If Life Science is your thing - have a look at what Israel has to offer

1. State of Israel
Ministry of Industry, Trade & Labor - Foreign Trade Administration
Investment Promotion Center
Invest In Israel
Where Breakthroughs Happen
Creating Synergies in Life Sciences

2. Invest in Israel Now
Economic Growth
Competitive Edge
Strong Track Record
Developed Life Science sector
Government Support
Profit Driving Breakthroughs
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3. Highlights
Healthy Thriving Economy
First in the world for Medical Device Patents per Capita,
Forth for Bio-Pharma Patents.
Highest civilian R&D budget/GDP,
Fourth in investments in Biotechnology/GDP
Rated 1-3 worldwide in Medical Device area
More than 13 drugs in advanced clinical trials (3rd in
Europe)
Largest number of scientists per capita in the world and
devotes about one third of its research to the life
sciences.
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4. Country ID
Area: 22,000 sqkm
Population: ~ 7.2 millions
GDP: $168 Billion (2008F)
Main Cities: Jerusalem, Tel-Aviv, Haifa, Be’er Sheva
Maps: Wikipedia

5. Main Economic Indicators
2005 2006 2007 2008F
GDP (current prices, B$) 131.2 142 161.8 ~168
GDP Growth Rate (%) 5.3 5.2 5.3 ~4
GDP/Capita (Current 18,700 19,900 21,000 ~21,730
Prices)
GDP/Capita (based on 29,044 30,464 31,767 -
purchasing power parity)
Exports (goods & 57.9 62.6 70.65 ~78
services, B$)
Imports ($ billion) 57.5 61.7 73.7 ~84
Inflation (CPI, %) 2.4 -0.1 3.4 ~5
Unemployment (%) 9.0 8.4 7.5 !6
Sources: Bank of Israel, Ministry of Finance, International Monetary Fund

6. Main Economic Indicators (Graphs)
Unemployment (%)
Inflation % (excl. housing)
2005 2006 2007 2008
2005 2006 2007 2008F
10
6
5 8
4
6
3
4
2
1 2
0
0
-1
GDP Growth Rate
Exports ($ Billion)
2005 2006 2007 2008
2005 2006 2007 2008
100 6
5
80
4
60
3
40
2
20 1 Source: Bank of Israel Data
0
0
Sources: Bank of Israel, Ministry of Finance, International Monetary Fund

7. Foreign Direct Investment
(millions of US$)
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
-
97' 98' 99' 00' 01' 02' 03' 04' 05` 06' 07' 08F
Source: Bank of Israel

8. Foreign Companies Invested in Israel - Some Examples
US Europe Asia
• • •
Microsoft British Telecom Sony
• • •
Epix SAP Toyo Ink
• • •
AOL Time Warner Philips Medical Fuji
• • •
Intel Alcatel Honda
• • •
IBM Siemens Sumitomo Trading
• • •
Perrigo Cable & Wireless Nomura
• • •
Cisco Systems Deutsche Telekom Samsung Electronics
• • •
GE Healthcare Telecom Italia Daewoo
• • •
Lucent Generali LG Group
• • •
3Com Nestle Hyundai
• • •
Hewlett Packard L’Oreal Acer Computers
• • •
Stryker Danone Macronix
• • •
Motorola Unilever Winbond
• • •
Sun Microsystems Vilmorin Hutchison Telecomm
• • •
Johnson & Johnson Veolia Scigen
• • •
Dentsply Ferring Jain Irrigation
• • •
Kodak MERCK Serono Sun Pharmaceutical

9. Money raised by Israeli Life Science companies
111
500 120
103
97
Number of companies
100
Foreign Direct Investment
88 86
400 82
76 75
80
300
60
($M)
200
40
100 20
- 0
99' 00' 01' 02' 03' 04' 05` 06'
Number of companies
Source: IVC-Online, Jan 2007 9

10. Israel’s Competitive Edge – IMD World Report 2007
Country Rank 1st 2nd 3rd 4th
Sweden Finland Japan
BUSINESS EXPENDITURE ON R&D Israel
TOTAL EXPENDITURE ON R&D Sweden Finland Japan
Israel
AS A PRECENTAGE OF GDP
AVAILABILITY OF QUALIFIED Israel Singapore India Iceland
ENGINEERS
Netherlands
VENTURE CAPITAL AVAILABILITY U.S.A Israel Denmark
Singapore
INFORMATION TECHNOLOGY SKILLS Iceland Israel Korea
Hong
FLEXABILITY & ADAPTABILITY OF Israel
Iceland Ireland
THE WORKFORCE Kong
HIGHER EDUCATION ACHIEVEMENTS Canada Japan Israel
Singapore
Israel Ranks 21
Source: IMD World Competitiveness Yearbook - 2007

11. Israel’s Competitive Edge – WEF Report 2007
Country Rank 1st 2nd 3rd 4th
AVAILABILITY OF SCIENTISTS AND Japan Finland India
Israel
ENGINEERS
U.S.A Finland
VENTURE CAPITAL AVAILABILITY Israel Netherlands
New
Germany
JUDICIAL INDEPENDENCE Israel
Netherlands
Zealand
Sweden Singapore Iceland
TECHNOLOGICAL READINESS Israel
QUALITY OF RESEARCH Switzerland U.S.A U.K Israel
ORGANIZATIONS
Israel Ranks 17 Out of 131 Countries
“Israel does spectacularly well on those indicators that capture technology innovation, education, human capital
and this accounts for the very rapid movement of the Israeli Economy .”
(Augusto Lopez-Claros, Chief Economist, World Economic Forum, December 2006)
Source: WEF – The Global Competitiveness Report 2006 – 2007

