• Extensive market research of the Israeli MedicalDevices industry• Detailed database of all 656 medical devicescompanies in Israel• 200 company profiles• Info-graphic overviewMedicalDevices:ProjectOutput
• In-depth Analysis exposing: Industry Structure & Ecosystems Strength and Opportunities The Global Context Local and International Regulation Extensive Financial & Statistic AnalysisResearchMethodology
• Wide range of professional sources: GBI (Global Business Intelligence) IVC Ernst & Young Israel Central Bureau of StatisticsResearchMethodology
GlobalMedicalDevicesMarketValueSource: Kalorama Information
IsraeliMedicalDevicesIndustryMarketSizeSource: Central Bureau of Statistics• $1.83B annual production (exports + local sales) in 2011, ofwhich $1.6B in exports, up 9% from 2010.
LeadingExportDestinations(2011)Source: Central Bureau of Statistics
IsraelintheLeadSource: IVC Research Center• Israel is considered a leading country in the field ofmedical devices worldwide: 1st in granted patents per capita 4th in absolute number of patents
Numberof IsraeliCompaniesEstablished2974195297335690501001502002503003504001960-1990 1991-1995 1996-2000 2001-2005 2006-2010 2011-2013Number of Medical Devices Companies Established in IsraelSince 1960 (not all active today)Source: IVC Research Center
IsraeliLifeScienceIndustryMedical Devices60%Pharmaceuticals& Biotechnology23%Healthcare IT8%Agro biotech3%Industrial3%Agro biotech2%Bioinformatics1%• 656 Medical Devices Companies of which:• 35 Publicly Traded• 18 Owned by Foreign Companies
TheGlobalEconomicClimate• More stringent regulatory environment poses a threat forinvestors• Payer pressures – Public and private payers for health products (i.e.:governments, hospitals etc.) are pressuring medical devicescompanies to prove that their products are significantly better thanexisting products• President Obamas health care reform – A new 2.3% excise taxbased on the sale price of certain medical devices sold in the US bythe manufacturer, producer or importer of the device• Weak economy – The global economy has not yet recovered fromthe 2008 financial down turn and the gloomy future of the Europeaneconomy has left investors very cautious
MedicalDevicesInvestmentTrends• Investments shift from small and upcoming companies tomore mature and established companies• Milestones – Conglomerates acquiring medical devicescompanies are increasingly relying on milestone payments andstructured earn-outs in order to pass some of the acquisitionrisk to the seller• Weak activity on the stock markets for Israeli medical devicescompanies
IndustryFunding• In 2011 the Israeli life science industry raised $385 million (notincluding Government funds). Over 55%, $218 million, wereinvested in the medical devices sector• The amount raised by the life sciences industry in 2011 wasbigger, in absolute numbers, than that raised in 2010, but theweight of life sciences investments decreased from 28% of allhi-tech investments in 2010 to 18% of all investments in 2011
SectorsoftheMedicalDevicesIndustrySource: Meidata22514174685538161511 9 3Number of Companies in each sectorTherapeutic DevicesMonitoring & DiagnosticsImplants and ProstheticsMedical EquipmentImagingDrug DeliveryTelemedicineN/ARoboticsMulti-sectorResearch & EducationMost companiesare in theTherapeuticDevices sector
IndustryOverview–Companies byBusiness StageSource: MeidataR&D35%Seed34%InitialRevenues26%RevenueGrowth5%Companies by Business Stage• Over 65 % of the companies have not yet reached the commercial stage and arestill in the seed or R&D stages of development
IndustryOverview–NumberofEmployeesinCompaniesSource: Meidata1-556%6-1018%11-2011%21-509%51-1003%Over 1003%Number of Employees in Israeli Medical DevicesCompanies• Over 50% of the companies are based on 5 employees or less, while only 3% haveover 100 employees
TherapeuticsSectorOverview1-51286-104411-202221-502051-1006Over 1003Therapeutic Devices Companies by Number ofEmployeesR&D78Seed70InitialRevenues63RevenueGrowth8Therapeutic Devices Companies by BusinessStageNo. of Companies Dominant Medical FieldsCompanies by BusinessStageNo. of Employeesper Company225 Cardiovascular Seed: 70 1-5: 128Public Companies Dermatology & Aesthetics R&D: 78 6-10: 4412 Orthopedics Initial Revenues: 63 11-20: 22Companies Incubated(Now or in the past)Revenue Growth: 8 21-50: 2044 51-100: 6Over 100: 3Largest medical devices sub-sector in Israel.Israeli aesthetic devices companies among leading aesthetic devices companies inthe world.
