Letting the brand down: Tech companies that hide their Israeliness help lose Israel the image war

David Gillis, "Letting the brand down. Tech companies that hide their Israeliness help lose Israel the image war" (21 December 2004, Globes Online)

Leading text: "Among the dismal facts and figures in a recent survey of Israel's image in the US are two surprising findings. One is that Americans don't think Israelis are bons vivants. The other, which was stressed by Wunderman EMEA vice-chairman and president David Sable when he presented the survey at the very lively session on "Israel as a Brand" at the Globes Israel Business Conference, is that Israel is not perceived as a source of innovation.

We sing and shout all the time about our cutting-edge high-tech, about our pharmaceuticals and biotech companies, about the medical devices developed in Israel, and the average American simply doesn't hear. For him or her (particularly him, according to the survey), Israel is assuredly a place of violence, of Holy sites, perhaps of kibbutzim and oranges, but not, apparently, of advanced technology. Which is a shame, because, according to Sable, inventiveness is an important quality to project in creating a positive image for a company or a country.

On second thoughts, though, should this disappointing finding be such a surprise? Is it not in part a result of deliberate policy on the part of Israeli companies?" [Read Full Article]

Behind Pharmos: The Hebrew University and Prof. Raphael Mechoulam have millions at stake in dexanabinol

Gitit Pincas, "Behind Pharmos. The Hebrew University and Prof. Raphael Mechoulam have millions at stake in dexanabinol." (20 December 2004, Globes Online)

Excerpt: "The dexanabinol saga has all the features for an excellent drama, which is why it has been attracted so much interest. The story extends beyond the confines of the local capital market, and even beyond Israel. The seeds were planted in the 1960s, when the drug was only a cannabis-based research project. Fast-forward three decades to an attempt by Pharmos (Nasdaq:PARS) to commercialize the drug. Mix in the capital market storm surrounding the company, investors dreaming about rosy futures, serpentine surges in the share price, speculators, short sellers, painful plunges in the share, short-term investors, long-term investors, people who merely want to run with the share, and those who believe that it's better to wait for 2007, when the steaming cauldron will approach its boiling point.

For many people, Pharmos is mainly a good capital market story. But over the next 24 hours, a critical moment in the company, it is important to remember that dexanabinol has immense medical and biological significance for patients for whom it might help. It will definitely boost research at Israeli universities and be integrated into research at commercial companies, provided that the results of clinical trial are satisfactory.

At the forefront of Pharmos is its chairman and CEO, Dr. Haim Aviv, who co-founded the company in the 1990s. But the man who worked with cannabis beforehand was Prof. Raphael Mechoulam, 74, and he and his research team may become very rich indeed. Yissum Research Development Company of the Hebrew University owns four of Mechoulam's cannabis-based patents that are the foundation for Pharmos' licenses to develop drugs.

Mechoulam does not own the patents, but he and other researchers are signatories to an agreement with Hebrew University that promises them a share of Yissum's revenue, excluding patent costs and other research expenses. Pharmos auditor Alon Michal says Yissum and Mechoulam will get 5% of all dexanabinol sales in royalties over 15 years from the date of the first sale..." [FullText]

Pharmos: Phase III Dexanabinol not effective against TBI, Shares fell 50+ percent before the bell

Globes correspondent, "Pharmos Phase III: Dexanabinol not effective against TBI" (20 December 2004, Globes Online)

Leading text: "Pharmos (Nasdaq:PARS) announced today top line results of its pivotal Phase III trial of dexanabinol to treat severe traumatic brain injury (TBI). As reported earlier today by "Globes", dexanabinol did not demonstrate efficacy as measured by the Extended Glasgow Outcome Scale (GOSE).
In pre-market trading, Pharmos shares have so far dropped to $0.85, meaning that they have lost nearly 76% of their value.

The double-blind, randomized, placebo-controlled trial was conducted in 86 trauma centers in 15 countries. In the 861 patient trial, 846 patients were available for analysis, 428 treated with dexanabinol and 418 treated with placebo. The randomization provided well-balanced groups for this study.

