Israel is eighth in the number of patents granted in the life-sciences industry, which may be the most amazing statistic of all, given the amount of time and money companies must invest in getting a product or technology tested and patented.

This week, the Israeli biotech industry was having its annual conference, the Biomed Israel 2011 show, sponsored by the Life Sciences Industries Association in Israel (ILSI), a nonprofit organization founded to serve and promote the goals of the Israeli life-sciences industry in the international arena. The show, which is taking place in Tel Aviv and is celebrating its tenth anniversary, has become a can’t-miss affair for top executives of pharmaceutical and medical-technology giants around the world.

So how successful has the Israeli life sciences industry been? Check out the stats: There are currently about 700 active life-sciences companies in Israel; 56 percent of them (396) of them were founded in the last decade.

A quarter of them, 173, were founded only five years ago. Of the rest, 306 were founded before 2001, with the oldest, Teva Pharmaceuticals, founded in 1901 (amazing but true). Out of the 700, 401 (56%) are in the medicaldevices business.

From 2001 to 2005 the industry’s annual growth was 12%. Even though things have slowed a bit over the past three years, Biomed organizing committee chairperson Ruti Alon says growth has returned to the sector.

More than 100 of the companies established over the last decade are making money, she says, and “the most impressive fact is that 25 companies, about 8% of all companies that produce income, were founded only five years ago.”

Some testimonials as for ILSI- Biomed Israel 2011:

“Back to Paris I would like to thank you for the excellence of the organization and the quality of the Company we have met. We learned a lot and see several opportunities to partner with Israeli Biotech Companies”

- Philippe Goupit, Sanofi-Aventis, Business Development Corporate Licenses

“I would like to thank you very much for giving me the opportunity to talk about EU reimbursement during ILSI Biomed in Tel Aviv. I was impressed by the fantastic organization of the program and the conference itself.
It would be a very great pleasure for me to participate again next year”

- Dr. Hubertus Rosery MPH (CEO), AiM GmbH, Assessment in Medicine Research and Consulting

“Thanks for the nice introduction; I had a number of meetings and feel that I am slowly getting to know the needs and interests of the many wonderful technology companies born in Israel. Congratulations on a very successful conference!”

- Dan Mendelson, CEO, Avalere Health LLC

Really excellent. Well planned. Very nice atmosphere.
Key-note speakers were the best. Cocktail party was a delight.
Kenes did a great job. Kol Hakavod to ILSI & Ruti.

- David Blum

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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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Hong Kong and the US tied for first place in global competitiveness this year, taking over from Singapore, which fell to third place.

The Federation of Israeli Chambers of Commerce represents IMD in Israel. Chambers of Commerce president Uriel Lynn said, “The Israeli economy continues to demonstrate robustness and stability compared with the world’s leading economies. The survey puts Israel among the top 20 countries, economically speaking, despite the challenges facing Israel over the coming year, such as reducing the public sector and spending, cutting bureaucracy, and the burden on the business sector, investment in infrastructure in the periphery, including in education, and boosting exports.”

srael is ranked 54th out of the 59 countries in participation in the labor force, the same as in 2010. Israel’s ranking for cost of living fell to 49th place from 47th place, and its ranking for persons dependent on the government was the penultimate 58th place.
Israel’s ranking for technology infrastructure rose to 4th place in 2011 from 5th place in 2010; science infrastructure rose to 4th place from 6th place; but its ranking for basic infrastructure (roads, railways, energy sources, etc.) was unchanged in 47th place. Israel’s ranking on environmental legislation fell to 21st place this year from 19th place last year, and its ranking on education fell to 14th place from 13th place.

Published by Globes [online], Israel business news – www.globes-online.com – on May 18, 2011

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Statistical reports prepared by the Israeli Chief Scientist office towards the ILSI – Biomed Israel 2011 Week, which will open in Tel Aviv next week (May 23-25, 2011), show that the Chief Scientist helped support life science projects in Israel, with NIS 430 million in 2010. Avi Hasson, the Chief Scientist, will speak at the conference at the opening of the day devoted to young biomed companies.

10 more years!

Of the NIS 430 million of support funds, NIS 49 million were given to pharmaceutical development; NIS 173 million to biotechnology, and NIS 209 million to medical equipment. In all, the R&D Committee of the Chief Scientist Office considered 338 project applications from 193 companies, of which 265 projects were approved, representing a total R&D budget of NIS 701 million. This is 10.5% less than the State support given to life science R&D in 2009, the sector’s record year of the past decade. However, the bio technology sector benefited from increased grants with NIS 4 million more that in 2009.