Monitoring&DiagnosticsSectorOverview1-5786-102411-201821-501750-1002Over 1003Monitoring & Diagnostics by Number of EmployeesSeed54R&D50InitialRevenues29RevenueGrowth7Monitoring & Diagnostics Companies by BusinessStageNo. of Companies Dominant Medical FieldsCompanies by BusinessStageNo. of Employeesper Company141 General Health Seed: 54 1-5: 78Public Companies Cardiovascular R&D: 50 6-10: 2410 Orthopedics Initial Revenues: 29 11-20: 18Companies Incubated(Now or in the past)Revenue Growth: 7 21-50: 1744 51-100: 2Over 100: 3Almost 75% of monitoring & diagnostics companies are still in the Seed andR&D stages.
Implants&ProstheticsSectorOverview1-5456-101211-20721-50551-1002Over 1003Implants & Prosthesis Companies by Number of EmployeesSeed29R&D26InitialRevenues13RevenueGrowth2Implants & Prosthesis Companies by Business StageNo. of Companies Dominant Medical FieldsCompanies by BusinessStageNo. of Employeesper Company74 Cardiovascular Seed: 29 1-5: 45Public Companies Orthopedics R&D: 26 6-10: 122 Oral & Dental Initial Revenues: 13 11-20: 7Companies Incubated(Now or in the past)Revenue Growth: 2 21-50: 528 51-100: 2Over 100: 3Only 2 implants & prosthetic companies have annual sales of over $10million.Of the 4 largest companies, 3 develop dental implants.
MedicalEquipmentSectorOverview1-5416-101211-201021-50351-1002Over 1001Medical Equipment Companies by Number of EmployeesInitialRevenues22Seed22R&D21RevenueGrowth3Medical Equipment Companies by Business StageNo. of Companies Dominant Medical FieldsCompanies by BusinessStageNo. of Employeesper Company68 Surgery Seed: 22 1-5: 41Public Companies General Health R&D: 21 6-10: 122 Cardiovascular Initial Revenues: 22 11-20: 10Companies Incubated(Now or in the past)Revenue Growth: 3 21-50: 337 51-100: 2Over 100: 1Large number of commercial stage companies.
ImagingSectorOverviewR&D39%InitialRevenues33%Seed20%RevenueGrowth8%Imaging Companies by Business Stage1-538%21-5018%6-1016%11-2013%Over 10011%51-1004%Imaging Companies by Number of EmployeesNo. of Companies Dominant Medical FieldsCompanies by BusinessStageNo. of Employeesper Company55 General Health Seed: 10 1-5: 21Public Companies Multi-field R&D: 19 6-10: 93 Oncology Initial Revenues: 16 11-20: 7Companies Incubated(Now or in the past)Revenue Growth: 4 21-50: 1012 51-100: 3Over 100: 6Most mature Israeli medical devices sub-sector.7 multinational conglomerates purchased Israeli imaging companies and operate anR&D center in Israel
DrugDeliverySectorOverview1-52311-2076-10621-501Drug Delivery Companies by Number of EmployeesR&D18Initial Revenues12Seed7RevenueGrowth1Drug Delivery Companies by Business StageNo. of Companies Dominant Medical FieldsCompanies by BusinessStageNo. of Employeesper Company38 Diabetes & Obesity Seed: 7 1-5: 23Public Companies General Health R&D: 18 6-10: 62 Respiratory Initial Revenues: 12 11-20: 7Companies Incubated(Now or in the past)Revenue Growth: 1 21-50: 117 51-100: 1Over 100: 0Drug delivery companies are especially small compared to the entireindustry.
TelemedicineSectorOverview1-5511-20521-50350-1001Over 1002Telemedicine Companies by Number of EmployeesInitialRevenues6R&D5Seed2RevenueGrowth2Telemedicine Companies by Business StageNo. of Companies Dominant Medical FieldsCompanies by BusinessStageNo. of Employeesper Company16 General Health Seed: 2 1-5: 5Public Companies R&D: 6 6-10: 02 Initial Revenues: 5 11-20: 5Companies Incubated(Now or in the past)Revenue Growth: 2 21-50: 30 51-100: 1Over 100: 22 of the dominant telemedicine companies are traded on SIX (Swiss Exchange).
RoboticsSectorOverviewNo. of Companies Dominant Medical FieldsCompanies by BusinessStageNo. of Employeesper Company11 Rehabilitation Seed: 5 1-5: 6Public Companies Diagnostics R&D: 5 6-10: 31 Surgery Initial Revenues: 1 11-20: 2Companies Incubated(Now or in the past)Revenue Growth: 21-50: 08 51-100: 0Over 100: 0A young sub-sector – first robotics company established in 2001.8 of the 11 companies are incubated or had been in the past.1-5621-5036-102Robotics Companies by Number of EmployeesR&D5Seed5Initial Revenue1Robotics Companies by Business Stage
R&DTrends• Possible cuts in R&D expenses• Lowering the costs of devices and procedures• Home monitoring devices and telemedicine• Robotics