The emerging Israeli biomedical industry Be­club, Karolinska Institutet

crunchkingofprussiaBiotechnology

Dec 6, 2012 (4 years and 11 months ago)

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The emerging Israeli biomedical
industry

Be
-
club,
Karolinska

Institutet

March 3
rd
, 2010

Stockholm

RAD BioMed is Israel’s Leading Life Sciences Incubator, with a Proven
Strategy to Turn Seed and Pre
-
seed Companies into Winners




Target:

Novel solutions to unmet clinical needs



Process:

Financing based on milestones achieved at rising valuations,


deep management support



Objective:

Viable, self
-
sustaining companies


not quick exits

RAD
BioMed

Brings an Unparalleled Array

of Resources to its Mission




Innovation:

Innovations sourced from Israel’s universities, among the world’s


life science pacesetters



Partnership:

Extensive network of investors in Israel, the U.S., Europe



Management:

An executive team with extensive experience in the biomed


industry



Finance:

Part of the RAD Group one of Israel’s leading technology


groups,
owned by Yehuda Zisapel, founder of the RAD Group.


Our goal is simple: to transform
ideas into business

Quality of Scientific Institutions

An R&D Powerhouse

Israel Gets Results

1

United States

2

Switzerland

3
Israel

4

Canada

5

Belgium

6

Germany

7

United Kingdom

8

Australia

9

Finland

10

Netherlands

11

Sweden

12

Denmark

13

Singapore

14

Korea, Rep.

15

Japan

16

France

17

Ireland

18

Austria

19

New Zealand

20

Malaysia

6.3

6.2

5.9

5.8

5.8

5.8

5.7

5.7

5.7

5.7

5.7

5.6

5.6

5.5

5.4

5.4

5.3

5.3

5.1

5.1

Country Spending on R&D (% GDP)

An R&D Powerhouse

Israel Gets Results

1

Israel

2

Sweden

3

Korea, Rep.

4

Finland

5

Japan

6

Switzerland

7

Iceland

8

Austria

9

Denmark

10

Germany

4.8

3.5

3.5

3.4

3.4

2.9

2.7

2.6

2.5

2.5

Israel Gets
Results

1

Taiwan

2

Japan

3

United States

4
Israel

5

Korea, Rep.

6

Finland

7

Switzerland

8

Sweden

9

Germany

10

Canada

11

Singapore

12

Iceland

13

Netherlands

14

Denmark

15

Australia

16

Norway

17

Austria

18

France

19

Luxembourg

20

United Kingdom

Israel consistently ranks among the top five countries in patents per capita.
It is also a leader in biotechnology and medical device patents.

279.3

263.3

250.9

166.6

156.0

155.5

148.3

115.2

108.1

102.2


88.7


85.8


80.5


71.1


61.5


58.1


55.1


51.1


50.8


50.7

Patents per Capita

Best
-
Selling Drugs Developed in Israel

Israel


A
Leader in Innovative Pharmaceuticals

*
2005


Sales

$
2.6
B

$
1.95
B

$
815
M

$
500
M*



Treatment


MS

MS

Alzheimer’s

Cancer



Product

Copaxone

Rebif

Exelon

Doxil


Israel


A Leader in Medical Device Innovation

Israeli Medical Device Success Stories




GE Healthcare in Israel was responsible for bringing to market the


world’s first miniaturized portable cardiac ultrasound system.



The Philips Brilliance CT scanner, developed in Israel, takes a


comprehensive picture of a patient in seconds instead of


minute
-

a critical difference in the emergency room, where


every second counts.



Medinol

pioneered the development of closed cell stent design


and its products are distributed by Johnson & Johnson.



Given Imaging developed the first ingestible camera for


diagnosing ailments of the digestive system.

Israel


An M&A
Target



Feb.
2009
Medtronic Inc buys
Ventor

Technologies


(
trans
-
catheter
heart valve technologies) for $
325
million



Dec.
2008
Johnson & Johnson buys
Omrix

(
bio
-
surgical


sealants for the prevention of bleeding)

for $
465
million



Dec.
2008
St. Jude Medical buys
Mediguide

(technology


for minimally invasive cardiac surgery) for $
300
million.



