Posted tagged ‘Investing’

An Overview of Investing in Israeli Biotech

January 23, 2014

Investment in Israel’s biotechnology and life sciences industries is likely to present attractive options well into the future. The small country is distinguished by a highly educated and innovative entrepreneurial community, supported by numerous high-technology university programs and extensive government backing. Today’s Israeli biotech companies are making strides in multiple areas with products focused on diagnosis and treatment, including equipment, appliances for orthopedic conditions, diagnostic kits, and biologically and chemically based pharmaceuticals.

Figures from 2011 showed that nearly 6.5 percent of the country’s population aged 18 to 64 is composed of entrepreneurs. Additionally, Israel has the highest expenditures on research and development as a portion of its gross domestic product than any other nation, as well as the most biotech start-up corporations per capita. The country also holds the most patents for medical devices per capita and has a proportionally large percentage of its population working in the sciences. A number of entrepreneurs in Israel possess multi-disciplinary talents, and they thus are able to combine insights from several fields into product creation.

Israeli banks offer the same full range of services as those in the United States, although corporate tax rates traditionally have been high. Newer legislation has attempted to create tax incentives for foreign and high-tech investors.

Israel-based experts have described the country’s recent emergence into a period of maturity as a high-tech innovator, and have noted its high rate of growth throughout these industries. The country’s heavy investment of time and talent into the pharmaceutical and biotech fields over the past decade has begun to pay off, with the number of companies involved in advanced-stage clinical trials double that of five years ago.

Venture Capitalists See Massive Opportunity in Biotech Sector

October 8, 2013

Lindsay Rosenwald co-manages an investpment partnership that specializes in biotechnology investment. In addition to his professional obligations, Lindsay Rosenwald contributes to a variety of philanthropic organizations through the Rosenwald Foundation.

BiotechInvestment in the biotechnology sector has surged in 2013, following more than a dozen initial public offerings. In addition to the funds raised through these IPOs, experts report that venture capitalists poured $1.3 billion into the industry in the second quarter. A 41 percent increase over the first quarter, the sum encompasses more than 100 deals. Furthermore, funding for early-stage start-ups doubled to $328 million in the second quarter, demonstrating an enthusiasm for the industry that has not existed since before the financial crisis.

Unlike pharmaceutical companies, which typically allocate sales profits from drugs on the market to fund new drug development, biotechnology firms generally operate at a loss during their extensive research and development phases. Biotech firms have produced some of the most innovative therapies on the market; however, as a result of their business model, they require increased investor funds.