israels' life science industrythe wealth of innovation

The Wealth of Innovation

IsraelIsraelLife Science IndustryLife Science Industry

December 2008

43.4%43.2%44.4%44.0%

42.5%

38.0%

36.0%35.0%

31.0%

2008E20072006200520042003200220011995

Export as % of GDP

MissionMission Promote Trade, Joint Ventures and Strategic Promote Trade, Joint Ventures and Strategic

Alliances between overseas and Israeli Alliances between overseas and Israeli Companies.Companies.

Endorse the integration of Israeli companies Endorse the integration of Israeli companies into the global market. into the global market.

GoalGoal Facilitate Business OpportunitiesFacilitate Business Opportunities

The IEICIThe IEICI Your Link to the IndustryYour Link to the Industry

Israel and NeighboursIsrael and Neighbours

Necessity is the Mother of InventionNecessity is the Mother of Inventionss

Israel at a Glance Israel at a Glance

Area: 21,000 km2

Population: 7 Million GDP/Capita: $22,560 (25,870 PPP) Total Export: $70.7 Billion (12.2%) Export of Goods: $49.4 Billion (13%) 5 years average Inflation rate: ~2.2% Penetration [House hold]:

Mobile - 98% Fast Internet - 72% [39 H/week]

Global CompetitivenessGlobal CompetitivenessIsrael 2007 - 2008Israel 2007 - 2008

In the global competitiveness index Israel is ranked 17/131

Notable Advantages Rank Quality of scientific research institutions 3 Availability of latest technologies 3 Utility patents 3 Venture capital availability 5

Source: World Economic Forum (2007-2008)

322545433333

140

8380605555

0.00

IsraelUSA

JapanGermany

Canada

SwissTaiwan

UKIrelandItaly

Singapore

Spain

from Creation Creationto Creativity Creativity


Science Science && Novelty NoveltyNobel Prize WinnersNobel Prize Winners

Prof. Avram Hershko & Prof. Aaron CiechanoverProf. Avram Hershko & Prof. Aaron Ciechanover

Winner of the 2004 Nobel Prize in ChemistryWinner of the 2004 Nobel Prize in Chemistry

Total of 8 Nobel Prize winners in Economy (2005, Total of 8 Nobel Prize winners in Economy (2005, 2002), Literature (1966) and in Peace.2002), Literature (1966) and in Peace.

The Industry DriversThe Industry Drivers

1.1. Technology Transfer OrganizationsTechnology Transfer Organizations

2.2. Commercialized defense technologyCommercialized defense technology

3.3. Healthcare systemHealthcare system

4.4. Strong entrepreneurial spiritStrong entrepreneurial spirit

5.5. Powerful VC communityPowerful VC community

6.6. Highly skilled workforceHighly skilled workforce

7.7. Institutional incentivesInstitutional incentives

Well of NoveltyWell of Novelty Creative fusion between academia and Creative fusion between academia and

businessbusiness

69 - 75 Basic Research

75 - 87 Clinical Trials

87 - 96 Teva Licensing

1996 - FDA Approval

http://www.trdf.co.il/

http://www.tau.ac.il/ramot

http://yeda.weizmann.ac.il/

http://www.biu.ac.il/birnd/

http://www.agri.gov.il/Units/Kidum/Kidum.html

http://www.yissum.co.il/

http://www.bgu.ac.il/bgn/

http://www.bio-rap.com/

Fountain of InnovationFountain of Innovationand they shall beat their swords into and they shall beat their swords into

plowshares…plowshares…

Given ImagingGiven Imaging Galil MedicalGalil Medical

Remon MedicalRemon Medical MTC IndustriesMTC Industries

Spring of CreativitySpring of Creativity Early adopters physicianEarly adopters physician

Healthcare expenditure 2008Healthcare expenditure 2008 7.5% of the GDP, (1,898$ per capita)7.5% of the GDP, (1,898$ per capita)

3.9 Physicians per 10003.9 Physicians per 1000 44 general hospitals (373 hospitals), 42,100 beds44 general hospitals (373 hospitals), 42,100 beds

28,600 physicians and 29,500 nurses.28,600 physicians and 29,500 nurses.

About 300 MDs graduate from Israeli universities each About 300 MDs graduate from Israeli universities each yearyear Sources: Economist Intelligence Unit.

http://www.sheba.co.il/index.html

http://www.gba.co.il/

http://www.hadasit.co.il/

http://www.tasmc.org.il/main/siteNew/index.php?langId=1

http://www.mor-research.com/

CultureCulture

Strong Entrepreneurial Spirit.Strong Entrepreneurial Spirit.

Improvisation - Risk taking attitude.Improvisation - Risk taking attitude.

Military service based - Intense social networking.Military service based - Intense social networking.

Convergence - Different socio-economy Convergence - Different socio-economy backgroundbackground

Informality - Easy access to decision makers.Informality - Easy access to decision makers.

Extensive new immigrants - Multicultural Extensive new immigrants - Multicultural environment.environment.

MedinolGregory Pinchasik

Private VC IndustryPrivate VC Industry

199219921 Government Fund1 Government Fund

$100 Million$100 Million

20082008~~80 Private VC Funds80 Private VC Funds

$10 Billion$10 Billion

PontifaPontifaxx

ArteArte AurumAurum InnoMeInnoMedd

Highly Skilled WorkforceHighly Skilled Workforce

34% of the population holds university degrees.34% of the population holds university degrees.