The company noted that the trial demonstrated an excellent safety profile with no evidence of excess side effects in the dexanabinol-treated patients. The company also noted that not all secondary endpoints have been analyzed; however, no differences were observed in mortality or in analysis of subgroups in the trial.
Pharmos chairman and CEO Dr. Haim Aviv said, "We are very disappointed and frankly somewhat perplexed that we did not observe any neuroprotective effect of dexanabinol in TBI..." [FullText]

Israeli biotech: Too many kitchens, not enough chefs

Hadass Geyfman, "Israeli biotech: Too many kitchens, not enough chefs" (22 December 2004, Globes Online)

Leading text: "Keryx chairman and CEO and new XTL director Michael Weiss: Israeli biotechnology has great potential, but is hampered by too many companies, a shortage of qualified executives, and short incubation periods for technology. At the end of November, Israeli biotechnology company XTL Biopharmaceuticals (LSE: XTL) notified the London Stock Exchange that Keryx Biopharmaceuticals chairman and CEO Michael Weiss was joining the XTL board of directors. This was not a routine announcement of a director’s appointment. Weiss was recruited by a group of investors that acquired a controlling interest in XTL in order to enable the company to achieve a breakthrough. The investor group, headed by Apex-Mutavim group joint co-owner Alex Rabinowitz, was aware that with his string of successes in biotechnology, Weiss was capable of contributing a great deal to XTL’s progress in both the biotechnology industry and the US capital market..." [Interview FullText]

Israel to sign agreement with Indian state

"Israel, Bangalore to ink high-tech deal" (10 December 2004, Jewish Telegraph Agency)

Excerpt: "Israel will sign an agreement with an Indian state to cooperate in high-tech, biotech and infrastructure, Trade Minister Ehud Olmert said. Olmert made the announcement Tuesday regarding the state of Karnataka, whose capital, Bangalore, is one of the fastest-growing technology hubs in the world. Some 500,000 people are employed in high-tech jobs in Bangalore, making it the second-largest global high-tech center in the world. Olmert is heading a delegation of 100 Israeli businessman visiting India, the Jerusalem Post reported." [FullText] [Jerusalem Post article (by subscription)]

Cutting corners in Research and Development

Haim Handwerker, "Cutting corners in R&D" (13 December 2004, Haaretz Daily)

Leading text: "A few weeks ago Ranan Lachman organized a symposium in the framework of the Israeli Business Forum of New York, inviting a number of Israeli professionals residing in the U.S. to participate. Lachman's goal was to present the work experience opposite Israeli biotech, to learn the lessons and examine ways to promote this industry.

Yael Cohen, who works as a scientist at Merck, told the participants that she had discovered an entrepreneurial atmosphere in Israel." The research is on a high level," says Cohen. "From the perspective of the number of scientists in the life sciences per capita, and the number of famous scientists, Israel is in one of the top spots in the world. Biotechnology receives priority from the government (after high-tech), but due to insufficient infrastructure and a lack of clinical knowledge, it is difficult for Israeli companies to bridge the gap between their advanced research knowledge and the development of drugs and their introduction to the market. Some 70 percent of the companies are young and very small (up to 10 workers). Only 25 percent of the companies have been around for over 7 years, and just over 30 percent are less than 2 years old. In a situation like this it is hard to push forward..." [FullText]

Quark Biotech Announces Discovery of Novel Target for Treatment of Ischemia-induced Retinopathy

"Quark Biotech Announces Discovery of Novel Target for Treatment of Ischemia-induced Retinopathy" (29 November 2004, PRNewsWire)

Leading text: "Quark Biotech, Inc. announced today the discovery and validation of a novel therapeutic target for the treatment of ischemia-induced retinopathy, a group of diseases that are the major cause of blindness worldwide, including diabetic retinopathy, retinopathy of prematurity and retinal vein occlusion. The discovery was published in the journal Investigative Ophthalmology and Visual Science, Volume 45 (10), pp 3796-3805.

In the study, a gene identified by Quark, RTP801, was knocked out in an animal model of retinopathy of prematurity (ROP). ROP is blinding disease that affects prematurely born babies. The ROP animal model is a well-known model of ischemia-induced retinopathy. Due to the absence of RTP801 expression in the
knock-out animal model, the development of retinopathy was attenuated, thus implicating the gene in the pathogenesis of the disease.

