Présentation des biotechnologies en Israël et du secteur médical en Israël

Prepared by A. Zeitoun, MD

Dr. Alain Zeitoun Pharma & Medtech

France - Israel

1


Israel economy, industrial production and Trade - Highlights

2


Israel at glance

• Population: 8 million

• Area: 22,145 sq.km

• GDP 2013: $291b, per capita: $36K

• 2010: +4.8%, 2011: +4.7%, 2012: +3.4%, 2013: +3.3%

• High-Tech exports: 2010: $44b, 2011: +4.3%, 2012: +3%

• Inflation: 2011: 2.2%, 2012: 2.2% - about 1% in 2014?

• Unemployment: 2012: 6.9%, 2013: 6.2%, slight increase in 2014

• OECD: 2010 full membership

• Nobel prize: 10 winners, 6 in science, 2 in economics

• DP 2011 rate of growth - global comparison: OECD member average:

1.9%, US: +1.7%, Japan: +0.3%, Germany: +3.0%, France: +1.6%

China+ 9.3%, India: +7.7%

3


Inflation Rate Rate of change in consumer price index

Source: Central Bureau of Statistics

Source: Bank of Israel

4


Corporate Tax 2012

Ireland

Chile

Greece

Iceland

UK

Finland

Netherlands

Austria

Israel

OECD average *

Canada

Italy

Norway

Spain

Australia

Germany

Portugal

Belgium

France

US

Japan

13%

17%

20%

20%

24%

25%

25%

25%

25%

25%

26%

28%

28%

30%

30%

30%

32%

34%

34%

39%

40%

Corporate Tax

Source: Israel Ministry of Finance

5


Total industrial production grew by 3.8%

Industrial Production Average Annual Growth - 2013 average relative to 2004 average



6


Exports of Goods and Services As a share of GDP

Effects of the global economic crisis


7


Main Export Destinations As a share of total exports



8


Main Trading Partners $ US Billions, 2013

* The data on trade with Hong-Kong is added to the data regarding China



9


Israel’s Free Trade Agreements

1985

1992

1997

1997

1999

2000

2007

USA

EFTA

Turkey

Canada

Mexico

European Union (Association Agreement)

MERCOSUR

QIZ Agreements

2004

1998

Egypt

Jordan

Colombia* 2013

* Yet to be ratified


10


Israel – HR stance

11


Unemployment and Participation As % of total labor force


Since the 2nd quarter of 2009 unemployment is relatively decreasing, with a gradual increase in the participation rate since the beginning of 2010.

Source: Bank of Israel

12


Ease of Doing Business 2012

Source: The World Bank. 2012 report covers 183 economies.

Singapore

Hong Kong

New Zealand

USA

Denmark

UK

Korea

Ireland

Finland

Canada

Japan

France

Austria

Israel

South Africa

Italy

1

2

3

4

5

7

8

10

11

13

20

29

32

34

35

87

Ease of Doing Business Rank 2012

13


Dismissals during 2008/9 Global Crisis Employee Jobs in the Business Sector

5.4%4.9%

4.2%

3.3%

0.9%

-0.7%

-1.7%-1.8%

0.2%

2.8%

4.5%4.3%4.5%4.3%4.1%4.3%

2.8%2.4%

1.7%

Employee Jobs in Business SectorChange Rates, Each period Compared to the Parallel Period in a Previous Year


14


Employment Flexibility During 2008/9 Crisis

80%

30%

7%

15%

6%

11%

Reducing Overtime

At the expense of employees' vacation days

Unpayment vacation

At the expense of employees vacation days

while lowering wages

Reducing job scopes while lowering wages

Efficiency Measures Taken by Industrial CompaniesTowards all Employees, Excluding Management


15


Israel – innovation driven economy

16


Competitiveness Report 2013

Source: World Economic Forum 17


4.4

1.8

1.3

3.8

2.8

2.3

2.0

1.81.9

1.7 1.71.6

1.3

0

1

2

3

4

5

Isra

el

Fin

lan

d

Germ

an

y

Fra

nce

Belg

ium

EU

27

Czech

Rep

.

