Strong potential seen for Israeli biotech

The Israeli biotechnology industry has the potential to achieve $3-$4billion sales within the next five to seven years, from $800 million at present, according to Haim Aviv, an early founder of the country's sector.

Israel now has 160 biotechnology companies employing some 4,000 people, compared with 30 employing 600 in 1990, when sales were about $50 million, said Prof Aviv. However, he noted the lack of financial resources, managerial skills and experience, which is compounded by political and geographic conditions, and stressed the lack of new drug development in Israel, in an industry dominated by generic producers such as Teva and Taro.

However, Prof Aviv also welcomed the request put forward by the chief scientist at Israel's Ministry of Industry and Trade, Carmel Vernia, for proposals to be made by February 2002 for the management of two incubators for biotechnology start-up companies. The incubators would be run by private businesses with a scientific background, and these would be required to commit for six years and establish $20 million in assets, as well as agreeing to establish a central laboratory to service the start-up companies.