Israeli Drug Groups Dispute Country's R&D Spend

Israeli pharmaceuticals groups have issued conflicting estimates on the country's R&D spending. Further, clear divisions are emerging on the issue between representatives of generic drugmakers and groups representing local subsidiaries of multinational drugmakers.

The Manufacturers' Association of Israel asserts that drug R&D spending in the country increased by 42 percent over the past two years to US$246mn, a 440 percent rise compared to the US$56mn recorded in 1994. The group claims that local drugmakers Teva, Agis, Taro and Dexxon Ltd. account for much of the increased investment, as many Israeli drug companies carry out clinical trials in their home market.

Meanwhile, ethical drugmakers' group Pharma Israel has claimed that investment in clinical research is declining, due to apparently inadequate intellectual property (IP) protections in Israel. While differences in criteria for the figures may account for some of the discrepancy, it is clear that the current backdrop of Israel's ongoing discussions with the US on IP reform may be prompting the exchange of views on the subject.

Observers note that an increase in R&D spending indicates that lax local patent protections, of which many generic drugmakers have been able to take advantage, would cast doubt on ethical drugmakers' claims that strict patent regulations are essential for sector development.