Un

ited

Kin

gd

om

Can

ad

a

Irela

nd

No

rway

Sp

ain

Italy

Israel is a World Leader in Science, Technology, and Innovation

Source: OECD. * International Institute for Management Development (IMD) Global Competitiveness Yearbook 2013. ** World Economic Forum (WEF)

Global Competitiveness Report 2013-2014.

Civilian R&D as % of GDP, 2011 1st in R&D expenditure as % of GDP*

1st in quality of scientific research institutions**

1st in public expenditure on education*

1st for innovative capacity*

2nd for entrepreneurship being widespread amongst

its managers*

5th in PCT patents applications per million

population**

6th for strength of investor protection**

6th for Nobel Prizes per capita in the fields of physics,

chemistry, physiology, medicine and economics since

1950* Source: Bank of Israel

18


Some High-Tech success stories

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The Importance of High-Tech to Israel

• Main contributions to the economy – 40% of GDP annual growth, 50% of industrial exports

– 40% of VC investments ends as tax revenue, direct and indirect each US dollar invested in R&D contributes 6 US dollars to industrial product

• Most new employment comes from new small businesses – 3:1 ratio of direct and indirect employees to engineers

– employment growth rate is double that of the rest of the economy

• Suited to Israeli business culture – entrepreneurial culture – creative, persistent, innovative, win attitude

– large number of entrepreneurs and engineers per capital

– using limited resources cost effectively

• Magnet of attraction to foreign investors

• Second only to the US

20


Foreign companies invested in Israel - exple

21


Israel Life Science - overall

22


Israel Life Sciences Cluster

23


Expenditure on R&D - as % of GDP,2010


In 2009, 62% of Israel’s civilian R&D spending (US$4.7bn) took place in Israeli foreign owned companies. In addition, 92% of exported R&D services (US$3.4bn) originated from these companies.

24


Technology Transfer Organizations (TTOs)

University-associated and hospital-linked TTOs provide a forum for connecting Israeli researchers and early stage projects with the industry through their commercialization efforts

• Hebrew University’s Yissum, founded in 1964. Yissum generates a similar output as its counterparts at MIT and Stanford, with 7,000 patents to date.

• Yeda Research and Development Company is responsible for technology transfer from The Weizmann Institute of Science.

• Hadasit, the TTO of Hadassah Medical Organization, has established a number of start-up companies, six of which have already gone public

• Ramot, the TTO of Tel Aviv University, recently joined forces with J&J to establish a joint research fund (metabolic disorders, CNS, cancer and stem cell research.

• The Technion Institute of Technology, largest center of applied research in IL. Recently, opened Mann Institute for R&D : biomedicine, medtech and life

25


Israel Life Science – Sectors and Stages

Source: ILSI/IATI database 2009

26


Medical Devices companies - sectors


27


Biopharma companies - sectors


28



Main Medical Fields - companies


29


Life Sciences companies - # of employees


30


Life Sciences patents as % of total patents

Source: ILSI/IATI – USPTO 2007

31


Cumulative number of Life Sciences companies

Source: ILSI/IATI / IVC – 2012 analysis

32


Biopharma – main therapeutic areas

• CNS – Four Blockbuster drugs in market (Copaxone, Rebif, Exelon, Azilect) - 5 Additional drugs in clinical stages

• Regenerative medicine & Cell Therapy (20 active companies, 4 in clinical trials)

• Cancer - Cell Therapy, Monoclonal Antibodies, Small Molecules, Image Guided Technologies

• Inflammation & Autoimmunity

• Cardiovascular

• Infectious diseases, Vaccines

33


Stem Cells – strong specialty field

• Israel is one of the world centers for stem cells research and technology development.

• The Jewish religion does not hinder stem cell research – a significant plus.

