Israeli Drug Industry And Market Forecasts

Israeli pharmaceutical industry sales in 1997 are expected to grow about8% to $770 million, says Moshe Manor, chairman of the Pharmaceutical Industry Branch of the Manufacturers' Association, and vice president of Teva.

He forecasts growth of about 5% to $400 million in sales to the local market, due to the government deficit in the health care sector and pressure on producer prices. High production costs will strengthen the trend to transfer of production overseas, he says, but further successes by Israeli companies in developing and producing unique products will drive exports, which he expects to grow 10% to $370 million.

Israeli drug sector sales grew 4.3% to $710 million in 1996, with local sales up 2% to $380 million and exports up 7% at $330 million. Human drug exports were $188 million, while pharmaceutical chemicals totaled $90 million, medical devices were $11 million and diagnostics reached $11 million. Human-use drugs are expected to account for about two-thirds of production this year, at around $540 million for both domestic and export markets.