Teva Says Israeli Patent Law Hinders Generics Progress

In light of the Tel Aviv, Israel, District Court judge's ruling against Teva regarding the Israeli patent on fluoxetine, the active ingredient in Lilly's antidepressant Prozac, Teva's management is considering the transfer of a large part of its generic development to the USA. This is because the current patent laws in Israel prevent progress in R&D on generic drugs. Without the desired change in the existing patent laws, Teva claims it may fire 250 scientists working on generic drug development in Israel and transfer the activity to the USA.

Teva is disappointed that the responsible government officers have not made a proposed correction to the law, which will allow Israeli companies working in the generics field to prepare for manufacture of generic products during the patent life, so that marketing can take place immediately on patent expiry.

The disparity between the patent situation in the USA, which allows for pre-expiry working of the patent, and that in Israel gives US generics companies a substantial advantage. The Ministry of Health recently stated that it opposes such changes to the patent laws which, in addition to an extension of patent life as a trade-off, would hinder attempts to find ways of reducing drug costs to the sick funds and to the public.