Chaim Hurvitz today, in response to Israel being reinstated in the Office of the US Trade Representative (USTR) priority watch list.
Hurvitz added, "The data exclusivity bill approved by the Knesset Finance Committee, even if the US doesn’t accept all its particulars, improves protection of intellectual property in Israel. The bill greatly tightens the protection of intellectual property.
"As a VP at Teva, I'm pleased that the rules of the game are clear. That benefits everyone. As an Israeli, I'm concerned that the bill is delaying the launch of generic drugs onto the market, which will raise the cost of the health services basket by hundred's of millions of shekels."
Hurvitz said it was obvious that the US decision to put Israel back on the priority watch list was not solely due to Israel's data exclusivity law, even though the US does not accept parts of the bill. Rather, "the decision largely rests on US concerns about the new patent law."
Hurvitz said, "The US is trying to raise tensions before the Knesset passes the new patent law. This is an advanced law, and I can't imagine it not being passed, despite objections. In addition, the threat has been lifted, since Israel is now on the priority watch list."
Hurvitz was surprised by the US decision, saying, "I didn’t think they'd do it."
Currently, Israeli patents are longer than in the US in some cases. As a result, Teva cannot manufacture some generic drugs in Israel and export them to the US and other countries when the original patents in the US expire, but only after the Israeli patent expires.
Published by Globes [online], Israel business news - www.globes.co.il - on May 1, 2005