• Israeli scientists are the most prolific authors on a per capita basis of published articles related to stem cell research.

• There are about 20 companies actively engaged in this new industry.

34


Biopharma – some examples BioLineRx is a clinical-stage, traded biopharmaceutical development company that develops products suitable for the pharmaceutical market satisfying an unmet medical need or exhibiting advantages over current therapies.

CollPlant (CLPT) is a biotechnology company specializing in the development and commercialization of plant-derived functional recombinant human collagen formulated for a variety of medical solutions.

Can-Fite has developed a platform technology that targets the A3 Adenosine Receptor for treatment of cancer and autoimmune inflammatory diseases.

Gamida Cell is developing unique stem cells therapeutics, based on its proprietary stem/progenitor cells expansion technologies.

Rosetta Genomics is a leader in the development of microRNAbased diagnostics tests for personalized medicine.

And …Atox Bio (Infectious Diseases), Cellcure (stemcells in Parkinson), Biocancell (Gene therapy), BiondVax (Intra nasal vaccines for several flu strains), Compugen (therapeutic &diagnostic drug discovery)

35


Medical Device – main therapeutic areas

• Electro-medical & Surgical Devices

• Therapeutic and Rehabilitation Equipment

• Dentistry

• Medical Supplies

• Telemedicine

• Health IT

• Diagnostics – electronics and non-electronic

• Hospital Planning & Engineering Consulting Services

36


Medical Device – some companies Given Imaging - 1st ingestible video camera used to view the small intestine and diagnose disorders.

Peer Medical – 3D view endoscope to diagnose gastrointestinal polyps, which can develop into bowel cancer.

Insightec - Image Guided HIFUS (High Intensity Focused Ultrasound) and MRI guided non-invasive surgical procedure

Medinol - pioneered the development of closed cell stent design and many additional innovations to the field of heart catheterization.

GE Healthcare in Israel manufactured the world’s first miniaturized portable cardiac ultrasound system

Philips Brilliance CT scanner, developed in Israel takes a comprehensive picture of a patient in seconds instead of minutes.

And more: 3D Dental Mapping, Fixed non-cooled Magnet Open MRI, Simulators for Medical Procedures, Labor Monitoring, NiTiNOL Tooling, Intravascular miniaturized MRI imager, Spectral Imaging Device, Various Stents, Revolutionary Rectoscope, Implantable Insulin Generator, etc

37


Itamar Medical produces innovative diagnostic devices based on proprietary technology to diagnose disorders associated with cardiovascular and autonomic nervous systems.

BioView delivers cell imaging technology platform and software package that combines morphological, immuno-staining and FISH information on the same cell, enabling physicians and researchers to efficiently and effectively improve the quality of patient treatment and care.

Impliant produces novel cushion-bearing materials and engineering combine to create long-lasting orthopedic implants for the hip, knee, shoulder, and spine.

Medical Device – some companies

Brainsway Ltd. is dedicated to the development and marketing of Deep TMS (Transcranial

Magnetic Stimulation) systems, novel, noninvasive medical device for treatment of a wide

range of neurological and psychopathological disorders.

HeadSense Medical Ltd. is develops disruptive products that will allow physicians and

patients to diagnose and monitor clinical parameters in an easier and cost-effective way.

HeadSense’s first product the HS-1000 is a non-invasive ICP monitor offering accurate and

continuous ICP monitoring.

IceCure (TASE: ICCM) is a medical device company focused on developing and marketing minimally invasive, office-based cryoablation treatment solutions for women’s tumors. The proprietary IceSense3™ Cryoablation System offers a comfortable, ultrasoundguided procedure to treat breast tumors.

