The survey, conducted ahead of the Israel Biomed conference that will be held this month, even reveals that the field of medical devices led the recruitments in the life sciences sector - with 71 million dollars
A joint survey by the research company IVC and the accounting firm KPMG Somach Chaikin on capital raising by companies in the field of life sciences in Israel, conducted in advance of the ILSI-Biomed Israel 2012 conference (between May 21 and 23, in Tel Aviv), found that in the first quarter of 2012 , the life sciences sector, similar to the corresponding quarter last year, led the fundraising with 130 million dollars - 27 percent of the total fundraising. It should be noted that this is the highest amount for the sector in the last two years. The average fundraising round in the life sciences in the first quarter of 2012 was $3.42 million, compared to an average of $3.26 million in the fourth quarter of 2011 and $3.97 million in the corresponding quarter last year.
38 life sciences companies raised $130 million in the first quarter of this year, compared to 23 companies with $75 million in the fourth quarter of 2011 (13 percent of the total high-tech fundraising in the quarter), and compared to 32 companies with $127 million (27 percent), raised in the first quarter of 2011. The amount raised in the first quarter of this year represents a significant increase of 73 percent from the amount raised by companies in the previous quarter, and almost the same as the amount raised by companies in the first quarter of 2011, with an increase of 2 percent.
In the first quarter of 2012, three life sciences companies raised between $5 million and $10 million each. Four companies raised between $10 million and $15 million, and one life sciences company raised $15 million this quarter.
The medical devices sub-sector led the investments in life sciences with 71 million dollars, 55 percent of the total amount invested in the field, and 15 percent of the total recruitments in all fields in the quarter. The amount raised in the field of medical devices in the first quarter of 2012 represents an increase of almost 30 percent from the average of $55 million in 2011. The field of drug development attracted $54 million, which is 42 percent of the amount raised in the life sciences sector, and 11 percent of the capital raised in all areas The high-tech in the first quarter of 2012.
According to the survey by the research company IVC, life science companies attracted the largest share of investments in the research and development stage (Early Stage) with 45 percent of all investments at this stage among Israeli hi-tech companies. In the late stage of sales (Late-Stage), life sciences companies came in second place with 23 percent of the total investments at this stage in the first quarter of 2012.
Also, in 2011, several new funds dedicated to investments in the field of life sciences were established, the largest of which are Orbimed ($220 million) and Pontifex ($88 million).
Kobi Shimana, CEO of IVC, notes that "even in 2011, the field of life sciences stood out among all the other fields in the high-tech industry in Israel. I am sure that the list of exits in the field in 2011, the agreements and achievements reached by the companies in 2011, will provide a boost to the field this year as well."
