Promedico Buys Fellow Israeli Importer

One of Israel's leading importers of medicines and medical equipment, Promedico, has acquired Jacobsohn, another leading importer, for an undisclosed sum. It is understood that Promedico has plans to set up a manufacturing facility near the city of Haifa.

Promedico represents Zyma as well as a number of major US multinational drugmakers, whereas Jacobsohn has the Ciba-Geigy agency. Both companies have had substantial market shares for many years, but increasing generic competition, import substitution, a slow-down in product pipelines and uncertainty regarding the impact of National Health Insurance appear to be the main factors behind this consolidation of the importing sector. Imports account for about 45% of the total pharmaceutical market.