State of Israel Ministry of Industry, Trade & Labor

Investment Promotion Center

Invest In IsraelWhere Breakthroughs Happen

Creating Synergies in Life SciencesCreating Synergies in Life Sciences

Main Economic IndicatorsMain Economic Indicators

2008200720062005Criteria

199.4164.1144.0133.2GDP (current prices in $B)

4.0%5.4%5.2%5.1%GDP Real Growth Rate (%)

$28,473$27,395$24,271$23,206

GDP per Capita

(PPP adjusted)

GDP per Capita Growth Rate

Sources: Bank of Israel, Ministry of Finance, International Monetary Fund

2.1%3.5%3.3%3.3%GDP per Capita Growth Rate

(%, Current prices)

80.4

(40.3%)

71.2

(43.4%)

62.6

(43.5%)

57.2

(43.0%)

Exports (Goods & Services in $B)

(As Percentage of GDP)

84.1

(42.2%)

74.0

(45.1%)

62.2

(43.2%)

57.5

(43.2%)

Imports (Goods & Services in $B)

(As Percentage of GDP)

6.1%7.3%8.4%9.0%Unemployment Rate (%)

2

Highlights

� Highest civilian R&D expenditure/GDP (4.7% of GDP)

� Largest number of scientists per capita in the world and dedicates one third of its research budget to the Life Sciences.

� First in the world for Medical Device Patents per Capita, Fourth for Bio-Pharma Patents.

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Fourth for Bio-Pharma Patents.

� Fourth in investments in Biotechnology/GDP

� Rated 3rd worldwide in Medical Device area

� More than 18 drugs in advanced clinical trials (3rd in Europe)

Israel’s Competitive Edge – IMD World Report 2008

Country Rank ����

BUSINESS EXPENDITURE ON R&D

TOTAL EXPENDITURE ON R&DAS A PRECENTAGE OF GDP

AVAILABILITY OF QUALIFIED ENGINEERS

KNOWLEDGE TRANSFER BETWEEN

2nd

Sweden

Sweden

Israel

3rd

Japan

Finland

Chile

4th

Korea

Japan

Taiwan

1st

Israel

Israel

Singapore

U.S.AKNOWLEDGE TRANSFER BETWEEN INDUSTRY AND ACADEMIA

VENTURE CAPITAL AVAILABILITY

Israel

Hong Kong

Switzerland

Israel

Source: IMD World Competitiveness Yearbook - 2008

Singapore

U.S.A

INFORMATION TECHNOLOGY SKILLS Singapore Israel

Singapore

Sweden U.S.A

U.S.A

Israel Ranks 20

RESILIENCE OF THE ECONOMY Australia Denmark Switzerland Israel

4

Acquisitions of Israeli Life Science CompaniesDateSectorCompanyAmount($M)Acquirer

2009Medical DevicesVentor325Medtronic

2009Medical TechnologyOptonol Ltd.180Alcon Inc.

2009Laboratory Information

Management

Starlims

Technologies

123Abbott

Laboratories

2008BiotechnologyOmrix447Johnson &

Johnson

2008Medical DevicesMediGuide300St. Jude

2008DentalAlphaBioTec95Nobel BioCare

2007PharmaceuticalsTaro454Sun Pharma

2007Medical DevicesRamon80Boston Scientific

2006Medical DevicesDisc-O-Tech220Kyphon

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Foreign Companies Invested in Israel - Some Examples

US

• Perrigo

• GE Healthcare

• Johnson & Johnson

• Dentsply

• Stryker

• Boston Scientific

• Microsoft

• AOL Time Warner

Europe

• Philips Medical

• Ferring

• Merck-Serrono

• British Telecom

• SAP

• Alcatel

• Siemens

• Cable & Wireless

Asia

• Sun Pharmaceutical

• Scigen

• Sony

• Toyo Ink

• Fuji

• Honda

• Sumitomo Trading

• Nomura

• Intel

• IBM

• Cisco Systems

• Lucent

• 3Com

• Hewlett Packard

• Motorola

• Sun Microsystems

• Google

• Deutsche Telekom

• Telecom Italia

• Generali

• Nestle

• L’Oreal

• Danone

• Unilever

• Vilmorin

• Veolia

• Samsung Electronics

• Daewoo

• LG Group

• Hyundai

• Acer Computers

• Macronix

• Winbond

• Hutchison Telecomm

• Jain Irrigation

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Israel Life Sciences Cluster

SuccessfulLife science Companies

Availability ofHuman Capital

ExistingTechnology

Infrastructure

University Medical, Science

Students and Postgraduates

DefenseTechnology

Spillover

CorporateR&D

LeadingAcademic

Institutions & Research

Seasoned VC Community

Immigration

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Capital

Global Life Science

Firms Veterans

Technological Incubators

Strong Government

Support

Innovative &Entrepreneurial

Culture

Hospitals and Medical Centers

Israel’s Life Sciences IndustryBlockbuster Launched Products

ProductProductProductProduct IndicationIndicationIndicationIndication Company Company Company Company LicenseeLicenseeLicenseeLicensee

RevenuesRevenuesRevenuesRevenues2008200820082008

Academic Academic Academic Academic InstituteInstituteInstituteInstitute

InventorInventorInventorInventor

CopaxoneCopaxoneCopaxoneCopaxone((((glatiramer acetate)glatiramer acetate)glatiramer acetate)glatiramer acetate)

Multiple Multiple Multiple Multiple SclerosisSclerosisSclerosisSclerosis

TevaTevaTevaTeva $$$$M M M M 2222,,,,260260260260 Weizmann Weizmann Weizmann Weizmann InstituteInstituteInstituteInstitute