38


Israel Life Science – Government support

39


Israeli Government Support

– The Law for the Encouragement of Capital Investments

– Tax exemption path for manufacturing facilities

– The Law for the Encouragement of Industrial R&D

– Increased grants and longer project support for Life Sciences

– Company-Company, Company-Consortia, Company-Academy support programs

– The Global Enterprise R&D Cooperation Framework

– Special tax benefits for R&D centers

– Tax exemption for venture capital investment

– Annual Government support for Int. R&D projects: $100m

– Grants - scale from 20% - 85% of budget + regional incentives

– Conditional : royalty payments 3% - 5% of future product sales

40


OCS Government Support Programs

Generic R&D

Magnet

Magneton

Competitive R&D

Industrial

R&D

Pre-Seed

Tnufa

Nofar

Technological Incubators

Cooperative R&D

Long-Range R&D

Seed Fund

Applied Academic Research

Basic R&D Market Proximity

Bi-national Funds

(Europe FP)

Inte

rnat

ion

al

Global Enterprises R&D Cooperation

Bi-national Agreements

Galileo

41


The Technological Incubators Program Government Response to Market Failure

Primary Objective

• Creating new startup companies that would not start otherwise

Secondary Objectives

• Transferring technology from research institutes into the industry

• Creating industrial R&D activity in peripheral regions

• Creating a technological entrepreneurial culture in Israel

• Providing deal flow for the venture capital industry

42


What incubators provide to entrepreneurs?

43


Incubator support

• Incubation Period: 2 years

• Average budget: ~$600K for 2 years

• Government grant: 85% of budget

• Incubator’s investment: 15% of budget

• Extended Support

• Biomed and Clean-Tech projects (3rd year)

• Projects initiated in Peripheral Incubators (Increased budget)

• Payback: 3% royalties from annual revenue

• Annual Government Budget to the Program: ~$ US 45 Million

44


Incubators network

45


Government funding vs. private investment 1991-2013 Private funding and VC leveraging government’s money

46


OCS Grants by Technological Sectors, 2012

Source: Office OCS

47


Issue – funding of Biopharma Industry

The Problem:

• Over dependence on ICT and a lack of investment in the bio-tech and Life Science area

Solution:

• Significant encouragement for the bio-tech industry in Israel via public-private funding

Description:

• Public-private funds for bio tech. Government’s $104m leveraged with a minimum of $300m private funds.

Status:

• Several funds created, managed by VCs under supervision of Ministry of Industry

• Example: $200 m fund managed by Orbimed, mainly invested in NCE, 505(b)2 and diagnostic companies

48


The Problem:

• Not enough money is raised by SEED-stage companies.

• Not enough incentives for Early Stage investments

Solution:

• Allowing investment in an R&D-focused company to be reported as an expense on “day one”

• “Angel Law” – allows investment to be tax deducted

Description:

• Deducting this investment as an expense against income from all sources, spread over three years

Issue – Seed and Early Stages funding

49


Issues - Minorities & High-Tech Industry

Problem:

• Low rate of Arab minority, Ultra-orthodox employees in the high-tech industries

Solution:

• Incentives for high-tech employers to employ underrepresented communities

Description:

• Adjusting the Ministry of Industry’s support programs, which subsidize cost of salaries for high-tech industry

• Examining other options to encourage employment via the Chief Scientist’s programs, i.e. specific incubators

50


Israel Life Science – VC funding

51


15 Years of Venture Capital Activity at a Glance

• $20 billion invested in the VC sector

• $14 billion raised by Israeli VC funds

• M&A: $28 billion, IPO: $6 billion

• More than 5,000 startups established

• NASDAQ: 100 Israeli high-tech companies are listed

• Main contributor to the economy, GDP, export, employment

• Human capital emerged as Israel’s main resource

• Global recognition achieved as an innovative technology center

Source IVC 2012

52


High-Tech capital raising

53


Israel Life Science – M&A and IPOs

54


Israeli High-Tech Exit Highlights

• VC-Backed Exits up to $4.2 billion; account for 63% of total capital

• 2013 M&A deals totaled $6.3 billion

• Average M&A deal in 2013: $87 million

• 2013 IPO activity is back with $361 million raised by 8 companies

• Positive trends for 2014

Source: IVC Research Center

55


All Israel High-Tech exits 2004-2013


56


Israel High-Tech exits by sector (%)


