ISRAEL 
HIGH-TECH & INVESTMENT REPORT

from the March 2003 issue


The Blockbuster Drug

Somewhat more than 20 years ago this countrys fledgling pharmaceutical and biotechnology industries were small but its early participants harboured large dreams. In textbook fashion the biotech pioneers InterPharm and BioTech General followed different patterns.

InterPharm licensed Weizmann Institute of Technology know-how, set up shop in the Rishon LZion Science Based Industries Park, adjoining the Weizmann Institute, created its own technology and in due course developed and manufactured beta interferon based drugs. It was and is a major success with manufacturing in Israel and in Europe under the aegis of its owner Ares Serono. BioTech General planned to pursue a multi-product development program. Founded in 1980 its first product reached the market some 15 years later and first profits were recorded few years later.

Israels pharmaceutical industry until the 1980s recently was a small conglomerate named Teva Pharmaceuticals. It consisted of a number of small drug companies, that were established and operated mostly by refugees from Europe. Eli Hurvitz,a former kibbutznik (farmer) assumed its leadership and in the early 1980s set a course for Teva to become a generic drug company, Teva today, is the third largest generic company in the world.

Moreover, Hurvitz wanted Teva to make a "blockbuster" drug. When the opportunity presented itself Hurvitz gambled and set and licensed Weitzmann Institutes fundamental scientific know. He gambled heavily on acquiring the know-how, build a $30 million plant, well ahead of being sure that the pharmaceutical trade-named Copaxone, could be produced or would reduce the relapse rate in patients with relapsing-remitting multiple sclerosis and also encourage the release of a factor that helps protect the brain from axonal loss.

Tevas Copaxone has become Israels first home grown "blockbuster". In 2002 alone it has sold Copaxone in the order of several hundreds of millions of dollars. Israel Makov, who was InterPharms first general manager in the early 1980s in his first year as Tevas President and CEO) led the company to new record achievements.

Also the below is to be in a box and part of the above or following the above

Teva is on Target for Achieving its Corporate Goals in 2003
With 2002 sales in excess of $2.5 billion with a net income of $410, up 43% over 2001 Management will seek to improve on the 14 new generic launches in 2002, Teva has 61 ANDAs in the pipeline with total annual brand sales of $42 billion, Enter new markets for Copaxone and increase its sales, Continue to raise its gross profit margin which reached 44% in Q4 2002, Continue to increase the size of its dividend payments, Increase shareholder value.

Tevas shares are traded on Nasdaq under the symbol TEVA and are also listed on Israels Tel--Aviv Stock Exchange



Reprinted from the Israel High-Tech & Investment Report March 2003

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