The Meytav Newsletter
This is a special issue of the Meytav Newsletter
monthly issues mean that
a whole year has passed since we established this publication. Since this is a
“mirror” of the Meytav incubat
or, and since numbers speak louder than words,
we would like to detail a short list of figures that gives you a better sense of
where we are now, after a year of activity since the first issue, and 18 months
since the privatization took place:
Meytav Portfolio Companies (including current OCS approvals)
Meytav Management Team Members
Active Advisory and Screening Committee Members
Percent of Success in OCS Screening Committees
Unique Infrastructure Units Operated (Central
Lab., Engineering Unit,
Satellite Office in Herzelia)
($) Funding package for each Meytav company.
A few words from Zvika, the CEO of Meytav:
” I would like to take this opportunity to thank all of you, for the support we have
received from y
ou since we started working together. I have no doubt that the
success in absorbing the highly promising companies within Meytav is also
attributable to the advisors and partners we are working with. I wish us all many
more fruitful and successful years”
And to other issues;
On the 4
Meytav hosted a visit by Rina Pridor, director of the incubator program
and her team. All companies delivered a presentation regarding their activities
and current status, which were followed by a round table. CEO’s and oth
members of the teams raised issues and concerns to the OCS representatives. It
is hard to say that all problems were solved, but the OCS representatives were
impressed by the growth of the incubator and the variety of companies.
Some encouraging news
in terms of the life science sector: VC financing in the
life sciences, here in Israel, is back on track
according to MoneyTree (covering
the VC industry in Israel since 1997) the past quarter (Q3/2004) was especially
beneficial for the VC industry in g
eneral: at least $347 million was raised by high
tech companies in the third quarter of 2004. This represents a 6% increase over
the previous quarter ($326 million) and a whopping 83% over the same quarter
last year ($190 million).
So far 2004 has registe
red at least $927 million in capital
raised while all of 2003 saw only $768 million raised
Out of this figure, The Life Sciences sector moved up to second place between
all sectors with 18% of the quarter’s total monetary investments with $63 million,
compared to last quarter’s $44 million. Both the Biotechnology and Medical
Devices fields each had 9% of the quarter’s total investments, $32 million and
$31 million respectively; however, 16 medical device companies received
funding while only 6 biotech
nology companies did.
And, since we need to keep the “big picture” in mind
here is the VC section
from Burrill and Co.’s quarterly newsletter. Burrill not only manages close to $ 1
B in funds, but is a trusted and established strategic and partnerin
focusing ONLY on life sciences
so they are well connected to the numbers:
Venture capital accounted for $815 million in investments this quarter (Q2/2004),
compared to nearly $1.4 billion in Q1 04.
Selected venture financi
ngs during Q2 04:
Amount Raised ($USD, M)
Corus Pharma Inc.
ARYx Therapeutics Inc.
Idun Pharmaceuticals Inc.
M & A and Alliances
M&A activity in Q2 04 was robus
t with the announcement of more than 20
transactions totalling $67 billion. In a huge pharma/pharma deal, Aventis S.A.
accepted a sweetened takeover offer from Sanofi
Synthelabo S.A. valued at
. Approved by the European Commission, the deal co
complementary nature of the combined group's existing product portfolio. Sanofi
Aventis brings together 94 NCE's and vaccines in development from Aventis and
56 from Sanofi. The deal also gives Sanofi a significant number of technology
ips that Aventis has with other companies.
Belgium's UCB S.A., a chemicals and pharmaceuticals maker, agreed to pay
$2.7 billion for British biotech company Celltech Group PLC, a merger which will
create Europe's largest biotechnology company and the fif
th largest worldwide.
"Pharma's reliance on biotech companies to fill their pipelines continues
unabated," commented Burrill.
Selected M&A transactions announced during Q2 2004:
Est. Value (USD, $M)
Celltech Group plc
Atrix Laboratories Inc.
Bradley Pharmaceuticals Inc.
MJ Research Inc.
Rad Laboratories Inc.
Chrysalis BioTechnology Inc.
And, just so we will not get “dazzled” with all the millions of dollars flying all over,
here is a take home message Burrill offers (
the 5 P’s
of Biotech investm
Whenever the volatile biotech market rallies, there is always some momentum
trading which may or may not reflect a company’s true value over the long run.
Investors who wish to avoid being caught up in the tide of enthusiasm are
advised to remember a few pointers:
is what investors need to remember most. This is not a segment in
which one makes a killing overnight. The return can take three to five years to
materialize…maybe a little less and maybe a little more. Bio
tech’s wild ride is not
for the faint of heart.
is a must. Mix up the innovative neophytes with the more
seasoned pros and vary your therapeutic markets and hotshot technologies.
are biotech’s jewels and while it is difficult t
o predict a promising
compound’s ultimate success, it pays to keep track of clinical trial progress and
(with larger pharma or biotech companies) has never been more
important to the survival of biotech. We are seeing increa
sed activity in this area
and it’s good to know how these collaborations are working out.
Probability or probably sustainability
is key to any company’s success. If
there isn’t a strong business model or products are failing early in clinical trials,
ay have to rethink your choice.
And with this optimistic note, until the next time…
Looking forward to
Alec and Yehuda
Meytav Technological Incubator
Documents and Settings
Elutex and Meytav