1. Project Summary
February 2013
TheIsraeliMedicalDevicesIndustry

2. • Extensive market research of the Israeli Medical
Devices industry
• Detailed database of all 656 medical devices
companies in Israel
• 200 company profiles
• Info-graphic overview
MedicalDevices:ProjectOutput

3. • In-depth Analysis exposing:
 Industry Structure & Ecosystems
 Strength and Opportunities
 The Global Context
 Local and International Regulation
 Extensive Financial & Statistic Analysis
ResearchMethodology

4. • Wide range of professional sources:
 GBI (Global Business Intelligence)
 IVC
 Ernst & Young
 Israel Central Bureau of Statistics
ResearchMethodology

5. GlobalMedicalDevicesMarketValue
Source: Kalorama Information

6. IsraeliMedicalDevicesIndustryMarketSize
Source: Central Bureau of Statistics
• $1.83B annual production (exports + local sales) in 2011, of
which $1.6B in exports, up 9% from 2010.

7. LeadingExportDestinations(2011)
Source: Central Bureau of Statistics

8. IsraelintheLead
Source: IVC Research Center
• Israel is considered a leading country in the field of
medical devices worldwide:
 1st in granted patents per capita
 4th in absolute number of patents

9. Numberof IsraeliCompaniesEstablished
29
74
195
297
335
69
0
50
100
150
200
250
300
350
400
1960-1990 1991-1995 1996-2000 2001-2005 2006-2010 2011-2013
Number of Medical Devices Companies Established in Israel
Since 1960 (not all active today)
Source: IVC Research Center

10. IsraeliLifeScienceIndustry
Medical Devices
60%
Pharmaceuticals
& Biotechnology
23%
Healthcare IT
8%
Agro biotech3%
Industrial
3%
Agro biotech
2%
Bioinformatics
1%
• 656 Medical Devices Companies of which:
• 35 Publicly Traded
• 18 Owned by Foreign Companies

11. TheGlobalEconomicClimate
• More stringent regulatory environment poses a threat for
investors
• Payer pressures – Public and private payers for health products (i.e.:
governments, hospitals etc.) are pressuring medical devices
companies to prove that their products are significantly better than
existing products
• President Obama's health care reform – A new 2.3% excise tax
based on the sale price of certain medical devices sold in the US by
the manufacturer, producer or importer of the device
• Weak economy – The global economy has not yet recovered from
the 2008 financial down turn and the gloomy future of the European
economy has left investors very cautious

12. MedicalDevicesInvestmentTrends
• Investments shift from small and upcoming companies to
more mature and established companies
• Milestones – Conglomerates acquiring medical devices
companies are increasingly relying on milestone payments and
structured earn-outs in order to pass some of the acquisition
risk to the seller
• Weak activity on the stock markets for Israeli medical devices
companies

13. IndustryFunding
• In 2011 the Israeli life science industry raised $385 million (not
including Government funds). Over 55%, $218 million, were
invested in the medical devices sector
• The amount raised by the life sciences industry in 2011 was
bigger, in absolute numbers, than that raised in 2010, but the
weight of life sciences investments decreased from 28% of all
hi-tech investments in 2010 to 18% of all investments in 2011

14. SectorsoftheMedicalDevicesIndustry
Source: Meidata
225
141
74
68
55
38
16
15
11 9 3
Number of Companies in each sector
Therapeutic Devices
Monitoring & Diagnostics
Implants and Prosthetics
Medical Equipment
Imaging
Drug Delivery
Telemedicine
N/A
Robotics
Multi-sector
Research & Education
Most companies
are in the
Therapeutic
Devices sector

15. MedicalFields
Source: Meidata
0 10 20 30 40 50 60 70 80 90
Cardiology & Cardiovascular
Orthopedics
Dermatology & Aesthetics
Opthalmology
Respiratory
Diabetes & Obesity
Surgery
Rehabilitaion
Peripheral Vascular
Obstetrics
Pediatrics
Radiology
N/A
Segmentation of
Medical Devices
Companies by
Medical Field

16. IndustryOverview–Companies byBusiness Stage
Source: Meidata
R&D
35%
Seed
34%
Initial
Revenues
26%
Revenue
Growth
5%
Companies by Business Stage
• Over 65 % of the companies have not yet reached the commercial stage and are
still in the seed or R&D stages of development

17. IndustryOverview–NumberofEmployeesinCompanies
Source: Meidata
1-5
56%
6-10
18%
11-20
11%
21-50
9%
51-100
3%
Over 100
3%
Number of Employees in Israeli Medical Devices
Companies
• Over 50% of the companies are based on 5 employees or less, while only 3% have
over 100 employees

18. TherapeuticsSectorOverview
1-5
128
6-10
44
11-20
22
21-50
20
51-100
6
Over 100
3
Therapeutic Devices Companies by Number of
Employees
R&D
78
Seed
70
Initial
Revenues
63
Revenue
Growth
8
Therapeutic Devices Companies by Business
Stage
No. of Companies Dominant Medical Fields
Companies by Business
Stage
No. of Employees
per Company
225 Cardiovascular Seed: 70 1-5: 128
Public Companies Dermatology & Aesthetics R&D: 78 6-10: 44
12 Orthopedics Initial Revenues: 63 11-20: 22
Companies Incubated
(Now or in the past)
Revenue Growth: 8 21-50: 20
44 51-100: 6
Over 100: 3
Largest medical devices sub-sector in Israel.
Israeli aesthetic devices companies among leading aesthetic devices companies in
the world.

