Israel at 60 A Snapshot of Israeli Life

Israel at 60: A Snapshot of Israeli Life Science

Number of Life Science Patents % of World Jonathan Fleming & Jay Schwartz

1996 -2006 A Decade of Growth Number of Companies Founded 745 companies l 75% founded in the last decade l 40% established in the last five years l 16% compounded annual growth l Jonathan Fleming & Jay Schwartz

Financing Life Science Development (2004) Financing Source $ Millions % Israeli Government (about 35% of OCS budget) 308. 0 30. 3 Competitive Grants (NIH, etc. ) 130. 0 12. 8 Bi-National Government Supported Foundations (e. g. BIRD Foundation) 17. 6 1. 7 Venture Capital 287. 0 28. 2 Self Funding Companies 274. 0 27. 0 Jonathan Fleming & Jay Schwartz

Stage of Company Development Jonathan Fleming & Jay Schwartz

Israeli Life Sciences Sectors: medical device “heavy” Jonathan Fleming & Jay Schwartz

Number of Israeli workers in the Life Sciences l Most companies were small with less than 50 people l In 2005, the Israeli Life Science industry employs an estimated 25, 000 individuals in 557 companies Jonathan Fleming & Jay Schwartz

Israel Possesses and is Developing Significant Human Capital at Universities and Centers Life Sciences studies take place primarily in: 1. Hebrew Universities 2. Technion 3. Tel Aviv University 4. Bar Ilan University 5. Ben Gurion University 6. Weizmann Institute Jonathan Fleming & Jay Schwartz

All Major Therapeutic Areas Represented Number of Companies (296 Total) Jonathan Fleming & Jay Schwartz

Examples Jonathan Fleming & Jay Schwartz

Given Imaging, Ltd. l l l Pioneered Pill. Cam capsule endoscopy. The Pill. Cam video capsule is a disposable, vitamin sizedminiature video camera contained in a capsule that can be easily ingested by the patient. The capsule transmits high quality color images of the GI tract that enable physicians to visualize the small intestine and esophagus. Pill. Cam SB, the only ingestible diagnostic tool that allows direct visualization of the entire small bowel, became available in 2001 Listed on NASDAQ (GIVN) $112. 8 MM in sales for 2007/ $441 MM Market CAP Jonathan Fleming & Jay Schwartz

• Unique navigation technology allows physicians to steer and guide a catheter through the 3 -dimensional lung volume • Received FDA marketing clearance • CE Mark for commercialization in Europe without penetrating lung tissue, and without the use of x-ray based • Currently selling direct in U. S. , fluoroscopy. • Europe, and Israel ($14 M est. fro For the first time, pulmonologists do not 2008) have to refer diagnostic biopsy procedures to the thoracic surgeon. • Delivering the distal end of a catheter to the suspicious lesion not only enables a minimally invasive biopsy procedure, but • Reimbursement applied for to cover incremental cost of disposable • Ramping up sales and marketing infrastructure also supports numerous therapeutic modalities. Jonathan Fleming & Jay Schwartz

TEVA Pharmaceuticals It is the largest generic drug manufacturer in the world and one of the 20 largest pharmaceutical companies worldwide l Markets products from a wide range of therapeutic areas including analgesic, anti-infective, cardiovascular, oncology, CNS, dermatological and anti-inflammatory. l Listed on NASDAQ (TEVA). l 2006 sales were over $8. 4 BB/ $35 BB Market Cap l Jonathan Fleming & Jay Schwartz

Q&A Jonathan Fleming & Jay Schwartz