86 THE US-ISRAEL | Legal Review 2025/26 Clinical data and speed to evidence. Israel’s universal coverage model, combined with advanced digitisation, supports exceptionally robust longitudinal datasets and real-world evidence generation. The Ministry of Health has long emphasised national connectivity, enhancing continuity of care and data availability across the entire healthcare system. At the health-plan level, this sophistication is equally striking. Clalit Health Services, Israel’s largest and, notably, one of the world’s largest HMOs, maintains decades of longitudinal data spanning millions of patient records. This is particularly significant today, as buyers and payers increasingly expect evidence of outcomes, workflow impact and real-world performance, rather than promising prototypes alone. Medtech strength, evidenced by strategic M&A. The strongest proof point for US investors is not marketing, but repeated acquisition activity by leading strategic buyers. Israel continues to serve as a vital source of clinically validated and increasingly de-risked innovation. Recent examples include: » Johnson & Johnson’s acquisition of V-Wave (up to $1.7 billion, milestone-based) » Boston Scientific’s agreement to acquire SoniVie (renal denervation / intravascular ultrasound; up to $540 million) » Edwards Lifesciences’ acquisition of the remaining stake in Vectorious (reported $497 million valuation) » Datavant’s acquisition of DigitalOwl (AI-driven medical data analysis), underscoring the depth of Israel’s clinical-data and health-information tooling ecosystem Deal-flow fundamentals. Even in a more selective venture environment, the sector remains robust. Reports from IATI and the Israel Innovation Authority highlight significant capital investment in Israeli life sciences in recent years, showing a discernible trend towards larger, more mature transactions. Broader market data similarly suggests that while the number of funding rounds in 2025 may have decreased compared with previous years, aggregate deal value has remained substantial - a trend consistent with a broader flight to quality. Taken together, these dynamics create favourable conditions for cross-border M&A and structured growth investments. For US buyers, the current environment offers a particularly attractive entry point characterised by high-quality assets, more realistic valuations and sellers who increasingly prioritise certainty of execution and genuine strategic partnerships. Where are the real opportunities? While Israel produces a large number of innovative healthcare technologies, experienced investors increasingly recognise that the most durable opportunities are often built through platform strategies rather than isolated technology bets. In the current market, US entrants achieve the strongest results when they move beyond one-off technology acquisitions and instead pursue a platform strategy - building scalable Israeli operating footholds that can be expanded through bolt-on acquisitions, clinical partnerships and disciplined commercialisation. Provider platforms and hospital assets. There is a growing opportunity in private hospital and specialtycare platforms, particularly where operational excellence, service-line expansion and payer strategies can unlock value relatively quickly. In transactions we have advised on, such as the acquisition of a controlling stake in Herzliya Medical Center, sophisticated investors increasingly view Israeli provider assets not simply as stand-alone investments, but as comprehensive platforms for high-quality care delivery and broader innovation commercialisation. A related indicator is the continued evolution of private provider networks - for example, the launch of a new “Israel’s capital markets and currency performance through 2025 and into early 2026 reflect strong investor confidence, even as they continue to price in geopolitical and macroeconomic risks. ”
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