BIOTECHNOLOGY IN ISRAEL –

TRENDS

Dr. Haim Aviv

Opportunity

Good science

Motivated people

International outlook (US oriented

Critical mass (160 companies)

Profile of Biotechnology Companies 1990-2000*

1990 1992 1993 1995 1997 1999 2000

Sales ($million)

50 179 209 250 336 600 800

Employees

600 2,170

2,540

2,840

3,500

3,800 4,000

No. of Companies

30 63 87 100 135 160

* From The National Biotechnology Committee’s Report

Challenges

Managerial skills & experience

Financial resources

Political & geographic conditions

Issues1. Probability for billion dollar

companies?

- Depends on successful development of one/two major products

- Stay independent

Pharmos CorporationNeuroprotective dexanabinol in

Phase III trial for traumatic brain injury. Market potential – billion $.

Product for stroke after preclinical testing, beginning tox Studies.

Novel compounds identified for pain, autoimmune and vascular diseases

2. Production in Israel or license out?

- Collaboration/partnerships vs. license

- Production in Israel (not critical)

3. Israel as development center

- Political & Geographic constrains

- Partnerships/co-development

4. Mergers & Equisitions

- M&A between “Israeli” corporations

- M&A with “non Israeli” organizations. Will depend on exciting products and technologies