March
2008
GE Medical buys
VersaMed

(portable critical
-



care ventilators for respiratory care) for $
42
million.

“Some large U.S. device companies now say that one
-
third to one half of
the new companies and devices they look at either come from Israel or
originated there,”

In Vivo: The Business & Medicine Report, October
2008
.

The Incubator Model


Israeli incubators are unique:




Owned by private sector investors



Geared exclusively to technology



Register each company independently



Employ rigid acceptance procedures to ensure a high success rate



Every year
75
-

85
start
-
ups are established in the incubators,
about
90
% of them complete the incubator term

Geographic Localization


24
incubators

Lowering the Risk

Benefits of OCS support

Israel’s
Office of the Chief Scientist Acts as an Engine for Innovation



Conducts
rigorous due diligence and other tests prior before approving funding


an added source of validation for new technologies


Financing
is fast, accessible


average approval time is
3
-
4
months from application


Funding
doesn’t preclude the recipient company being sold or going
public, or
moving operations abroad


Operates
multiple programs which offer diverse funding options: R&D fund
(Industrial research),
Tnufa

(patents, prototype development),
Heznek

(matching
grants for seed companies),
Magnet

(aid for generic R&D),
Nofar

(biotechnology)



“Not only does the grant/loan provide direct funds to the developing
company, it also attracts new investors, often foreign investors.”

DavidanthonyVC.com

Lowering the Risk

Terms of OCS support

The Israeli government’s Office of the Chief Scientist (OCS) provides
financial backing for incubator companies


Funding of up to
$
750
,
000
for two to three years


Government support may cover up to
85
% of project as a non
-
recourse
loan


The OCS conducts its own evaluations of the technology and market
potential of applicant companies on ongoing basis


an extra layer of
validation


Payback required only in event of project’s success

The Incubator Focus on Biomedical Companies

Proven track record for incubator graduates:



Sightline bought by Stryker for $
150
million,



UriDent

bought by
Dentsply

International for $
100
million,



Boston Scientific acquired
Remon

Medical Technologies for undisclosed sum


Two thirds of life science start
-
ups companies still in operation after
graduating from incubator (
2002
-
2006
period)


Investment in incubator graduates
-

$
1.5
billion end of
2006


Medical Device
55
%

Biotechnology

20
%


Pharmaceutical
12
%

Medical
4
%

AGBiotech

3
%


Service
2
%

Other
4
%

The Incubator’s Contribution to the Israeli LS Industry


The Incubators are Israel’s main source of seed

Investment for life science start
-
ups


Percent of
L.S. companies, by their year of formation, financed to

Date by Israeli or
Foreign
VCs, or only by Incubators


Government Vs Private Funding

Government Investments VS. Private Funds Raised in Incubator Companies
1991
-
2008


Incubator Success Stories

SIGHTLINE

OMNIVEE

ProActivity

The RAD Group

The RAD
Group was founded in
1984
by Yehuda and Zohar Zisapel.




A family of
14
independent companies that develop, manufacture and market


solutions for networking and telecommunications.



Annual revenues of $
900
million (
2009
).



A unique business philosophy: Each RAD Group company operates


autonomously with strategic direction coming from the group.



Cooperation


Group companies share technology, sales channels and market


information.



Five RAD Group companies are traded on the
Nasdaq

Stock Market; the others


are privately held by the Group's founders and venture capital firms.

