Israel represents a highly centralized market for healthcare; only four HMOs insure 100% of the population in Israel, and are therefore responsible for 85% of pharmaceutical Rx market expenditures. While there are a number of private hospitals and clinics, most hospitals in the country are owned either by these HMOs or the government. This reality present both a significant advantage, as well as a challenge. On the one hand, this centralization means that there are fewer key people to approach and market to; maintaining ongoing, productive relationships with them makes each product’s introduction smoother. On the other hand, this small set of “targets” means there’s little room for error. A single mis-step with a single HMO can mean an immediate, substantial decrease in sales potential. Our expertise is in meticulously avoiding this scenario.

And then there are the economic factors: the Israeli pharmaceuticals industry itself is subject to (and limited by) HMOs and medical institutions’ budgets; the government reimbursement list; price control;  and changing trends in ethical considerations and generic medicines’ supply and demand. Carefully developing pricing models and sales strategies is critical to success.

Finally, the Israeli Ministry of Health places high regulatory entry barriers on pharmaceutical companies. The registration process in Israel is complex and subject to the Ministry’s stringent requirements, which often change and are particularly challenging to keep up with. Our attention to this area has proven worthwhile, partner after partner, product after product.