OrbiMed, the world's leading asset management firm in the global health sciences industry, will form a $200 million fund which will invest in research and development in the Israeli life sciences industry.
The new fund is the result of a collaboration between OrbiMed and the Israeli government. The Finance and Industry, Trade and Labor ministries issued a bid offering global venture capitals funds to form an investment fund in Israel.
OrbiMed won the bid after raising $160 million in the private market. The State will invest the remaining $40 million for the fund's foundation.
According to the agreement, a significant part of the investments will be directed at biotechnology – the development of medications using biological means found in living organisms, which has been identified by the State as an area with outstanding infrastructure in Israel, which is not utilized to the fullest.
OrbiMed's activities in Israel will be led by three Israeli partners: Dr. Nissim Darvish, Erez Chimovits and Anat Naschitz. OrbiMed Israel will work in full coordination and cooperation with the global fund, which will allow the portfolio companies to enjoy the experience accumulated in the global company, as well as its international deployment in the United States, China and India.
Finance Minister Yuval Steinitz announced the fund's establishment in Jerusalem on Wednesday, saying that he "hopes that our efforts will bear fruit and that the biotech industry continued to develop."
Outgoing Accountant-General Shuki Oren noted that "the way built the bid made one of the world's best funds decided to open an Israel office with an Israeli team. I believe this is one of the proper models for governmental intervention – using specializing private elements and attracting investments by changing the investors' risk profile."
- Follow Ynetnews on Facebook