12. Innovation - 1st in Medical 4th in Biopharma
Medical patents/capita BioPharma patents/capita
Israel USA
United States Switzerland
Sweden Denmark
Japan
Israel
Switzerland
Germany
Germany
Sweden
Belgium
Canada
Canada
Japan
Taiwan
UK
Denmark
France
Netherland
Belgium
United Kingdom
Netherland
France
Italy
South Korea
- 50 100 150 200
- 20 40 60 80 100 120
Source: USPTO 12

13. Significant Selected Mergers & Acquisitions
Acquirer Amount Sector Israeli Company Date
Nobel BioCare Feb 2008
95 Mil Pharmaceutical AlphaBio
BioNess 75 Mil Medical Device Ness June 2007
Boston Scientific 80 Mil Medical Device Remon June 2007
Sun Pharma 454 Mil Taro
Pharmaceutical May 2007
J&J 159 Mil Colbar July 2006
BioMaterial
Epix 300 Mil Predix Apr 2006
Pharmaceutical
TA Associates 90 Mil Medical Lasers Alma Lasers Mar 2006
McKesson Corp 105 Mil Cardiac Imaging Medcon Jun 2005
Ferring Holdings 80 Mil Pharmaceutical Savient Mar 2005
Sources: IVC-ONLINE and other public sources

14. Israel Life sciences cluster Leading
Academic
Seasoned VC Institutions
Community & Research
University
Medical,
Defense
Science
Technology
Students and
Spillover
Postgraduates
Existing
Successful
Availability of Corporate
Technology
Life science
Immigration
Human R&D
Infrastructure
Companies
Capital
Technological
Global
Incubators
Life Science
Firms Veterans
Hospitals and
Strong
Medical Centers
Innovative &
Government
Entrepreneurial
Support
Culture
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15. Israel’s Life Sciences Industry sectors and stage
Companies by
Service
IT
stage Other
2%
5%
4%
Other
Pharma
6%
13%
Medical Seed
Biotech Revenue
Devices 35%
21% 34%
53%
ClinicalPre-Clinical
10%
17%
Companies by
sector
Source: ILSI Database – 2006 15

16. Major Therapeutic Areas:
CNS – Four Blockbuster drugs in market (Copaxone,
Rebif, Exelon, Azilect)
Additional 5 drugs in clinical stages
Regenerative medicine & Cell Therapy (20 active
companies, 4 in clinical trials)
Cancer - Cell Therapy, Monoclonal Antibodies, Small
Molecules, Image Guided Technologies
Inflammation & Autoimmunity
Cardiovascular
Infectious diseases, Vaccines
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17. Major Technological Fields:
Implantable therapeutic devices
Diagnostics & Monitoring – Device & Biomarkers
Therapeutic molecules
External Imaging
Internal Imaging
Drug delivery
Cell & Tissue Therapy
Minimal Invasive Surgery
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18. Israeli Biotechnology Innovations
Can-Fite has developed a platform technology that targets the A3
Adenosine Receptor for treatment of cancer and autoimmune
inflammatory diseases.
Gamida Cell is developing unique stem cells therapeutics, based on
its proprietary stem/progenitor cells expansion technologies.
Rosetta Genomics is a leader in the development of microRNA-
based diagnostics and therapeutics
Two Israeli companies lead the quest to develop a stem cell therapy
for Parkinson’s disease. BrainStorm Cell Therapeutics uses
autologous bone marrow derived adult stem cells, while Cell Cure
employs human embryonic stem cell technology. Both companies
have had successes in reducing symptoms of Parkinson’s disease in
mice or rat models and are approaching readiness for clinical trials
And Biocancell, BionVax, Compugen, Nasvax …
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19. Israeli Medical Devices Breakthroughs
Given Imaging - 1st ingestible video camera used to
view the small intestine and diagnose disorders
Insightec - Image Guided HIFUS (High Intensity Focused Ultrasound)
GE Healthcare in Israel manufactured the world’s first miniaturized
portable cardiac ultrasound system
The Philips Brilliance CT scanner, developed in Israel takes a
comprehensive picture of a patient in seconds instead of minutes – a
critical difference in the emergency room, where every second counts
Medinol pioneered the development of closed cell stent design and
many additional innovations to the field of heart catheterization
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20. Israeli Medical Devices Breakthroughs
3D Endoscope
3D Dental Mapping
Fixed noncooled Magnet Open MRI
Simulators for Medical Procedures
Revolutionary Rectoscope
Intravascular miniaturized MRI imager
Spectral Imaging Device
Various Stents
NiTiNOL Tooling
Labor Monitoring
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21. Government Support
The Law for the Encouragement of Capital Investments
Competitive grant program
Tax exemption path for manufacturing facilities
The Law for the Encouragement of Industrial R&D
Increased grants and longer project support for LS
Company-Company, Company-Consortia, company-
academy support program
The Global Enterprise R&D Cooperation Framework
The Global Enterprise R&D Project Centers
Special tax benefits for R&D centers
Tax exemption for venture capital investment
Employment grant program
Training grant program
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22. Summary
Israel is a center of innovation and technological
excellence
Israel is a source for profit driving innovation in the fields
of Medtech and Bio-Pharma
Foreign companies can cost effectively conduct cutting
edge research in Israel
Favourable government support programs: Investment
grants, tax-exemption and R&D
Invest in Israel can support investor by:
Technology scouting with our network of partners
Helping establishing a presence in Israel
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23. State of Israel
Ministry of Industry, Trade & Labor
Foreign Trade Administration
Investment Promotion Center
5 Bank Israel St., Kiryat Ben-Gurion Jerusalem, Israel
www.investinisrael.gov.il infoipc@moital.gov.il
Tel: +972-2-6662607 Fax:+972-2-6662983