Israeli Patent Change "Will Bring It Close To US Law"

The proposed amendment to Israel's intellectual property law(Marketletters November 17 and 24) is likely to be approved due to strong support from the local drug industry, reports Reuters. A local industry source was quoted as saying that the change will have a significant effect on the world drugs business because Teva, which is strong in US and European markets, would gain an important edge over its competitors.

An Israeli lawyer representing Lilly in a generic drug suit against Teva said Israeli generic drugmakers would be able to begin selling their drugs the day their patent expires, and would be able to sell bulk drugs before their competitors.

Once a drugmaker begins producing with one firm's bulk drugs, it is hard to switch suppliers, so the change in the law will allow Israeli companies to lock in customers even after US competitors can begin making the same bulk drugs, noted Reuters. The Pharmaceutical Research and Manufacturers of America has told US officials that it is no secret that the amendment is intended to allow Israeli bulk producers manufacturing in Israel to supply overseas formulators in commercial quantities. It will flout Israel's treaty obligations protecting patents, says the PhRMA, and discourage drug multinationals from setting up R&D centers there.