Israeli Govt Accepts Plan For Parallel Imports

Israeli Health Minister Yehoshua Matza is reported to have acceptedproposals by a steering committee set up by the Director General of the Ministry of Health, Gaby Barabash, aimed at reducing drug prices by 10%-40%.

One of the most significant of these would abolish the ban on imports of a drug while the original holder still has the license. Mr Matza says parallel imports would create competition between importers and lead local manufacturers to reduce their prices, forecasting a price drop of at least 20%.

A decision on whether the ban will be lifted will be taken no later than October; Mr Matza says he wants parallel importing to start in the New Year. As a result, the General Sick Fund, whose annual drugs bill is about NIS1.4 billion ($397 million) or about 50% of the total market and 65% of prescription drug sales, has begun planning for this development. The GSF's new head, Itzhak Peterburg, says this will reduce the drugs bill by "tens of millions of shekels annually."