Israel's Emerging Medical Device MarketplaceMay. 19, 2013
Israel's medical device industry has become an exciting and promising marketplace due to the breadth of innovation taking place within it. Despite the domestic industry only accounting for 0.6% of the global medical device market in 2011, the country is the first in the world for the number of patents granted per capita and fourth in absolute number of patents in the medical devices field.
According to the Ministry of Industry, Trade and Labor, which commissioned a 2012study to learn more about the budding Israeli Life Sciences industry, the study found there to be 656 medical device companies operating in the country. Of those 656 companies, 35 are publicly traded and 18 are owned by foreign enterprises.
The 656 Israeli medical device companies generated $1.83 billion of revenue in 2011, of which, $1.6 billion originated from exports, representing an increase of 9% compared to 2010 levels. Of the $1.6 billion in exports, the United States accounted for $586 million of it, followed by Europe with $419 million, and China and Japan with slightly more than $100 million apiece.
The medical startup marketplace in Israel has also received ample interest and investment from significant medical device companies overseas. In 2008, Johnson & Johnson acquired Omrix Biopharmaceuticals, an Israeli company that develops immunotherapy products for $438 million. In 2009, Medtronic acquired Ventor Technologies, a maker of aortic valve prostheses for $325 million. And as recently as last month, Opko Health acquired PROLOR Biotech, an Israeli company specializing in longer-acting therapeutic proteins for $480 million.
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