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ISRAEL MAINTAINS PHARMACEUTICAL TRADE SURPLUS

August 12, 2005

Israel exported drugs worth US$890mn in H105, up from US$566mn for the same period last year. Meanwhile, the country imported US$417mn of pharmaceuticals in the first six months of this year compared to US$354mn in H104, according to reports from Israel's Central Statistics Bureau.

The results reflect Israel's generic and export-driven drug market, while also stressing local reliance on foreign branded imports. Import demand has been aided by rising government expenditure on the country's National Health Insurance system.

Future growth in this area will be determined by whether the Israeli government can afford rising drug costs, especially in the relatively unlikely event of meaningful patent reform, which would increase the country's dependency on foreign imports.