Royalty revenues from commercialized products based on patents registered by its staffers has amounted a billion shekels from 2001 alone, the institute has revealed.
The Weizmann Institute is Israel's smallest higher education establishment, and it receives the least financial support from the government. Yet this academic institute is among the world's five highest earners, among peer institutions, from commercialization of patents.
Royalties amounted to $93 million in 2003, the institute revealed, building on $72 million in 2002. In that year Weizmann placed third in the world, among academic institutes, from the perspective of royalties income.
Its income is double that of the Hebrew University of Jerusalem, which has twice as many staffers, and outstrips academic institutes in the U.S. and Europe that have far greater R&D budgets.
Substantial amounts originated from treatments developed for multiple sclerosis, namely Copaxone, produced by Teva, and Rebif, an interferon beta 1-a for relapsing forms of multiple4 sclerosis produced by Serono of Switzerland. Copaxone's sales in 2003 amounted to $720 million, while Rebif sales totaled $819 million.
Yeda Research and Development Company, the Weizmann Institute body for the commercialization of patents, gives 40% of the royalties to the academics involved in the discoveries. Altogether these scientists have made $100 million from 2001. Dr Isaac Shariv, who heads Yeda, says many academic commercialization corporations give the scientists a higher proportion, but what difference does it make if they don't bring in any money.
Moreover, Weizmann's income is exempt from tax, since it is a nonprofit organization. All its remaining money gets rolled back into R&D, which pads out the amounts it gets from the states and from research grants by about 15% a year. The state funds 37% of the institute's $50 million annual expenditure on research.
Weizmann boasts 1,500 families of patents, the highest of any institute in Israel. The cost of maintaining them comes to millions of dollars a year. Shariv explains that the ratio between registering a patent and actually commercializing it is 1:300. But the more time passes, the better the ratio becomes. 'After five years, the patent's chance of commercialization becomes 45%," he says.
Weizmann is home to a great deal of breakthrough research in a range of areas, from life sciences to physics and chemistry to computers. Each year the institute registers between 70 to 80 new families of patents.
Naturally conflicts of interest can arise regarding commercialization versus publication, admits Prof. Haim Garty, Yeda's chairman, adding that the institute has had problems with its corporate partners over the issue from time to time. But it tends to come down on the side of publication, and has lost money over the conflict. "I'd prefer a researcher from the Institute to get a Nobel prize rather than just another patent," he says.
A selection of key projects:
With Serono, production of Rebif, with sales in the first quarter of 2004: $260 million.
With Teva Pharmaceuticals (TASE, Nasdaq:TEVA), production of Copaxone, a rival treatment for multiple sclerosis. Sales in the first quarter of 2004: $207 million.
With NDS, satellite encryption technology. Sales in 2001: $200 million.
With Proneuron, treatments for multiple sclerosis and glaucoma based on Copaxone.
With Savient Pharmaceuticals (Nasdaq:SVNT), a product enabling premature babies without lung function to absorb oxygen until their lungs mature and become functional; and immunization for hepatitis type B.
With Peptor, a disease for type 1 diabetes, based on a peptide chain (protein).
With XTL, two drugs to treat hepatitis types B and C.
For the first time in its distinguished 45-year history, the Weizmann Institute of science has revealed its income from its patents.
With NBT, to cultivate algae producing a high concentration of beta carotene, which is considered an anti-cancer agent. Income runs into millions of dollars a year.