19. Monitoring&DiagnosticsSectorOverview
1-5
78
6-10
24
11-20
18
21-50
17
50-100
2
Over 100
3
Monitoring & Diagnostics by Number of Employees
Seed
54
R&D
50
Initial
Revenues
29
Revenue
Growth
7
Monitoring & Diagnostics Companies by Business
Stage
No. of Companies Dominant Medical Fields
Companies by Business
Stage
No. of Employees
per Company
141 General Health Seed: 54 1-5: 78
Public Companies Cardiovascular R&D: 50 6-10: 24
10 Orthopedics Initial Revenues: 29 11-20: 18
Companies Incubated
(Now or in the past)
Revenue Growth: 7 21-50: 17
44 51-100: 2
Over 100: 3
Almost 75% of monitoring & diagnostics companies are still in the Seed and
R&D stages.

20. Implants&ProstheticsSectorOverview
1-5
45
6-10
12
11-20
7
21-50
5
51-100
2
Over 100
3
Implants & Prosthesis Companies by Number of Employees
Seed
29
R&D
26
Initial
Revenues
13
Revenue
Growth
2
Implants & Prosthesis Companies by Business Stage
No. of Companies Dominant Medical Fields
Companies by Business
Stage
No. of Employees
per Company
74 Cardiovascular Seed: 29 1-5: 45
Public Companies Orthopedics R&D: 26 6-10: 12
2 Oral & Dental Initial Revenues: 13 11-20: 7
Companies Incubated
(Now or in the past)
Revenue Growth: 2 21-50: 5
28 51-100: 2
Over 100: 3
Only 2 implants & prosthetic companies have annual sales of over $10
million.
Of the 4 largest companies, 3 develop dental implants.

21. MedicalEquipmentSectorOverview
1-5
41
6-10
12
11-20
10
21-50
3
51-100
2
Over 100
1
Medical Equipment Companies by Number of Employees
Initial
Revenues
22
Seed
22
R&D
21
Revenue
Growth
3
Medical Equipment Companies by Business Stage
No. of Companies Dominant Medical Fields
Companies by Business
Stage
No. of Employees
per Company
68 Surgery Seed: 22 1-5: 41
Public Companies General Health R&D: 21 6-10: 12
2 Cardiovascular Initial Revenues: 22 11-20: 10
Companies Incubated
(Now or in the past)
Revenue Growth: 3 21-50: 3
37 51-100: 2
Over 100: 1
Large number of commercial stage companies.

22. ImagingSectorOverview
R&D
39%
Initial
Revenues
33%
Seed
20%
Revenue
Growth
8%
Imaging Companies by Business Stage
1-5
38%
21-50
18%
6-10
16%
11-20
13%
Over 100
11%
51-100
4%
Imaging Companies by Number of Employees
No. of Companies Dominant Medical Fields
Companies by Business
Stage
No. of Employees
per Company
55 General Health Seed: 10 1-5: 21
Public Companies Multi-field R&D: 19 6-10: 9
3 Oncology Initial Revenues: 16 11-20: 7
Companies Incubated
(Now or in the past)
Revenue Growth: 4 21-50: 10
12 51-100: 3
Over 100: 6
Most mature Israeli medical devices sub-sector.
7 multinational conglomerates purchased Israeli imaging companies and operate an
R&D center in Israel

23. DrugDeliverySectorOverview
1-5
23
11-20
7
6-10
6
21-50
1
Drug Delivery Companies by Number of Employees
R&D
18
Initial Revenues
12
Seed
7
Revenue
Growth
1
Drug Delivery Companies by Business Stage
No. of Companies Dominant Medical Fields
Companies by Business
Stage
No. of Employees
per Company
38 Diabetes & Obesity Seed: 7 1-5: 23
Public Companies General Health R&D: 18 6-10: 6
2 Respiratory Initial Revenues: 12 11-20: 7
Companies Incubated
(Now or in the past)
Revenue Growth: 1 21-50: 1
17 51-100: 1
Over 100: 0
Drug delivery companies are especially small compared to the entire
industry.

24. TelemedicineSectorOverview
1-5
5
11-20
5
21-50
3
50-100
1
Over 100
2
Telemedicine Companies by Number of Employees
Initial
Revenues
6
R&D
5
Seed
2
Revenue
Growth
2
Telemedicine Companies by Business Stage
No. of Companies Dominant Medical Fields
Companies by Business
Stage
No. of Employees
per Company
16 General Health Seed: 2 1-5: 5
Public Companies R&D: 6 6-10: 0
2 Initial Revenues: 5 11-20: 5
Companies Incubated
(Now or in the past)
Revenue Growth: 2 21-50: 3
0 51-100: 1
Over 100: 2
2 of the dominant telemedicine companies are traded on SIX (Swiss Exchange).

25. RoboticsSectorOverview
No. of Companies Dominant Medical Fields
Companies by Business
Stage
No. of Employees
per Company
11 Rehabilitation Seed: 5 1-5: 6
Public Companies Diagnostics R&D: 5 6-10: 3
1 Surgery Initial Revenues: 1 11-20: 2
Companies Incubated
(Now or in the past)
Revenue Growth: 21-50: 0
8 51-100: 0
Over 100: 0
A young sub-sector – first robotics company established in 2001.
8 of the 11 companies are incubated or had been in the past.
1-5
621-50
3
6-10
2
Robotics Companies by Number of Employees
R&D
5
Seed
5
Initial Revenue
1
Robotics Companies by Business Stage

26. SWOTAnalysis

27. R&DTrends
• Possible cuts in R&D expenses
• Lowering the costs of devices and procedures
• Home monitoring devices and telemedicine
• Robotics

28. Thank You
info@meidata.com
www.meidata.com
Meidata