TEL AVIV, Israel–(BUSINESS WIRE)–The Israeli life sciences industry is going stronger every year with an increasing number of Israeli life sciences companies. Approximately 1,600 life sciences companies are active in Israel, employing over 83,000 people. In terms of investments, the life science industry attracted a record $1.5 billion in 2018, an increase of 25% over 2017. These findings are presented in the IATI’s 2019 Israeli Life Sciences Report. Israel Advanced Technology Industries (IATI) is the umbrella organization of the high-tech and life sciences industry in Israel.
The report shows that the trend of increase in the share of investments coming from Israeli investors continues in 2018. More trends which continue in 2018 are the increase in the amounts invested in deals of over $20 million, with an all-time annual high of $920 million; and the increase in investments made in later stages companies.
The report discusses six of the industry’s rising sectors: Women’s Health and Femtech, AgeTech, Regenerative Medicine, Medical Cannabis, FoodTech and Health Systems. Special Chapters are dedicated to the export of Israeli Life Sciences products; to Industry-Academia Collaboration and patent applications; and to future forecasts.
Of the total $1.5 billion that was invested in life sciences companies in 2018, as much as $619 million (41%) came from local investors. This is a significantly higher than the 5 years average of $435 million in 2013-2017. According to the report, interest in the Israeli life sciences sector by both local and foreign investors has reached the highest level ever.
Israeli VC investments in life sciences companies in 2018 was $190 million, 13% of the total investments in Israeli life sciences companies. Total VC-backed investments remained stable, reaching $977 million, or 65% of total investments.
Over the last five years, Israeli life sciences companies raised over $2.7 billion on NASDAQ. 16 of 38 Israeli life sciences companies traded on NASDAQ raised $568 million in initial and follow on offerings in 2018; investors on the Tel Aviv Stock Exchange (TASE) remained cautions, with only four companies raising $7 million.
2018 was another remarkable year in M&A for the Sector. Four out of the 10 largest high-tech deals made in Israel in 2018 were life sciences companies. Mazor Robotics, acquired in 2018, was the first to reach the $1.5 billion milestone, surpassing the previous largest exit by NeuroDerm in 2017.
IATI CEO & President Karin Mayer Rubinstein said: “The Israeli life science industry keeps seeing a significant rise in the number of companies, investments and deals. The numbers represent a thriving industry, with a substantial part in the total growth of Israeli economy. As the umbrella organization of Israeli tech industries, IATI will keep promoting these industries thus contribute to the strength of Israeli economy and society”.
Download the full Report: https://www.iati.co.il/resource_item.php?ID=436