ROP and diabetic retinopathy are caused by diverse processes that lead to retinal ischemia, a condition in which the blood flow, and thus oxygen, is restricted in the retina. Reduced oxygen induces the formation of
morphologically abnormal vessels, (neovascularization), as well as neuronal death (apoptosis) in a layer of the retina, causing retinal degeneration. The retinal disease that develops in the model of ROP combines many features that characterize both ROP and diabetic retinopathy, such as retinal vaso-obliteration, neovascularization and neuroretina apoptosis. The RTP801 knockout-mice clearly demonstrated a significant attenuation of all these features, indicating that RTP801 may be a novel therapeutic target for treatment of these conditions.

"Proliferative diabetic retinopathy, with its major risk of vision loss, is believed to be secondary to ischemia, lack of oxygen or blood flow in the retina," commented Dr. Feinstein, Vice President Technology of Quark and
author of the study.

BioLineRx Awarded Israeli Government Grant of $21 Million

"BioLineRx Awarded Israeli Government Grant of $21 Million for the Development of Innovative Pre-Clinical Drug Candidates: National Grantee Status Reaffirms BioLineRx's Position as Israel's Leading Specialized Drug Development Company" (2 December 2004, Business Wire)

Leading text: "The Israeli Office of the Chief Scientist yesterday announced the selection of BioLineRx as the sole recipient of a $21 million grant for the development of pre-clinical compounds as part of a special initiative for the advancement of the Israeli Biotech industry. The initiative, launched by the Israeli Ministry of Industry, Trade and Labor, is designed to encourage the further development of innovative projects from Israeli universities, hospitals, research centers and early stage companies.

According to BioLineRx's CEO, Dr. Morris Laster, "BioLineRx's award of this new national status not only provides significant funding for development of additional pre-clinical compounds, but also reaffirms BioLineRx's position as Israel's leading specialized drug development company. The Israeli government's ongoing commitment to the Biotech industry will allow a larger number of innovative therapeutic projects to bridge the existing gap between promising early stage research and the clinical results required for partnering with global pharmaceutical manufacturers."

In the Israeli government's formal announcement released yesterday, Rina Pridor, Program Director, stated: "The BioLineRx group is an extremely professional one, combining rich technological know-how, management with wide ranging experience in the industry, significant financial depth and experience, access to sources of information and other strengths that will allow it to develop biotechnology projects into successful companies and products..." [FullText]

Biotech's trials and tribulations

Haim Handwerker, "Biotech's trials and tribulations" (13 December 2004, Haaretz Daily)
Leading text: "The great success of Israeli high-tech in the U.S., at least in the beginning, was due in no small part to the Israelis living in the U.S. and working at the centers of power: at the investment houses on Wall Street, the big American high-tech companies, the venture capital funds and the major law firms. An examination of most of the high-tech-related deals made there - whether stock issues, sales, acquisitions or product promotions - will usually reveal the involvement of an Israeli living in the U.S.

A similar phenomenon is currently evident in the biotechnology industry, in which Israel is considered a relative newcomer: Israelis residing in the U.S. who are experts in this field are trying to promote a connection with their homeland. ..."

Excerpt: "The U.S. administration's budget for developing drugs is $30 billion a year, whereas the Israeli chief scientist's annual budget for biotech totals only $400 million. A biotech company has to start out with $3-$5 million to cover its first two years." One problem is that Israeli companies start out with an average of just $600,000. Without significant connections abroad and with limited possibilities of raising private funding in Israel (there are only five local VC funds that specialize in biotech) - this sum clearly is not enough for setting up clinical trials, even on animals." [FullText]

Israeli Nobel Prize winner emerges from adversity

Sheldon Kirshner, Staff Reporter , "Israeli Nobel Prize winner emerges from adversity" (2 December 2004, The Canadian Jewish News)
Leading text: When the Royal Swedish Academy of Sciences selected Aaron Ciechanover’s as this year’s co-recipient of the Nobel Prize in chemistry, he was praised as the co-discoverer of the ubiquitin system, which governs the degradation and death of cells in the body. But the human drama of his life as an orphan growing up in the Israeli port city of Haifa under his aunt’s and brother’s care and supervision was omitted. So was the fact that he and his brother, Joseph (Yossi), have carved out spectacular careers for themselves, despite the untimely deaths of their parents within a six-year period. Ciechanover, 57, studied medicine at Hebrew University, was a post-doctoral fellow in the United States and is now a professor of biochemistry at the Technion-Israel Institute of Technology..."[FullText]