FDAnews
www.fdanews.com/articles/73764-strong-otc-growth-seen-in-israel

STRONG OTC GROWTH SEEN IN ISRAEL

June 27, 2005

Favoured by currency factors and the drug market's maturing profile, Israel's OTC drug sales have reached ILS500mn (US$110.17mn). According to a survey by Business Data Israel, drug sales in 2004 were ILS4bn (US$882.65mn), meaning OTCs accounted for roughly 12.5% of the market.

The survey also indicates that Israel has some 1,320 pharmacies, 550 of which are privately held, with 120 chain drug retail outlets and the remainder managed by Israel's health funds. The report's authors also expect up to 1,000 new outlets to be added by year-end 2007.

Further, the study claims that many retailers are beginning to set aside special OTC areas for consumers, a sign of development in the sector. Many of the new shelves have come equipped with touch-screen IT equipment to better inform consumers.

Much of the recent solid growth in OTC drugs in Israel has been due to recent regulatory reforms that have attracted major international players to the market. New legislation has permitted the sale of roughly 100 non-prescription drugs to be sold through mass-market and convenience stores. The reform should prove a catalyst for strong OTC sector growth as the drugs become more accessible.