meidata tamat - israel medical devices industry market overview
TRANSCRIPT
Project Summary
February 2013
The Israeli Medical Devices Industry
• Extensive market research of the Israeli Medical
Devices industry
• Detailed database of all 656 medical devices
companies in Israel
• 200 company profiles
• Info-graphic overview
Medical Devices: Project Output
• In-depth Analysis exposing:
Industry Structure & Ecosystems
Strength and Opportunities
The Global Context
Local and International Regulation
Extensive Financial & Statistic Analysis
Research Methodology
• Wide range of professional sources:
GBI (Global Business Intelligence)
IVC
Ernst & Young
Israel Central Bureau of Statistics
Research Methodology
Global Medical Devices Market Value
Source: Kalorama Information
Israeli Medical Devices Industry Market Size
Source: Central Bureau of Statistics
• $1.83B annual production (exports + local sales) in 2011, of
which $1.6B in exports, up 9% from 2010.
Leading Export Destinations (2011)
Source: Central Bureau of Statistics
Israel in the Lead
Source: IVC Research Center
• Israel is considered a leading country in the field of
medical devices worldwide:
1st in granted patents per capita
4th in absolute number of patents
Number of Israeli Companies Established
29
74
195
297
335
69
0
50
100
150
200
250
300
350
400
1960-1990 1991-1995 1996-2000 2001-2005 2006-2010 2011-2013
Number of Medical Devices Companies Established in Israel Since 1960 (not all active today)
Source: IVC Research Center
Israeli Life Science Industry
Medical Devices60%
Pharmaceuticals & Biotechnology
23%
Healthcare IT8%
Agro biotech3%
Industrial3%
Agro biotech2%
Bioinformatics1%
• 656 Medical Devices Companies of which:• 35 Publicly Traded
• 18 Owned by Foreign Companies
The Global Economic Climate
• More stringent regulatory environment poses a threat forinvestors
• Payer pressures – Public and private payers for health products (i.e.:governments, hospitals etc.) are pressuring medical devicescompanies to prove that their products are significantly better thanexisting products
• President Obama's health care reform – A new 2.3% excise taxbased on the sale price of certain medical devices sold in the US bythe manufacturer, producer or importer of the device
• Weak economy – The global economy has not yet recovered fromthe 2008 financial down turn and the gloomy future of the Europeaneconomy has left investors very cautious
Medical Devices Investment Trends
• Investments shift from small and upcoming companies tomore mature and established companies
• Milestones – Conglomerates acquiring medical devicescompanies are increasingly relying on milestone payments andstructured earn-outs in order to pass some of the acquisitionrisk to the seller
• Weak activity on the stock markets for Israeli medical devicescompanies
Industry Funding
• In 2011 the Israeli life science industry raised $385 million (notincluding Government funds). Over 55%, $218 million, wereinvested in the medical devices sector
• The amount raised by the life sciences industry in 2011 wasbigger, in absolute numbers, than that raised in 2010, but theweight of life sciences investments decreased from 28% of allhi-tech investments in 2010 to 18% of all investments in 2011
Sectors of the Medical Devices Industry
Source: Meidata
225
141
74
68
55
38
1615
11 9 3
Number of Companies in each sector
Therapeutic Devices
Monitoring & Diagnostics
Implants and Prosthetics
Medical Equipment
Imaging
Drug Delivery
Telemedicine
N/A
Robotics
Multi-sector
Research & Education
Most companies are in the
Therapeutic Devices sector
Medical Fields
Source: Meidata
0 10 20 30 40 50 60 70 80 90
Cardiology & Cardiovascular
Orthopedics
Dermatology & Aesthetics
Opthalmology
Respiratory
Diabetes & Obesity
Surgery
Rehabilitaion
Peripheral Vascular
Obstetrics
Pediatrics
Radiology
N/A
Segmentation of Medical Devices Companies by Medical Field
Industry Overview –Companies by Business Stage
Source: Meidata
R&D35%
Seed34%
Initial Revenues
26%
Revenue Growth
5%
Companies by Business Stage
• Over 65 % of the companies have not yet reached the commercial stage and are still in the seed or R&D stages of development
Industry Overview –Number of Employees in Companies
Source: Meidata
1-556%
6-1018%
11-2011%
21-509%
51-1003%
Over 1003%
Number of Employees in Israeli Medical Devices Companies
• Over 50% of the companies are based on 5 employees or less, while only 3% have over 100 employees
Therapeutics Sector Overview
1-5128
6-1044
11-2022
21-5020
51-1006
Over 1003
Therapeutic Devices Companies by Number of Employees
R&D78
Seed70
Initial Revenues
63
Revenue Growth
8
Therapeutic Devices Companies by Business Stage
No. of Companies Dominant Medical FieldsCompanies by Business
Stage
No. of Employees
per Company
225 Cardiovascular Seed: 70 1-5: 128
Public Companies Dermatology & Aesthetics R&D: 78 6-10: 44
12 Orthopedics Initial Revenues: 63 11-20: 22
Companies Incubated
(Now or in the past)Revenue Growth: 8 21-50: 20
44 51-100: 6
Over 100: 3
Largest medical devices sub-sector in Israel.
Israeli aesthetic devices companies among leading aesthetic devices companies in
the world.
