Venture capital funds and initial offerings accounted for more than
$500 million raised by Israeli companies in the life sciences sector
in 2000. The sector had a combined market value of about $13.4
billion at the end of 2000. Teva Pharmaceuticals, (TEVA) alone,
reached a market value of $9.5 billion. The figures appear in a
report on biotechnology in Israel for the year 2000, published by the
Israeli office of the international accounting firm of Ernst & Young,
which handles about 40 percent of all Israeli life sciences companies
served by the Big Five accounting firms. The report states that the
biotechnology sector in Israel is in a period of accelerated growth:
about 100 new companies in the life sciences field were established
in 2000, compared with 70 to 80 new companies in 1999. Investment in
Israeli companies by venture capital funds rose by 66 percent during
2000, to reach $203 million. The average investment per company also
rose steeply, from $2.5 million in 1999 to $5.5 million in 2000. The
number of stock offerings by biotechnology firms increased from three
in 1999 to seven in 2000. The following companies issued shares in
2000, raising a total of $300 million: Visionics, Keryx
Biopharmaceuticals, Compugen, XTL and Shahal Medical Services Ltd.
There were more Israeli offerings on European exchanges and fewer on
United States stock markets. The life sciences sector is divided
mainly into companies that develop medical instruments, biotechnology
and pharmaceutical firms. The report estimates that there are
currently about 150 biotechnology companies and about 400 new
companies in the country, in the field of medical instrumentation and
other areas related to the life sciences. The Government, for its
part, is pledging financial support .