As UK considers scope of new boycott, Israel’s contributions to NHS loom large

After the UK government announced its intention to impose widespread sanctions against Israeli settlements — the scope of which is not yet known — critics are pointing to the damage a boycott could do to British citizens if it disrupts access to Israeli products and innovation.

“There could be a dramatic impact on healthcare provision because of the dominance of Israeli drug firms,” according to The Telegraph’s deputy political editor.

A key concern is the fact that Israeli pharmaceutical companies, primarily Teva, supply 1 in 7 drugs provided by the National Health Service, according to the British Embassy. As of 2017, 100 million prescription items for medicines came from Israeli companies.

According to Teva United Kingdom, the company’s generic medicines save the NHS £2.4 billion annually.

Because developing an originator medicine often takes over a decade of research and trials, the manufacturer is given exclusive rights to the medicine it developed for a period, during which prices are much higher in order to recoup upfront costs. After that period, generic manufacturers can develop the same medicine.

“Because the development costs are lower, a manufacturer’s selling price to the NHS is significantly reduced,” according to Medicines UK.

Though Teva is not based in the West Bank, Israel could move to restrict British access to Israeli innovation, or London could implement wide-ranging measures that end up affecting a range of Israeli companies with even tenuous connections to companies in the settlements.

In addition, more than 300 Israeli companies operate in the UK.