Says Israel Mak Webb, former president and CEO of Teva, and co-chairman of the Biomed Israel 2008 conference that will open on Tuesday this week in Tel Aviv. First article in the Blue-White Biomed series
(The authors specialize as part of their activity at "DMC - Donitsa Marketing Communications", in the field of biotechnology and medical devices)
Many changes have taken place in the Israeli life sciences industry from the 80s until today. The "ILSI-Biomed Israel 2008" week, which is expected to attract the best forces in the world to Israel in May, is an opportunity to review the evolution of the industry from its early days to the present day and to wonder aloud about the question of the questions: What is needed in order to succeed in the Israeli life sciences industry?
The leadership of the annual conference was taken on this year by two people who represent the industry well: Ruthi Alon, a partner in the Pitango venture capital fund, director of the investments department at Biomed companies and chairman of the Israel Life Science Industry (ILSI), who volunteered to serve as committee chairman The Gentile of the conference and Israel Makov, co-chairman, considered one of the leaders of the economy and champions of the biotech industry in Israel, former president and CEO of Teva and currently chairman of the medical equipment company Givan Imaging of the IDB Group.
Israel, try to place Israel on the global life sciences map in terms of its size and supply to the world market and in terms of the innovation it brings to the world.
"The biomed industry in Israel is quite a leader in the global industry, especially in the field of entrepreneurship and innovation. Today we have reached sufficient maturity in order not only to produce and sell innovation, but also to develop an industry centered in Israel and whose activity is global. We are in the swing of innovation more than the swing of the industry itself, and I would also be happy to see that (happen at the same time)."
According to Makob, the Israeli biomed industry is more mature and the leading companies in it will be given a platform to present themselves to the outside world. "This is also the reason that our emphasis this year at the conference is not on scientific lectures, but on business lectures, presenting the companies outside. We give an equal opportunity to every company and estimate that the companies themselves, who are interested in introducing new technologies, will create the interest. This year's buzz will be created by the interaction between the presenters and the viewers."
What is needed for biotechnology to become an engine of growth in our economy? What is needed in order for the Israeli economy to derive the full benefit from the potential inherent in the biomed industry?
"The industry is ripe for the beginning of the process of becoming multinational companies. To date we have 'sold' Israeli innovation in the early stages of the value chain to foreign parties, but today we should not be afraid of the challenge and realize the companies, not at the low stage, but towards the global industry, so that it will contribute to Israeli industry and economic growth. We have every possibility to do it. We have the appropriate manpower and we just need to train more managers, who can bring with them experience and who will be ready to face the challenges of turning the companies into global companies."
According to Makov, the influx to the stock market is a source of recruitment, but going to the stock market too early is a burden on the company, which suddenly has to deal with quarterly results and managing a listed company, instead of dealing with the innovative scientific issue, which is the main issue. "I do not favor those cases where the funding of the funds is not good enough, and there is no choice and the stock exchange comes as a compromise. This is not the ideal situation. If there is another choice, it is better not to enter the stock market in the early stages of the company."
"The government gives quite a lot," says Makob, "but it definitely needs to invest more in education in order to raise new generations of innovative entrepreneurs. We need the specific assistance in giving priority to some areas and even if she gave them priority in the past, I would like to see her provide more resources."
In your opinion, will it be possible to reproduce the success of "Teva" in other biomed companies?
"I think it is possible to establish 'Teva 2' here. It is certainly possible to reproduce the success, because the companies can meet the challenge and become global and not sell themselves, but operate from here. Let them follow the path of 'nature' in terms of independence and not be sold to foreigners."
Where do you think the industry is headed?
"I expect the industry to continue to grow. It is ripe to reach the second stage of global companies, such as 'Teva'. I strongly believe that Israeli biomed companies, mature and strong, will drive our economy."
