Teva is keeping the Israeli biotech industry alive -- while Big Pharma by and large ignores its technological riches. But without some competition for financing and development support, the industry is hardly likely to flourish. The disastrous case of Proneuron and its IP on Copaxone, Teva's biggest drug, highlights the problems for Israeli start-ups when one company dominates the partnering scene.

Teva has built a successful generics business by being nimble, aggressive and opportunistic, and is betting heavily that by dominating global markets it can prosper even after the end of the current spate of patent expirations. The success of its innovative drug Copaxone has given it a hedge against the volatility of generics and also changed the company in many ways. While Teva has to balance two very different businesses with limited synergies, it also must come up with a viable successor to Copaxone in order to secure its foothold in proprietary pharmaceuticals while continuing its investment in generics.

Proneuron will develop new cell therapies and treatments for neurological disorders such as multiple sclerosis, Parkinson's diseases and Alzheimer's disease, ophthalmological disorders including anterior ischemic optic neuropathy and glaucoma, and immune disorders.