CBI is invested in one of Israel's most prominent biotechnology companies, D-Pharm. It
has a substantial investmen in that company. Another sizeable holding is in
Compugen. That company has generated sales but its long-term profitability is far from
assured. CBI's management goes to great lengths to explain that it differs from
conventional venture capital companies. When the management decides to move
ahead, it typically invests between $5-$10 million. Of late, it has shown a readiness to
invest in companies outside of Israel, a cross-border approach that is intended to
develop an international portfolio.
However, the proliferation of biotechnology venture capital funds in the 1990s, also
helped to boost the sector in Israel. Foreign venture capital having already spotted the
value of Israel's high-technology industry, was the first to discover the potential riches
of Israeli biotechnology. Israeli-based biotechnology funds (most of whose investors
are, nevertheless, foreign) have grown in size and number and there are now about 20
such funds active in Israel, individually valued between $20 million and $100 million.
Israeli companies have been successful at generating funds through public offerings,
especially on European stock markets. There are now seven Israeli biotechnology
companies listed on foreign stock exchanges.
About Clal Biotechnology Industries
Dr. David Haselkorn, CEO, for ll years beginning in 1987, headed the activities of
Biotechnology General Corporation. BTG is dedicated to producing
genetically-engineered drugs and during his management tenure BTG developed into
one of the world's first profitable biotechnology companies.
In the late 1970s Dr. Haselkorn, after earning a doctorate in Chemical Immunology from
the Weizmann Institute of Science, headed a major R & D arm of the Israeli Defence
Forces. His group was awarded the prestigious Israel Defense Prize.
CBI's initial investments targeted Israeli entities. In recent years CBI expanded its
investment focus to include companies outside of Israel's borders, has investing over $
25 m. in French and US-based companies,
CBI's strategy appears on the surface as very conservative, however it is highly
aggressive:
CBI manages a proprietary database with more than 250 investments that have been
screened, out of which 10 investments have been executed.
Clal Biotechnology Industries Ltd. (CBI) has a strong management team with a defined
and disciplined approach to investing. "We look for companies that have minimally
completed animal tests and are about to begin human tests," asserts Dr. David
Haselkorn, CEO of Clal Biotechnology Industries Ltd. The general direction taken by
CBI is towards immunology, with a war chest of $100 million the company's yield or its
return-on-investment will very much depend on approvals to be won for the products
which are now in the pipeline.
Clal Biotechnology Industries Ltd. (CBI) is wholly owned by Clal Industries and
Investments Ltd. Currently, it has under its management $140 million. Its investment
activities are totally focused on life sciences and reflect the experience and
capabilities of its management team.
*Becoming a major shareholder in portfolio companies with technological platforms and
innovative products having a large potential market and clinical proof of feasibility.
*Co-operating with strategic partners, capitalising on a wider scope of resources at all
stages of the portfolio company's life.
*Investing in biopharmaceutical companies demonstrating cutting-edge technologies
and clinical proof of concept.
*Investing heavily ( average $10m per investment) in a few select companies, thus
overseeing a relatively small portfolio (10-12 companies max.)
*Management with an intrinsic understanding of the technology and science exercises
a hands-on strategy
*Focusing on a long term perspective.
*Enjoys backing of the Clal group, in which life science investment constitutes a core
investment area.