TEL AVIV, Israel--(BUSINESS WIRE)--The Israeli life sciences industry continues to thrive with a growing number of Israeli life sciences companies established every year. Approximately 1,450 life sciences companies are active now in Israel, employing more than 85,000 people, an increase of approximately 10,000 employees compared to 2017.
As many as 1,307 life sciences companies were established in Israel in the last decade (2008-2017), and half of them are still active. A record $1.2 billion flowed into the industry in 2017, representing an increase of 40% over the prior year and an increase of approximately 400% compared to a decade ago.
These findings are presented in the IATI's 2018 Israeli Life Sciences Report, which was published today. Israel Advanced Technology Industries (IATI) is the umbrella organization of the hi-tech and life sciences industry in Israel (www.iati.co.il). This in-depth report is released ahead of the 2018 MIXiii Biomed, May 15-17 in Tel Aviv.
The report shows that the trend of increase in the share of investments going to later stage companies, those with initial revenues and revenue growth, continues in 2017, as well as an increase in the number of deals.
The report is available for free download here: https://tinyurl.com/y7srsta2
Yaky Yanay, Co-Chair IATI, Life science and CO-CEO of Pluristem Therapeutics commented, “We very pleased to see a continued increase in the number of Israeli life sciences companies, as they mature their pipelines. The Israeli life sciences industry has become a major employer and is contributing significantly to our consistent GDP growth. IATI is proud to serve as the umbrella organization of this inspiring industry. In the coming few years, there may be a huge opportunity for our life sciences industry to become a global leader.”
Of the total $1.2 billion that was invested in life sciences companies in 2017, as much as $476 million (40%) came from local investors. This is a significant increase relative to previous years - $323 million in 2016 and $267 million in 2015. According to the report, interest in the Israeli life sciences sector by both local and foreign investors is growing for the fifth consecutive year.
Israeli VC investments in life sciences companies in 2017 was $141 million, which represents 12% of the total investments in Israeli life sciences companies.
Digital Health as a National Growth Engine
In March 2018, the Government approved a National Program for Promoting the Digital Health Field, at a cost of $264 million over five years. This is part of the plan to promote medical research and innovation transparently, thus placing the Israeli health system at the forefront of world medical innovation. The plan is also expected to attract global companies and encourage them to open R&D centers in Israel. By doing that, the plan not only contributes to Israeli startups in the life sciences industry, but also to the increase of Israel's global presence.
IATI CEO & President Karin Mayer Rubinstein: "The Israeli Life Science Industry experiencing accelerated growth and is considered a significant sector in the Israeli economy. The Government's decision from last March to set a national program for promoting the Digital Health sector, is another positive step forward. At the same time, we are facing a significant national challenge of bringing Life Science Multi-national companies over to Israel, and as Israel's Umbrella Organization we work, in cooperation with the government, to bring Life Science companies, particularly Pharma companies".