The RAD Group

No. of employees =
3
,
750

Group sales in
2008
= $
900
Million

Unique Access

Solutions

Established:
1981

Group Distributor in
Israel

IP Acceleration

Established:
2005

Mobile TV

Established:
2006



Founded in
1984
by Yehuda and Zohar
Zisapel




13
Independent Companies


Coordinated Strategy




Shared Logistics & Marketing Channels




Five public Companies on NASDAQ

Hi Fidelity Audio

Established:
2005

Ultra Wideband
Communications

Established:
2001

Storage Transport over
SDH, Established:
2000

Storage Area
Networks

Established:
2000

Wireless Local Loop

Established:
1997

Intelligent Application
Switching

Established:
1997

Broadband Wireless

Established:
1996

IP Voice and Video
Conferencing

Established:
1992

Network Test

Solutions

Established:
1991

Hi
-
end NICs for Servers

Established:
1987

The RAD Group Gets Results

The RAD Group has Five Companies Traded on the
Nasdaq

with a Combined
Market Cap of $
788
Million





Silicom

(SILC)
-

High end adapters for servers and security appliances,



Radcom

(RDCM)
-

Monitoring, analysis and troubleshooting systems for


next generation networks



RADVISION
(RVSN)
-

Voice, video and data communications infrastructure


and developer tools



Ceragon

Networks
(CRNT)
-

Wireless broadband



Radware

(RDWR)
-

Intelligent application
switching


“The Zisapel brothers have spun off
23
telecom
-
related startups. Seven were
sold for a total of more than $
1
billion. Another six went public on
Nasdaq
. All
are based inside RAD's
1.5
million
-
square
-
foot campus, brimming with more
than
2
,
500
employees.”


Business
2.0
magazine




.

The RAD Group Gets Results

The RAD Group has Completed Eight Exits in
12
Years




Lannet

-

sold to Madge Networks (
1995
), Lucent (
1998
)



Armon

-

sold to Bay Networks (
1996
)



Radnet

-

sold to Siemens AG and
Newbridge

(
1997
)



Radlinx

-

sold to
VocalTec

(
1998
)



Radwiz

-

sold to
Terayon

Communications (
1999
)



Radlan

-

sold to Marvell (
2003
)



RND

-

sold to USR Electronics (
2003
)



RiT

Technologies

-

sold to
Stis

Coman

(
2008
)


The RAD
Group’s
Pharma

Activity

Neurim

Pharmaceuticals

A drug discovery and development company founded in
1991
by Nava and
Yehuda
Zisapel
.

Its first approved drug,
Circadin
, prolonged
-
release melatonin for insomnia, has
been commercially available in the European Union since October
2007


Partners



Teva

Pharmaceuticals

--

Israel rights for
Circadin

and is a strategic partner.




H.
Lundbeck

A/S

--

rights for
Circadin

in most European markets



Nycomed

--

marketing
Circadin

in Belgium, Netherlands, Austria, Greece, the


Baltic states, Norway, Sweden, Finland, Denmark, Iceland, Switzerland,


Luxembourg and Russia
.


Strong intellectual property position
--

More than
60
patents granted,

10
more pending


Three pipeline products that are new chemical entities (NCEs)

and protected by substance patents

RAD
BioMed


RAD
BioMed

is applying RAD Group’s proven model in
communications technology to the life sciences.


Israel’s most prestigious incubator for life sciences and healthcare
companies, with a focus on medical devices


Over half of companies are seeded by RAD
BioMed

based on
concepts proposed by outside academics


Over
80
% of portfolio companies won post
-
incubation financing


The only life science incubator located in Tel Aviv, the center of Israel’s


Silicon Valley

“The
Rad

BioMed

team is extremely capable in every important way
--

the science, the technology and the business. More than that, they are
truly enthusiastic about our project, and that makes a great foundation
for teamwork.”