24% of the working force (324% of the working force (3rdrd after the US and Holland). after the US and Holland).

12% holds advanced degree12% holds advanced degree

40% of the 90’s immigrants hold academic degree.40% of the 90’s immigrants hold academic degree.

Institutional IncentivesInstitutional Incentives

Expenditure of civilian R&D In Israel & OECD countries

(% of GDP)

1.11.1

1.71.82.12.22.42.52.6

3.13.4

4.1

4.8

Italy

Irland

UK

Netherlands

Fran

ce

USA

Korea

Germ

any

Sw

iss

Japan

Finland

Sw

eden

Israel

Chief Scientists grantsChief Scientists grants

R&D ConsortiumsR&D Consortiums

Technology incubatorsTechnology incubators

Bi-National fundsBi-National funds

Federal grants (NIH)Federal grants (NIH)

EU FrameworkEU Framework

Marketing GrantsMarketing Grants


Business CardBusiness Card

Life Science Industry Life Science Industry DefinitionDefinition

Medical DevicesMedical Devices PharmaceuticalsPharmaceuticals BiotechnologyBiotechnology Healthcare ITHealthcare IT Healthcare ServicesHealthcare Services

Life Science IndustryLife Science Industry

Fast Growing Industry:Fast Growing Industry:19961996 By 2008By 2008

186 companies 186 companies over 1200 companiesover 1200 companies

70-80 new companies being formed each year70-80 new companies being formed each year 41% of Life Science companies were incepted in the last 5 41% of Life Science companies were incepted in the last 5

yearsyears 28% of Life Science companies generate revenues28% of Life Science companies generate revenues 41% of41% of Life Science revenue growth (H1) in 2008Life Science revenue growth (H1) in 2008

Fast Growing IndustryFast Growing IndustryYoung, Young, Creative, & InnovativeCreative, & Innovative

IndustryIndustry

Companies' Stage

Seed, 30%Revenue

Growth, 7%

Initial Revenue, 21%

R&D, 41%

Source: IVC

Over 1100 Companies

Medical Devices, 54%

AgroBio3%

Others1%

Pharmaceuticals 16%

Healthcare IT6%

Biotechnology, 17%

Medical DevicesMedical DevicesRanked 2Ranked 2ndnd for its Medical Devices for its Medical Devices

SolutionsSolutions

TopSpin MedicalTopSpin MedicalIntravascular MRI

InsightecInsightecMRI Guided non-invasive surgical

procedureX

Sirius ISSirius ISPerpetumobila

Molecules - Bio & Molecules - Bio & PharmaPharma

A World Leader in ResearchA World Leader in Research

Smart BiotechSmart BiotechTime traveling: up-to Time traveling: up-to 2 years in 5 days

BiondVaxBiondVaxMulti-season/multi-strain Flu vaccine

Protalix Protalix [AMEX: PLX][AMEX: PLX]Plant cell-based recombinant protein

expression technology

Healthcare ITHealthcare ITLeading in ImplementationsLeading in Implementations

Over 95% of MD’s use IT in daily practice.Over 95% of MD’s use IT in daily practice.

““Israel is among the world leaders in the usage of Israel is among the world leaders in the usage of Information Technology (IT) in Healthcare” (Gartner)Information Technology (IT) in Healthcare” (Gartner)


Wealth of ClustersWealth of Clusters

Drug Delivery & TargetingDrug Delivery & TargetingRejuvenate Expired MoleculeRejuvenate Expired Molecule

200 atmospheres 200 atmospheres

40,000 g of acceleration40,000 g of acceleration

NanoCyteNanoCyteLeveraging nature toward Human careX

Accordion Pill™ IntecPharmaIntecPharma

Controlled release of drugsX

Other ClustersOther ClustersA Short ListA Short List

Home CareHome Care

RehabilitationRehabilitation

MonitoringMonitoring

ImagingImaging

DiagnosticsDiagnostics

EMSEMS

Cell TherapyCell Therapy

Wound CareWound Care

Hospital Hospital EquipmentEquipment

Ambulatory Ambulatory SolutionsSolutions

Cardiovascular Cardiovascular (Dev)(Dev)

MISMIS

DentalDental

Oncology (Bio)Oncology (Bio)

NutraceuticalsNutraceuticals


Bringing InnovationBringing InnovationAround the WorldAround the World

International PresenceInternational PresenceWith Equity PositionWith Equity Position

Mark the DateMark the DateMeet the IndustryMeet the Industry

www.kenes.com/biomedwww.kenes.com/biomed

Knowledgebase PortalKnowledgebase PortalIntuitive Map & Smart SearchIntuitive Map & Smart Search

www.export.gov.il/lswww.export.gov.il/ls

IsraelIsraelThe Promised LandThe Promised Land

15 May 194815 May 1948

680,000680,000

20082008

7,280,0007,280,000

ThanksThanks

Choose IsraelChoose IsraelLet us do the restLet us do the rest

David FurstDavid FurstLife Sciences DirectorLife Sciences [email protected]

www.export.gov.il/LSwww.export.gov.il/LS

mailto:[email protected]