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January-September drug exports up 50 percent - Pharmaceutical exports to the US rose 72% to $1.84 billion
Israel's pharmaceutical exports rose 50 percent in January-September 2006 to $2.27 billion. Pharmaceutical exports to the US rose 72 percent to $1.84 billion.

The US is the main market where Israeli generic drug companies, headed by Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA), compete against US ethical drug companies. Manufacturers Association of Israel Chemical & Pharmaceutical society chairman and Teva VP Chaim Hurvitz said pharmaceutical exports to the EU fell 3 percent to $300 million.

Hurvitz attributed rising demand for Israeli pharmaceuticals to longer life spans, the maturing of investment in R&D, high standards of production, and compliance with European and US specifications. Another reason, he said, was "Israel's advanced regulations, which allow Israeli companies to successfully compete in foreign markets."

Israeli legislation allows generic pharmaceutical companies, headed by Teva, to produce generic drugs before the patents on the ethical drugs expire, although the generic equivalents cannot be marketed until the patents expire. Israel law allows the marketing of generic drugs to begin at midnight on the date when a patent expires. As a result, Teva has become the largest generic pharmaceutical company in the US. This gives it a significant edge over the competition.

Last year, US responded to Israeli legislation by including Israel in its priority watch list of countries that systematically violate intellectual property rights.
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