Israeli pharma market 'worth $2.3 billion by 2020'

GlobalData's latest report looks at the prospects for the pharmaceutical industry in Israel.

Israel's pharmaceutical industry is projected to grow at a compound annual growth rate (CAGR) of 3.9 per cent over the coming years, a new report suggests.

Figures from global business intelligence provider GlobalData indicate that the country's pharmaceutical market was worth $1.29 billion in 2005.

By 2020, this figure is expected to increase to $2.3 billion thanks to a combination of technological and medical advances, high spending on research and development, and a robust economy.

The report also indicates that the Israeli medical device market - which was worth around $1.2 billion in 2011 - will reach approximately $1.9 billion by 2020, with a CAGR of 4.6 per cent.

As well as the above-mentioned attributes, Israel also benefits from a highly skilled workforce thanks to its good education system, which has resulted in a high number of scientists and engineers.

This, combined with good levels of investment in research and development, has led to a large number of medical advances, while Israel boasts one of the largest manufacturers and exports of generics and active pharmaceutical ingredients, Teva Pharmaceuticals.

"However, strained political relationships with neighbouring Arab countries and terrorism remain threats to Israel's healthcare market and, in broader terms, its economy," the report warns.