Merck an international developer, manufacturer and distributor of
pharmaceuticals. is starting drug development and commercialization
operations in Israel. The company avail itself of the chief scientist's
program for international cooperation between Israeli firms and
multinational companies.
Under the agreement, Merck Serono, the company's new division for
innovative small molecules and biopharmaceuticals, will cooperate with
Israeli startups in developing pharamceuticals, and will later be able to
buy the rights to the drugs or help market them around the world.
The Industry and Trade Ministry will finance half of the research and
development costs of these companies, through its Chief Scientist's Office.
Teva has had almost exclusive access to Israeli biotechnology and
pharmaceutical research, since international firms have kept away. Now, with
Merck and Pfizer on the way, Teva will lose its exclusivity and face real
competition here for the first time.
As for Serono, this is a real U-turn. Rebif is based on technology from the
Weizmann Institute, and was produced by Interpharm in Rehovot. But Serono
almost completely closed down Interpharm and moved production to Europe.
Ironically, it will now find itself back in Israel.