Monitoring & Diagnostics Sector Overview
1-578
6-1024
11-2018
21-5017
50-1002
Over 1003
Monitoring & Diagnostics by Number of Employees
Seed54
R&D50
Initial Revenues
29
Revenue Growth
7
Monitoring & Diagnostics Companies by Business Stage
No. of Companies Dominant Medical FieldsCompanies by Business
Stage
No. of Employees
per Company
141 General Health Seed: 54 1-5: 78
Public Companies Cardiovascular R&D: 50 6-10: 24
10 Orthopedics Initial Revenues: 29 11-20: 18
Companies Incubated
(Now or in the past)Revenue Growth: 7 21-50: 17
44 51-100: 2
Over 100: 3
Almost 75% of monitoring & diagnostics companies are still in the Seed and
R&D stages.
Implants & Prosthetics Sector Overview
1-545
6-1012
11-207
21-505
51-1002
Over 1003
Implants & Prosthesis Companies by Number of Employees
Seed29
R&D26
Initial Revenues
13
Revenue Growth
2
Implants & Prosthesis Companies by Business Stage
No. of Companies Dominant Medical FieldsCompanies by Business
Stage
No. of Employees
per Company
74 Cardiovascular Seed: 29 1-5: 45
Public Companies Orthopedics R&D: 26 6-10: 12
2 Oral & Dental Initial Revenues: 13 11-20: 7
Companies Incubated
(Now or in the past)Revenue Growth: 2 21-50: 5
28 51-100: 2
Over 100: 3
Only 2 implants & prosthetic companies have annual sales of over $10
million.
Of the 4 largest companies, 3 develop dental implants.
Medical Equipment Sector Overview
1-541
6-1012
11-2010
21-503
51-1002
Over 1001
Medical Equipment Companies by Number of Employees
Initial Revenues
22
Seed22
R&D21
Revenue Growth
3
Medical Equipment Companies by Business Stage
No. of Companies Dominant Medical FieldsCompanies by Business
Stage
No. of Employees
per Company
68 Surgery Seed: 22 1-5: 41
Public Companies General Health R&D: 21 6-10: 12
2 Cardiovascular Initial Revenues: 22 11-20: 10
Companies Incubated
(Now or in the past)Revenue Growth: 3 21-50: 3
37 51-100: 2
Over 100: 1
Large number of commercial stage companies.
Imaging Sector Overview
R&D39%
Initial Revenues
33%
Seed20%
Revenue Growth
8%
Imaging Companies by Business Stage
1-538%
21-5018%
6-1016%
11-2013%
Over 10011%
51-1004%
Imaging Companies by Number of Employees
No. of Companies Dominant Medical FieldsCompanies by Business
Stage
No. of Employees
per Company
55 General Health Seed: 10 1-5: 21
Public Companies Multi-field R&D: 19 6-10: 9
3 Oncology Initial Revenues: 16 11-20: 7
Companies Incubated
(Now or in the past)Revenue Growth: 4 21-50: 10
12 51-100: 3
Over 100: 6
Most mature Israeli medical devices sub-sector.
7 multinational conglomerates purchased Israeli imaging companies and operate an
R&D center in Israel
Drug Delivery Sector Overview
1-523
11-207
6-106
21-501
Drug Delivery Companies by Number of Employees
R&D18
Initial Revenues12
Seed7
Revenue Growth
1
Drug Delivery Companies by Business Stage
No. of Companies Dominant Medical FieldsCompanies by Business
Stage
No. of Employees
per Company
38 Diabetes & Obesity Seed: 7 1-5: 23
Public Companies General Health R&D: 18 6-10: 6
2 Respiratory Initial Revenues: 12 11-20: 7
Companies Incubated
(Now or in the past)Revenue Growth: 1 21-50: 1
17 51-100: 1
Over 100: 0
Drug delivery companies are especially small compared to the entire
industry.
Telemedicine Sector Overview
1-55
11-205
21-503
50-1001
Over 1002
Telemedicine Companies by Number of Employees
Initial Revenues
6
R&D5
Seed2
RevenueGrowth
2
Telemedicine Companies by Business Stage
No. of Companies Dominant Medical FieldsCompanies by Business
Stage
No. of Employees
per Company
16 General Health Seed: 2 1-5: 5
Public Companies R&D: 6 6-10: 0
2 Initial Revenues: 5 11-20: 5
Companies Incubated
(Now or in the past)Revenue Growth: 2 21-50: 3
0 51-100: 1
Over 100: 2
2 of the dominant telemedicine companies are traded on SIX (Swiss Exchange).
Robotics Sector Overview
No. of Companies Dominant Medical FieldsCompanies by Business
Stage
No. of Employees
per Company
11 Rehabilitation Seed: 5 1-5: 6
Public Companies Diagnostics R&D: 5 6-10: 3
1 Surgery Initial Revenues: 1 11-20: 2
Companies Incubated(Now or in the past)
Revenue Growth: 21-50: 0
8 51-100: 0
Over 100: 0
A young sub-sector – first robotics company established in 2001.
8 of the 11 companies are incubated or had been in the past.
1-5621-50
3
6-102
Robotics Companies by Number of Employees
R&D5
Seed5
Initial Revenue
1
Robotics Companies by Business Stage
SWOT Analysis
R&D Trends
• Possible cuts in R&D expenses
• Lowering the costs of devices and procedures
• Home monitoring devices and telemedicine
• Robotics