Michael SelaMichael SelaMichael SelaMichael Sela

RebifRebifRebifRebif((((interferon betainterferon betainterferon betainterferon beta----1111a) a) a) a)

Multiple Multiple Multiple Multiple SclerosisSclerosisSclerosisSclerosis

MerckMerckMerckMerck----SeronoSeronoSeronoSerono €€€€M M M M 1111,,,,331331331331 Weizmann Weizmann Weizmann Weizmann InstituteInstituteInstituteInstitute

Michel RevelMichel RevelMichel RevelMichel Revel

ExelonExelonExelonExelon((((rivastigmine tartrate)rivastigmine tartrate)rivastigmine tartrate)rivastigmine tartrate)

Alzheimer’sAlzheimer’sAlzheimer’sAlzheimer’s NovartisNovartisNovartisNovartis $$$$M M M M 815815815815 Hebrew Hebrew Hebrew Hebrew UniversityUniversityUniversityUniversity

Marta RosinMarta RosinMarta RosinMarta Rosin

Doxil / CaelyxDoxil / CaelyxDoxil / CaelyxDoxil / Caelyx CancerCancerCancerCancer J&JJ&JJ&JJ&J Hebrew Hebrew Hebrew Hebrew UniversityUniversityUniversityUniversity

Alberto Alberto Alberto Alberto GabizonGabizonGabizonGabizon

Israel’s Life Sciences Industry

Blockbuster Launched Products

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((((Doxorubicin liposome)Doxorubicin liposome)Doxorubicin liposome)Doxorubicin liposome) ScheringScheringScheringSchering---- PloughPloughPloughPlough $$$$M M M M 430430430430 UniversityUniversityUniversityUniversityHadassah Hadassah Hadassah Hadassah HospitalHospitalHospitalHospital

GabizonGabizonGabizonGabizon

AzilectAzilectAzilectAzilect((((rasagiline )rasagiline )rasagiline )rasagiline )

ParkinsonParkinsonParkinsonParkinson TevaTevaTevaTeva $$$$M M M M 175175175175Launched July Launched July Launched July Launched July

2006200620062006

TechnionTechnionTechnionTechnion Moussa Moussa Moussa Moussa YoudimYoudimYoudimYoudim

ErbituxErbituxErbituxErbitux CancerCancerCancerCancer MerckMerckMerckMerck----SeronoSeronoSeronoSeronoBristolBristolBristolBristol----Meyers Meyers Meyers Meyers

Squibb Squibb Squibb Squibb

€€€€M M M M 565 565 565 565 Launched Launched Launched Launched 07070707----2008200820082008

M$M$M$M$ 749749749749

Weizmann Weizmann Weizmann Weizmann InstituteInstituteInstituteInstitute

Michael Michael Michael Michael SelaSelaSelaSela

Israel’s Life Sciences Industry – Sectors

Medical Device 56%Biotechnology 20%

Pharmaceutical 12%

Agro Biotech 3%

Medical IT 5% Services 2% Other, 2%

Companies’ Developmental Stage

9Source: ILSI Database – 2009

Revenue 39%

Pre-Clinical 12%

Clinical 18%

Seed 26%

Other 5%

Companies’ Developmental Stage

Main Medical Fields

0

10

20

30

40

50

60

70

80

90

0

Source: ILSI Database – 2009 10

Medical Device Patents per Million Capita 2007

8

10

12

14

16

18

Source: www.uspto.gov, Analysis: ILSI ©

0

2

4

6

8

United States

Japan Germany United Kingdom

France Canada Israel South Korea

Taiwan

11

BioPharma Patents per Million Capita - 2007

Source: www.uspto.gov, Analysis: ILSI © 12

Major 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

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� Cancer - Cell Therapy, Monoclonal Antibodies, Small

Molecules, Image Guided Technologies

� Inflammation & Autoimmunity

� Cardiovascular

� Infectious diseases, Vaccines

Israeli Biotechnology Innovations

� 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 microRNA-based diagnostics and therapeutics

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� BrainStorm Cell Therapeutics uses autologous bone marrow derived adult stem cells to combat Parkinson Disease.

� Cell Cure employs human embryonic stem cell technology for Parkinson.

� And …Biocancell(Gene therapy), BiondVax (Intra nasal vaccines for several flu strains), Compugen (threapeutic &diagnostic drug discovery)

Israeli Medical Devices Breakthroughs

Insightec - Image Guided HIFUS (High Intensity Focused Ultrasound)

Given Imaging - 1st ingestible video camera used to view the small intestine and diagnose disorders

Medinol - pioneered the development of closed cell

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

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

Israeli Medical Devices Breakthroughs (II)

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

Galil Medical - Cryotherapy for minimally invasive

targeted ablation

Insightec - MRI guided non-invasive surgical procedure

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3D Endoscope • 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 •

And many more…

Stem Cells

• Israel is one of the world centers for stem cells

research and technology development.

• The Jewish religion does not hinder stem cell research

– unlike in other cultures - 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.

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Summary

� Israel is a center of innovation and technological

excellence

� Israel is a source for profit driving innovation in the fields

of Medical Technology and Bio-Pharma

� Foreign companies can conduct cutting edge research in Israel cost effectively .

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� Favourable government support programs: Investment grants, Tax benefits and R&D grants

� Invest in Israel’s main purpose is to assist investors

establish a presence in Israel. Please contact us.

State of Israel Ministry of Industry, Trade & Labor

Investment Promotion Center

5 Bank Israel St., Kiryat Ben-Gurion Jerusalem, Israel

www.investinisrael.gov.il investinisrael@moital.gov.il

Tel: +972-2-6662607 Fax:+972-2-6662983