Investing In Israeli Biotechnology

The number of Israeli biotechnology companies has doubled from 30 in 1990 to 60 in 1993, according to Max Herzberg, chairman of the country's national steering committee on biotechnology, speaking at a conference held in Jerusalem on international cooperation in the development of biotechnology (see also Marketletter December 12, 1994).

Of the 60 companies, 21 are startups, eight are classified as small, 22 are medium, and six are large. Only the medium-to-large have sales, and some of them may have some profits.

Total sales for the industry were just over $300 million, with exports representing 90%. Israel's sales represent 2.7% of world biotechnology sales, which amount to $1.4 billion. Israeli sales are growing at an annual rate of 14%, with sales of $650 million projected for the year 2000 and exports amounting to $482 million. Sales of biotechnology-derived health care products amounted to $129.4 million, of which $121 million is for export. Sales per employee are $146,000 in the health care sector.