The figures also reveal that State support of life science innovation of the past years has been ranging between 30% in 2007 to 28.1% in 2010, a significant increase from 14% in 2000 and 22% in 2003.

Commenting on the figures, Hasson said Israel’s outstanding excellence centers in the academy, combined with entrepreneurial spirit and technological life science capabilities results in Israel being positioned as a significant life science player on a global level. “Israel is unique in combining life science with additional areas, such as nanotechnology, intelligent materials and advanced electronics,” said the Chief Scientist.

Hasson pointed out the Chief Scientist office is committed to continued support for the life science sector, with life science companies benefiting from a preferred status regardless of the stage in their evolution. “With our support, more companies were able to reach advanced stages of clinical development in recent years,” he said.

The chief scientist noted in this context, the recently-announced win of OrbiMed Advisors of the tender to establish dedicated life science R&D funds in Israel. “When an international company mobilizes USD 160 million, which is more than twice than the minimum required to bid in the tender, this is the best evidence of the trust the global capital market places in the Israeli life science industry and its technological and commercial potential for economic growth.”

2011 marks the 10th anniversary of ILSI Biomed Israel 2011 Week. Over the past decade, it has grown into an international conference hosting the biggest (and hottest) names of the biotechnology, pharmaceutical and medical instrumentation industries. The conference organizers, the Israel Life Science Industry (ILSI), and Kenes Congress Group, expect more than 1,000 overseas guests to join thousands of local bio-pharma and medical instrumentation executives, scientists, researchers, entrepreneurs, opinion leaders, VC fund managers and private investors who confirmed their participation at the Conference.

About ILSI Biomed Israel 2011

The ILSI Biomed Israel 2011 is the central annual event of Israel’s life science industry. It consists of an international professional conference, targeted at the best experts and executives from bio-pharma and medical instrumentation companies, as well as scientists and researchers, entrepreneurs, opinion leaders, VC fund managers and private investors from Israel and abroad. The adjoining exhibition displays the most recent innovations of these areas. With the years, ILSI Biomed Israel 2011 has won international acclaim and is considered today as the second largest conference of the life science industry after the USA. It will be held from May 23rd to 25th at the David Intercontinental Hotel in Tel Aviv.

Visit the conference website at http://www2.kenes.com/biomed/pages/home.aspx

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Shlomo Yanai has been the President and Chief Executive Officer of Teva since March 2007.

Prior to joining Teva, Mr. Yanai was President and Chief Executive Officer of Makhteshim-Agan Industries Ltd. from 2003 until 2006. Previously, Mr. Yanai served in the Israel Defense Forces (the “IDF”) for 32 years, where he achieved the rank of Major General, the highest rank below Chief of Staff, and successively held two of the most senior positions: Commanding Officer of the Southern Command and Head of the Division of Strategic Planning.

Mr. Yanai was the head of the Israeli security delegation to the peace talks at Camp David, Shepherdstown and Wye River. Mr. Yanai was a board member of Bank Leumi Le-Israel Ltd. from 2004 until 2007. Mr. Yanai is a member of the Board of Governors of the Technion (Israel Institute of Technology) and of the International Advisory Board, M.B.A. Program of Ben-Gurion University of the Negev, as well as an honorary member of the Board of the Institute for Policy and Strategy of the Interdisciplinary Center (IDC) Herzliya.

Mr. Yanai received a B.A. in political science and economics from Tel Aviv University in 1983 and an M.P.A. in national resources management from George Washington University in 1990, and graduated the Advanced Management Program of the Harvard Business School in 2000.

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Biomedix owns 18% of IBI, which has technology for connecting tissue within the body without the need for surgery. IBI already has sales of its first product, a gynecological device for pelvic organ prolapse repair. The company granted Cook Urological Inc. rights to develop jointly a second product for bladder fixation, which is undergoing preclinical animal trials.

Allium says that the merger will create a new company that will have substantially more cash than Allium currently has. Biomedix did not disclose in its financial report for 2010 what were IBI’s revenue or cash, but the company is reportedly worth NIS 75 million.

IBI repeatedly considered an IPO on the TASE, and raised $12 million in a private placement last year from Filvest. The company said at the time that it planned to acquire synergetic minimally invasive surgical technologies.

Allium’s share price rose 3.8% today to NIS 0.69, giving a market cap of NIS 50 million. Biomedix’s share price rose 1% to NIS 0.59, giving a market cap of NIS 83 million.

