Following the big success of ILSI-BioMed Week: some data on Israeli Life Science industry.
The Israeli Life Science Industry is young and growing. Of the existing 702 companies, 56% were founded during the last decade. A closer look reveals that a quarter (173 companies) of the Industry was established in the last five years. Figure 1 depicts the trend and growth experienced by the industry in the 2001-2010, period. 306 companies were established prior to 2001, with the oldest one, Teva Pharmaceutical, founded in 1901. From 2001 to 2005, the industry experienced annual growth equaling 12%. In total, the industry grew by an additional 223 companies in the 2001-2005 period. In the past five years, industry growth has remained stable with approximately 40-45 new companies established, annually. Please note (i) that data depicts the number of companies established in the stated year and are currently active, and (ii) the data of 2009/10 is incomplete.
The industry’s growth has decelerated over the past three years due to the global economic crisis. Our data suggests that approximately 200 companies have ceased their operation due to lack of financing. Furthermore, the largest sector of the Israeli Life Science industry has been negatively affected by the changes in regulatory environment in the USA. Finally, the fear of the unknown embedded in the Healthcare Reform in the US has negatively impacted both corporations and investors, therefore affecting the pace of investment and the number of companies established in the 2008-2010 timeframe, and funds available to follow-on investments.
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