The Israeli cosmetics industry is facing scrutiny in Israel following an Israeli news story about a company that is said to be behind secret trade secrets.
In a report published Sunday by the Israel Business Times, which was based on a confidential Israeli document, the report said the cosmetics company was named as a “major” competitor in Israel’s cosmetics market.
The cosmetics company, which makes cosmetics that are widely used for cosmetic surgery, was identified in the document as an “Israeli competitor.”
The report did not identify the Israeli company by name, and the company did not immediately respond to a request for comment from POLITICO.
The report cited unnamed sources as saying that the Israeli cosmetics firm is in a “race” with Israeli cosmetics giant Derma, which produces cosmetics for Israeli cosmetic surgery patients.
Derma sells products in Israel that include skin care products, hair care products and cosmetic surgery products.
In response to the report, Derma released a statement to POLITICO:The Israeli cosmetics business is an industry that has been the lifeblood of the Jewish state and its citizens for generations, with over a billion Israeli customers every year.
In our industry, the ability to compete with Israeli products is a privilege, not a right.
Dermalogical products are formulated to be used safely by Israelis and the Israeli consumer, not foreign companies, and we believe that this is a vital competitive advantage.
We stand by our products and continue to develop new products to enhance the safety and comfort of Israeli consumers.
The Derma cosmetics company also denied that its products contained any foreign products.
“Derma does not manufacture or sell cosmetics in Israel and its products do not contain any foreign ingredients, according to the company’s statement.
The Israeli business is being watched closely as Israel’s government and the pharmaceutical industry are grappling with an influx of prescription drug imports.
In January, a federal judge in Jerusalem ruled that Derma was violating the Sherman Antitrust Act by allowing imported drugs to be sold in Israeli pharmacies without prescription.
Israel has seen an influx in prescription drugs in recent years and has also seen an uptick in foreign-based imports, with the United States and other countries accounting for nearly 80 percent of all prescriptions.
Derma did not respond to POLITICO’s request for a comment.
A Derma spokeswoman told the newspaper that the company “has been cooperating with the Israeli authorities in investigating the allegations in the Derma report.”
The report said Derma had filed a complaint with the Justice Ministry, and it has requested the Israeli Securities Authority (ASA) investigate the company.
Dermarma is based in Jerusalem and employs approximately 10,000 people.