Published by Globes [online], Israel business news – www.globes-online.com – on May 8, 2011

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Panel discussions in 2011 will include:

Social Advertising
eTail, eCommerce, eIsrael
Cool Content and Convergence
Mobile Connections
Creative Consumer Products
From Seeding Ideas to Selling Shares
Breakthrough Medical Technology

Who: The Israel Conference™ features leaders of significant businesses that are Israel-facing that were founded in Israel, have R&D operations in Israel, do business in Israel, or represent investors in Israeli companies. Speakers represent the spirit of the inventiveness of the Israel market.

Why: By attending, you will meet with top minds of the movers and shakers from publicly traded companies, privately-held middle market firms, and early stage ventures along with private equity and venture investors. You will meet first-hand with the innovators of leading technologies from Israel that are market-making and in demand with the most forward-thinking technology and products in the world. Attendees gain an insider’s understanding of the growth of dynamic Israel-facing companies.

When: The Israel Conference™ 2011 will take place on Thursday June 2, 2011 in Los Angeles.

For more information: http://www.theisraelconference.com/index.php

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Aran Research Development & Prototypes has published new details in its financials about the agreement it signed to sell the subsidiary (55 percent), from which it emerges that Boston Scientific paid $5.13 million in cash, and that the purchase price could reach $24.3 million if milestones are reached.

In November 2010, Aran reported that SI Therapies, which has developed a cardiology product, had been sold to a foreign company under a contract that would yield an immediate profit of $3.4 million. Aran will provide to Boston Scientific consultancy services in relation to the product, which could expand its revenue from the agreement. Aran did not disclose what the product was, but from previous reports from Boston Scientific it can be understood that it is a device for treating peripheral blocked arteries.

Aran Research Development & Prototypes has a market cap of NIS 37.7 million on the Tel Aviv Stock Exchange. The company engages in engineering development, mainly for other companies, and also invests in start-up ventures.

By Gali Weinreb and Shiri Habib-Valdhorn, Globes

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Appetite for Israeli initial public offerings of life-science companies is booming, writes the WSJ, but critics say the sector is immature and lacks the transparency for investors to make informed decisions.

Over the last few years the Tel Aviv Stock Exchange loosened up on its rules for tech companies looking to go public. At the same time, American biotech companies have been finding it extremely difficult to launch an IPO in the U.S. The result is that new life science companies from around the world are knocking on TASE doors as they hunt out fresh capital at a time venture funding has shriveled.

The first three months of 2011 have brought four life-sciences IPOs, and several more are planned for the first half of the year. The rate so far has been far ahead of that of the past three years, with only four IPOs in all of 2010, one in 2009 and none in 2008.

As the WSJ points out, Israel already has a reputation as the home for a large number of up-and-coming biotech companies.

“The market here in Tel Aviv is ripe,” says Dror Ben-Asher, CEO of RedHill, which raised a little under $15 million from its offering. “There is a lot of growing interest here in biotech.”

The last Biotech IPO boom on TASE, though milder and still local, took place on the first quarter of 2010 – From January till April 2010, five Israeli biotech companies have gone public and another 12 have registered to do so. Two initial public offerings of BioMed companies have taken place since the beginning of 2010. Apart from those, 7 more Secondary offerings were made. Together, all these have raised 181.3 million NIS from investors.

For the full WSJ story (subscribers only):

http://online.wsj.com/article/SB10001424052748703806304576232560144660964.html?mod=dist_smartbrief

See also: Biotech IPOs on the Mend (April 2010)

http://www.ilsi.org.il/industry_analysis_item.asp?ID=84

by Aviva Mishmari

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The leader of the delegation is Susan Windham-Bannister, CEO and president of the Massachusetts Life Sciences Center. Robert Koachlin, the president of the Massachusetts Council of Biotechnology, and Tom Sommer, president of MassMEDIC are also expected to attend. MLSC have recently received more than a billion dollars from a governor of the state – money that should be utilized for investments in the field.

Yair Shiran, the leader of the Economic Minister to North America is happy about the official visit: “We are working on all fronts to create positive relationships with various North American states, and make them interested in investing here. ILSI-Biomed week, which will be held for the tenth year, is an excellent anchor to bring large companies, and certainly they will like what they see here. ”

ILSI-Biomed Week will celebrate this year a decade of its existence, during which it became an international conference being attended annually by the biggest names in most branches of biotechnology, pharmaceutical and medical device industries. The organizers of the event, the Israeli Life Science Industry association – ILSI – and the “Kenes” company, estimated that among the thousands of expected attendees – CEOs and seniors in bio, pharma and medical devices industries, scientists and researchers, entrepreneurs, venture capital fund managers and private investors – there will also be more than 1,000 guests from abroad.

ILSI-Biomed 2011 Conference will be held 23-25 May at the David Intercontinental and Dan Panorama hotels in Tel Aviv.

ILSI-BioMed week – program at a glance.

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