Biotech Sector Lags in Israeli Life Sciences Boom

With investment in the life sciences sector reaching new record levels in Israel, a new survey appears to indicate that drug sector investment is lagging behind healthcare services and medical equipment.

The international study, which compares the Israeli and US life sciences industries, shows that medical equipment attracted the lion's share of the US$284mn investment in Israeli life sciences recorded in 2004. While the country's biotech sector remains strong and well-established, the current Israeli outlook for the sector contrasts with the US, where biotech accounted for some 60% of last year's US$6.3bn investment in life sciences.

Further, although finance has increased over the last year, the average amount raised in each financing round appears to have fallen in all recent years except last year. It also appears that the number of financing deals is levelling. In general, the results imply that the biotech sector, which is the major focus of the Israeli drug sector's R&D activities, is fast approaching maturity.