According to Ruthi Alon, the goal of this year's conference is to bring as many investors, business development managers and delegations from Europe, the USA and the East as possible. "This is also the reason why we chose to present the most advanced, mature and mature Israeli companies, which are either in the sales phase, or in the clinical trials phase. All participating companies will present the business and practical aspects and not the medical-scientific aspects. The event website also devotes a considerable part to the business part: each exhibiting company has a link to its business description and its website (if there is one). The purpose of choosing business and non-scientific lectures: that way, all of the conference attendees, some/most of whom do not have a great understanding of a specific field, will be able to understand all of the lectures, the main trends in the global biomed industry, and each specific field will find the understanding - how to integrate into these broad trends. The lectures will present the chances and risks in the global biomed industry - each time from a different direction. One of the goals of the organizers this year is to enrich the knowledge about 'what is required from a start-up company in order to succeed in the global industry.'"
According to Alon, the open poster/networking room will focus on 4 areas: 1. Immunology, the theory of immunity, 2. Cardiovascular, 3. Oncology, tumor research and the ways to cures, 4. Metabolism and endocology. "We approached people from the industry, from the hospitals, from the academy (also from technology commercialization companies such as Ramot), and we gave them the option to lecture in this room. Considerable time will be devoted to the incubators, in order to also give the young companies a stage at the event. Above all, we are happy that the country's president, Shimon Peres, who spoke a lot about the importance of Israeli science, will open the event and express his vision, as one of the enthusiastic supporters of this industry."
A sense of the maturation of the market
"The year 2007 gave a general feeling of the maturing of the market and of action and activity based on experience instead of wandering in the dark in the past", concludes Gali Weinerv, Globes biomed reporter. "In 2007, a new drug was released on the market - quite an unusual event, a company was issued abroad with a value of 330 million dollars and large and valued companies entered the Tel Aviv Stock Exchange," says Weinerev. "The industry has matured and maybe 2007 was the year of maturation."
Among the major biomed IPOs mentioned by Vinerv are Bioline, which raised over 2007 million dollars in early 50, Itamar Medical, which raised 25 million dollars, and IDB and Teva, which listed Clal Industrial Biotechnology at a value of 250 million dollars. Other names from the field that have seen the stock market in the past year: Mazur, Brainsway, Ciallo, Alotex, Avogen, Procogenia, Intercure and Excellence. The Israeli market saw two prominent IPOs abroad this year: that of Rosetta on Nasdaq and that of Protlix on the Amex exchange (according to a value of 330 million dollars) and also that of Madgenix which raised 8.6 million dollars on AIM. Other numbers that made the year: Madingo which raised $27 million, Angioscor which raised $30 million, and the exits of Rimon Medical ($80 million), Nass which was sold for $75 million, Viroscience which was sold for $16.5 million.
Among the successes far from the stock market or the funds, in 2007 could be seen those of Naorim, which closed a marketing agreement with Lundbeck, Contifi, which signed an agreement with a large American company, and Enzimotech, which recorded record sales of tens of millions of dollars.
And it is impossible to talk about the successes of the Israeli biomed without mentioning that of the Kamada company, which is traded on the stock exchange in Tel Aviv. At the end of March 2008, the company announced that its flagship product, an infusion for the treatment of hereditary protein deficiency (which is a permanent treatment for patients with hereditary edema), passed the third stage of the clinical trials, according to the interim report summarizing the trial results, which means that it is now open to Kamada The way to submit a registration file to the American FDA. Kamada expects to complete the process of obtaining FDA approval and begin sales of the product during 2009. To understand why the entire industry was jubilant and happy, one only has to recall the failure of Crix, which had to bury the drug it developed for kidney disease, after it failed in the third phase of clinical trials, the company XTL, which failed in jaundice trials , as well as the companies Obcure, Yes-Fate and Apix.
"What might have seemed to have happened in 2007 but did not actually happen is a real entry of international companies into Israel," says Vinerev. "Although the international pharmaceutical and equipment companies are here as investors, as company acquirers, as distributors and as an arena for clinical trials, they still do not come here to establish activity centers in the style of Intel in Haifa. The only bright spot here is that in the meantime R&D centers of international companies are being established in Israel with the purchase of young companies by large companies".