57


Top 5 exits in 2013 by sector


58


Deloitte – VC confidence survey

59


France-Israel Life Science Events and cooperation actors

60


Save the dates – Bio Events in Israel Opportunities to meet israeli companies and bio actors

French Israeli Forum on Medical Robotic

Tel Aviv March 23rd -24th 2015

Coordinated by Ubifrance, the Scientific Department of the French

Embassy & the Israeli Ministry Of Science & Technology (MOST)

Mixiii BIOMED by IATI - Israël 2015

Tel Aviv - May 12th -14th 2015

Organized by Israel Advanced Technologies Industries - French

Pavilion, individual meetings coordinated by Ubifrance Israel

MedInIsrael congress 2015

Tel Aviv - May 16th -19th 2015

Following Mixiii Biomed – focusind on Medical Devices + Health IT

coordinated by the Israel Export Institute -

61


A dedicated and adapted portfolio of services

Promote French know-how

Business forums, pavillons in international

Trade shows, targeted and qualified B2B

meetings

Supports the French Innovative

ecosystem (companies, start-ups,

clusters) in its international expansion

Technological partnerships meetings for

innovative companies

Partnership missions w. specialized clusters

UBIFRANCE

Supporting French

companies abroad

Providing operational

information about

upcoming markets and

opportunities,

Identification of the

key players in each

relevant market, raising

awareness about French

expertise,

Matching French

companies with the best

foreign partners.

62


France-Israel Technological partnerships and Innovation - bilateral framework !

A priority for both Israeli and French governments At the core of the French President’s State visit in Israel in 2013

Foster bilateral innovative R&D partnerships Since 2014 : 1 Bpifrance staff established within Ubifrance team in Tel Aviv.

FIRAD France-Israel Industrial R&D program

2 submission deadlines: End of May (over now), November 30th

A wide diversity of projects submitted, amongst which: E-health: solutions for breast cancer detection / Medical Device / New

Media: Real time web content enrichment and semantic analysis / Energy: fuel production re-using industrial heat

May 2014: 15 projects at the 1st Call

63


Teams covering all the process from match-making to funding

2 pilot organizations

1 support team based in Tel Aviv

2014: 2 dedicated managers representing French public institutions

Supporting and matching Israeli & French companies

…And a global coalition of institutions and networks

French Embassy in Israel, French & Israeli Ministries of Economy, Ubifrance, Tel Aviv University, French-Israeli High Council for

Science & Technology…

64 64


Save the date: French-Israeli Innovation Day

– Hosted alternatively by the French and Israeli Ministry of Economy

– 1d conf. + B2B sessions, 1d on-site business tours

– ID1: Paris, December 5, 2011 – 400 participants

– ID2: Tel Aviv, November 19, 2013 – 800 participants

Innovation Day 3: Paris - December 16,17 2014

– FinTech & e-Commerce

– e-Health & Personalized medicine

– Big Data & the City of tomorrow

65


The French networks’ access points

Anne BAER France-Israel Innovation and Technological partnerships expert, French Ministry of Foreign Affairs [email protected]

Aurélie GUTHMANN Country representative - Israel Bpifrance [email protected]

French companies Israeli companies

66

mailto:[email protected]

mailto:[email protected]

http://www.iserd.org.il/


Important actor – Israel Advanced Technology Industries – IATI www.iati.co.il

67


IATI annual congress – Mixiii Biomed Israel Biomed / High-Tech congress – 12-14 May 2015

68


Israel Export Institute - MedInIsrael In conjunction w. Mixiii Biomed – 16-19 May 2015

69


Thank you – merci pour votre attention - toda

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Présentation des biotechnologies en Israël et du secteur médical en Israël

Health & Medicine