18 / 40
18
Israel-India Business Guide - MedTech, Pharma & Biotech
I
srael has emerged as one of the world’s leading centers
for the development of innovative medical devices. The
country has by far the highest proportion of any country
of new patents in this sector per head of the population.
Nearly 300 companies in this field in Israel - about half of the
country’s Life Sciences sector - encompass a diverse range
of medical disciplines including therapeutics, diagnostics,
implants, disposables and medical equipment.
Medical devices sector constitutes a fast growing global
market with innovative devices providing breakthroughs in
earlier and better diagnoses and medical treatments that
bring clinical benefits to patients at a cost savings to the
healthcare system and the individual patients.
Inter-Disciplinary Capabilities
Israel’s strength in this sector stems from inter-disciplinary
capabilities, which bring together medicine, clinical
expertise, materials science, electronics, software expertise
and engineering know-how. Some of the world’s leading
universities with renowned R&D faculties, leading edge
medical centers, the world’s highest per-capita number of
physicians, and a flourishing high-tech sector combined
with a spirit of entrepreneurship have all contributed to the
country’s dynamic growth in medical devices.
Israel’s best-known medical device firm is Given Imaging,
which is redefining gastrointestinal diagnosis by
developing, producing and marketing innovative, patient-
friendly products for detecting gastrointestinal disorders.
The company’s flagship technology, the Given Diagnostic
System features the naturally ingested PillCam(TM) video
capsules endoscopes. PillCam™ SB for the small bowel and
PillCam ESO for the esophagus, both cleared by the FDA.
PillCam capsules for the stomach and the colon are under
development. Established in 1998, Given Imaging is listed
on the NASDAQ.
Israel’s medical device sector evolved from the country’s
highly successful medical equipment industry, which was
pioneered in the 1980’s and 1990’s by Elbit, that developed
diagnostic imaging technology including innovative
nuclear and magnetic resonance imaging and ultra-sound
equipment. Elbit eventually sold its diagnostic medical
imaging using computer tomography to General Electrics’
Marconi Division, which in its turn was acquired by Philips
Medical Systems. Similarly, Elbit’s diagnostic ultrasound
and nuclear and magnetic resonance imaging were sold
to GE Healthcare.
Elbit and GE Healthcare’s partnership has spawned one
of the country’s most promising medical device firms –
InSightec. Established in 1999 by Elbit and General Electric,
ExAblate 2000, InSightec’s first product, is FDA approved,
and integrates focused ultrasound thermal ablation with
magnetic resonance imaging capabilities to provide a non-
invasive method for destroying or ablating targeted tumor
tissues. InSightec plans a summer IPO on the NASDAQ
market.
Another veteran Israeli medical device company is Lumenis,
initially established in 1991 as ESC Medical Systems
and formed several years later following a merger with
Coherent Medical Group. Lumenis develops manufactures,
and markets state-of-the-art proprietary laser and intense
pulsed light devices for dermatology and aesthetics.
Traded on the US NASDAQ market, Lumenis is Israel’s
largest medical devices company.
Increasing Amounts of Foreign Investment
In recent years Israel’s medical device sector is attracting
increasing amounts of foreign investment. This is achieved
through VC funds, IPOs and direct investments from
major US and international companies like Johnson &
Johnson, Boston Scientific, Medtronic and Guidant.
Johnson & Johnson acquired Israeli medical device firm
Biosense through its Cordis Division. Biosense provides
solutions for endocardial diagnosis and therapy. Johnson
& Johnson has also invested in Contec Medical, which
develops multimedia information solutions for point of
care applications and NESS (Neuromuscular Electrical
Israel’s Medical Devices Sector
Innovative Devices
providing breakthroughs in
medical treatment
Nearly 300 companies in the field of Medical Devices in Israel make this industry one
of the leading centers in the world
MedTech