Danny Brull, CEO,
BrainWatch


The RAD
BioMed

Edge


Creating Value



Seeks out groundbreaking life science and medical device technologies


and projects using its extensive network and contacts



Works with academics to define clinical need/market for new


technologies, research



Quality deal flow


More than
250
projects screened annually, about


5
are approved



Investment of up to $
750
,
000
per

company over
2
-
3
years, leveraging


the government aid


Co
-
entrepreneurship/Product positioning


determining what

needs to be done, when and how

The RAD
BioMed

Edge



Extensive Global Reach

Leader in creating international industry collaborations:



Founded Israeli German life sciences committee for R&D collaboration



Full Member of the Council of European Bioregions


Connections with opinion leaders:

Strong relationships with top
-
level regulatory and government officials in
healthcare and life sciences around the world

The RAD
BioMed

Edge



Building Companies



Limit companies to small, integral teams of
2
-
5
people, extensive


outsourcing



Employ “hands
-
on” business and technical guidance



Focus on portfolio companies’ business development at earliest stages



Help entrepreneurs to create effective boards of directors, advisers

RAD
BioMed

Operations



Seed and Follow Up Financing.



Over
300
square meters of laboratory facilities.



Hands on managerial support



Premier Legal Services.



Technical and logistical support from the RAD Group.



Office, accounting and administrative Services
.

The RAD Advantage


Task Oriented Management


Idan Tamir, president and CEO


Ph.D., chemical immunology, Weizmann Institute. James F. Murray
Pediatric and Leukemia Society Fellow, National Jewish Medical and
Research Center, Denver. Headed the Bioassay department of the leading
Israeli biotech company QBI and director of their chemistry department.



Simone Botti, vice president, business development


Ph. D., chemistry, Weizmann Institute. NIH

ADDP fellow, Northwest University
Medical School, Chicago. Served as senior director, business development,
EMEA, for
Cogenics
, and was managing partner,
Altiora

Ventures,
European
-
Israeli technology and life sciences investment bank.



Eyal Orion, vice president, operations


MD,
Technion

-

Israel Institute of Technology, internship at the Tel Aviv
Sourasky

Medical Center, MBA, University of Tel Aviv, specializing in strategy
and finance. Previously, served as RAD's entrepreneur in
-
residence,
responsible for reviewing and launching new projects, and founded
Vascular Graft Solutions Ltd., an incubator portfolio company.

Efficient Cord Blood

Collection Devices

Functional Contrast

Agents for
Neurodegenerative Diseases

Drug
-
delivery Devices

for
Injectable

Therapeutics

Atherosclerotic Plaque

Removal Solutions


Novel Enzymes for the

Food Industry

Charged
Liposomes

for

targeted IBD drug delivery

Biocatalytic

Solutions for

Bio
-
Diesel Production

EyeMister
™ for application

of
ophtalmic

medications

Targeted Therapy for

Rheumatoid Arthritis


Disease Diagnosis by Immune
-
Response Pattern Analysis

Novel Gene

Therapy for HIV

Bioimpedance

guidance systems

for minimally invasive procedure

Neural Stimulation Device

for Tinnitus Treatment

Devices for Prevention

of Graft Failure

Liposomal Lubricants for
Osteoarthritis treatment

Oral Interface

for CPAP

Portfolio Companies


Success Stories

News from existing and/or graduate companies


SteadyMed

closes $
2
million funding round with Samson Venture Partners, LLC,
the investment management arm of Becker & Associates Consulting
(Jan.
2009
)

Simbionix

completes Series C round with River Cities Capital Funds
(Oct.
2008
)


Proterec

raises $
1.2
million from
NRVision

Ventures
(Sept.
2008
)

Agazyme

places first in Israel,
11
th in Europe in EU’s
Eurostars

program, wins
400
,
000
-
euro grant
(Sept.
2008
)



The RAD
BioMed

Edge


Become a Part

RAD
BioMed

is offering opportunities for

financial or strategic partnerships


For Investors:

RAD Biomed combines access to high growth companies with
a low risk factor
--

80
% of RAD start
-
ups win post
-
incubator financing.









For Strategic Partners:

RAD Biomed can become integral part of your
innovation engine


15
existing portfolio companies,
250
candidates
screened annually


For TTOs:

RAD Biomed is looking for outstanding IP to nurture into the next
leading global life science companies

RAD
BioMed

is seeking to raise a targeted fund

for follow
-
on co
-
investing in its portfolio companies

Thank You

Dr. Simone Botti

Vice President, Business Development

Email: simone@radbiomed.com