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Israel’s Life
Sciences Industry:
2016 Assessment
Israel’s life science industry continues to thrive and has experienced rapid growth in
recent years. Following a decade of significant growth, the Israeli life sciences industry
plays a pivotal role in the world healthcare market, underpinned by its innovation and
excellence in academic research, government support and increasing funding options.
These factors are leading to ever more success and record investments, especially
from China. There are more companies involved in advanced stages of clinical trials
and an ever larger number of successful M&A transactions and IPOs of Israeli life
sciences companies, particularly on the NASDAQ.
Recent high profile transactions include the sale of cCAM Biotherapeutics to Merck
(for up to US$605 million), the sale of MIS Implants to Dentsply Sirona (for US$375
million) and the sale of HeartWare to Valtech for a reported US$929 million – almost
US$2 billion from three deals.
In addition, in one of the most significant China-Israel transactions to date in the
life science area, Oramed Pharmaceuticals concluded a US$50 million licensing and
investment deal with China’s Hefei Tianhui Incubator of Technologies Co. for rights
to Oramed’s oral insulin capsule technology in China. These transactions follow
other major life science transactions attracting global attention such as the 2014
acquisition by Covidien (now Medtronic) of Given Imaging, developer of the world-
famous “PillCam”, for US$860 million. These transactions are just the tip of the
iceberg.
In this article, we explore the sources of Israel’s vibrant life sciences industry and the
financing opportunities available in this area.
Sources of Life Science Innovation
Among the sources of life science innovation in Israel are first rate academic and
medical institutions, enhanced government support, and the active presence of
global life science companies in Israel.
Israel is blessed with a large number of world class academic and medical
institutions within a relatively small geographic area, giving rise to an
environment of cross-fertilization of disciplines that led to innovation in
medical technology.