Research-based Strategic consulting for Life Sciences companies, Due Diligence, Business Analysis & Research for Investors, Biotech Consulting, Pharmaceutical Consulting, Industry & Technical Research Services, Israel Brain Technologies
Dr. Levi holds a PhD degree in Neurobiochemistry from Tel-Aviv University, and is the author of several published articles in leading scientific journals.
Bioassociate is a bio-consulting and research company providing services to life sciences companies and to investors thinking of investing in Techno-Bio Products, Compounds, Delivery Systems and more.
Bioassociate also have links with companies in the US, but are located in Israel.
The issues involved in Private/Public funding are key to understanding the core business values of the bio-world today.
Investment Management (Why Israel?)
There is a real need for analyst coverage of public life science companies in Israel, as there is a biased relationship of biotech and medical device R&D companies building dreams for investors in order to procure huge profits. There is a real need for information in order for people to understand and get excited about the technology, and not to be scared off due to previous bad experiences, or lack of knowledge. However, since many people don’t understand the risk involved, they stand to lose all their money.
Drug development proposes the opportunity to invest in progress, and investors with no knowledge about this field might be disappointed to actually hear that the field is well documented and you just need to know where the knowledge is, you need someone to guide you through.
I asked Dr Levi, if a company which is institutionally backed like Hadasit-Bio can crash: “Any holding company has the choice of which technology to invest in. If you choosea risky technology you can find yourself in a difficult situation.A company in the development stage needs to raise money every 18-24 months; if they don’t reach a significant milestone they will see a breach in response. For example, ApoSense: the company had an IPO lead by main shareholder Eli Horowitz at a valuation of 900 m nis, which was a huge valuation. The IPO was a success, however within 2 years the valuation of the IPO dropped to ~200m nis. Another example is D-Pharm that failed in phase 3 of the clinical trials: it failed to reach a milestone (clinical trial success), and its investors lost their money.
During Initial Public Offerings, the ‘responsible adult’, the underwriter, is in charge of valuating the company and pricing its shares. Oftentimes in the past, TASE life science IPOs have been fiascos due to lack of appropriate industry understanding on the part of the underwriters. Some bio-IPOs have witnessed the company value dropping by up to 80% post-IPO, even though everything was fine with the company. Huge expectations of IPO’s leads to the question, ‘then what’s the hype about if nothing is happening – i.e. no FDA approvals, no deals or sales. The way to increase understanding and minimize risk is through doing due diligence with industry experts.”
Reaching for Success
If you are choosing a new pipeline technology, if you are looking to learn the industry trends or take advantage of a technology you are interested in, Bioassociate is an industry expert, with the necessary expertise to comprehensively fill all strategic gaps in the life science business model.
Bioassociate can assist you if you are building a business model for a compound or a technology, and if you require services to assist with the process of setting up a new bio-business, or simply revolutionizing a temporarily grounded one. This might amount to core business change the company may require, in order to go from mediocre to successful.
The Human Factor
In the face of rising drug prices, the highest drug prices are reaching almost $0.5 million a year per patient. In some instances this is due to orphan indications, which are cases where less than 200,000 people suffer from a disease. This means that companies have to maintain their revenues by charging smaller markets more money. An example of this model is Hunter’s Disease where no more than 10,000 American’s suffer from it a year and the medical bill of one patient is $460,000 a year….and $1m in a few more years.
So, the question of how much is human life worth, or is human life worth anything or is it priceless comes to mind…
As an example, ALS is a disease which is becoming better known of late. Diseases like ALS, Alzheimer’s and Parkinson’s are being researched by companies looking to find a cure using Stem Cell technologies, and the like.
PUBLIC COMPANIES AND IPOS
Today, Israel has more companies trading on the NASDAQ than any country other than the United States, Canada and China. On the Tel Aviv Stock Exchange (TASE), life sciences represent the largest sector, with 57 companies—more than on the majority of similarly-sized markets around the globe. Several of the TASE life science companies are dually listed on foreign markets. In 2006 TASE established looser guidelines for research-based companies, resulting in an ever-increasing number of life science IPOs, with 5 companies going public in Israel last year alone.
The sheer momentum carrying the Israeli life science industry forward outpaces all other industries in the country, steadily propelling Israel towards the rank of one of the world’s top innovators. As demonstrated by the successes of the Israeli high-tech industry, the combination of entrepreneurial creativity and technical know-how is a potent mix. Under the right circumstances, with a certain availability of venture capital, life sciences in Israel have the potential to expand in size and market value to match the previous successes of the high-tech industry.
Israel Brain Technologies
“Just over a year ago I had the opportunity to join Israel Brain Technologies-a non-profit initiative led by Israel’s very own president Shimon Peres. IBT’s mission is to promote the country’s excellence in brain technologies, but perhaps what it symbolizes is even more enthralling: the omnipresent influence of life sciences in all aspects of Israeli life.
We at Bioassociate have been faithfully following the bustling scene that is the Israeli bio-arena for some time. The accomplishments of this young country already bear testimony to its potential: 40 to 60 new life science companies are established each year; 46% of the Israeli life science companies are less than 5 years old, with a further 34% of these young companies already generating revenue.
For a small country which boasts a biotechnologist for its first president, Israel has undoubtedly lived up to its high-tech reputation. With a highly skilled population, world-class institutions and renowned technology transfer centres, the state of the Israeli life science industry presents a vast opportunity. Its appeal lies in the unique combination of entrepreneurial human capital and dedicated government support.”