International conglomerate Bristol-Meyers-Squibb (BMS) has decided to increase its investments in clinical research in Israel by $2 million a year. Research conducted by the company in Israel is in its main fields of activity: cancer, hypertension, heart disease and cholesterol.
The company is currently conducting thirty-three projects on these topics in various parts of the world, twenty-one of them with the participation of Israeli patients. In fact, according to the company’s figures, one of every ten patients participating in international clinical research is Israeli. "Globes" heard this from Dr. Mishel Manon, new general manager of the BMS subsidiary in Israel.
The subsidiary company acquired offices in Petah Tikva and will hire seventy employees, most of them for marketing and research. These activities were hitherto carried out by Pharma-Best, owned by Yehuda Golan. Pharma Best will from now on retain distribution activities only.
According to Manon, "the BMS management’s decision to increase its investment in clinical research in Israel is a strategic decision, arising from its view of Israel as an attractive target for investment in this field, due to Israel's reputation as a country having one of the highest medical and research standards".
Manon noted that the only two countries, apart from the United States, recognised by the US FDA (Food and Drugs Administration) for the purpose of conducting clinical medical research, are Israel and Sweden. This, he said, is one of the main reasons for the decision to set up the subsidiary in Israel.
Commenting on the relationship between the company and the health funds, BMS regional managers Mike Sealy said that BMS, like other international companies operating in Israel, was forced to lower the prices of the drugs it sells to the health funds, especially the GHF.
Sealy said that in the drug supply contract signed with the GHF, the company lowered its prices by a certain rate. This was done, he maintained, as part of an overall agreement, containing elements of purchase volume and growth in the company’s clinical trials.
According to the company’s figures, the BMS sales volume in Israel amounts to $30 million annually, 70% of that amount going to the health funds.
Published by Israel's Business Arena May 9, 1999