Israel has been blessed with an abundance of talented, innovative and groundbreaking researchers. Goldman Bio has recognized the opportunity to invest in early-stage companies in the field of oncology, combining the creation of economic value with activities for the common good.
38% of the IPO’s on the Nasdaq are of Biotech Companies
Behind Goldman Bio Limited Partnership is a group of Israeli businessmen who have come to the realization that there is significant entrepreneurship especially in advanced research and development activities in Israel. However, the Israeli market is not yet ripe to help these companies, and many of them are failing to reach maturity, even if the underlying idea behind them is a real breakthrough.
In order to locate the most promising companies and assist in their business development, Goldman Bio’s management consists of executives that have extensive experience in both the world of medicine and the world of business. On the medical side, you can find Prof. Tamar Peretz, a world-renowned expert in the field of breast cancer, and former director of the Sharett Institute of Oncology at the Hadassah Medical Center; Prof. Raphael Catane, former president of the Oncology Institute at the Sheba Medical Center; and Prof. Ido Wolf, head of the Oncology Division at the Tel Aviv Sourasky Medical Center.
The business side is headed by the Chairman Mr.Dror Nagel, former CEO of Azorim, who has also held senior positions in the fields of banking and insurance; the Chairman of the Investment Committee Mr. Ron Mayron, former CEO of Teva Israel; and Managing Partner Dr. Gil Pogozelitch, who has been involved for many years in developing medical technologies and data analysis, in order to provide advanced answers for cancer patients, beyond the traditional scope of such technologies.
Indeed, looking at the United States provides a glimpse into the broad potential of companies operating in the field of cancer research. In 2019 alone, a record number of IPOs and mergers and acquisitions of bio-pharma companies with market values of more than $ 1 billion were registered in the US.
The data shows that out of 254 companies that were successfully issued on the NASDAQ from the beginning of 2019 to June 2020, 97 companies were from the biotech sector – that is, 38% of all the issues. According to a report by Silicon Valley Bank released to the general public in mid-2020, the value of biotech companies before an IPO is on the rise, and after the IPO their share prices soar. In the first half of 2020, the report states, the pre-IPO valuations increased by 36% compared to 2019. The amounts raised have more than doubled every year since 2015 … the IPO’s of companies in pre-clinical and Phase 1 stages grew to 50% (13 out of 26 issues in the first quarter of 2020, led by companies in the field of oncology) “.
The report further states that “the issues in the field of biopharmaceuticals in the first half of 2020 are on their way to catching up with the amounts raised through issues in 2019, and this continues an impressive streak of three years. Pre-IPO valuations rose at a record pace in the first quarter of 2020, and stock prices after the issues jumped by more than 89%.”
The Tel Aviv Stock Exchange is Changing Face
On the way to achieving its desired goal, Goldman Bio also brought about a significant change in the stock exchange’s regulations regarding the issuing of certain companies in Israel. “We realized about a year and a half ago that, in Israel, public offerings can only be made of partnerships that deal with gas and oil exploration, or the making of movies”, Mr. Nagel explains. “But the main resource we have in Israel is R&D. It made no sense that the option to issue an R&D Partnership is not be available to entrepreneurs. This is a huge market failure, as there is no solution for young companies seeking funding for their research.”
Dr. Pogozelich added “Therefore we initiated an amendment in this area, and received strong backing from the Securities Authority, the Stock Exchange, the Tax Authority and the Innovation Authority, that all supported this idea. Within a year we were able to persuade these authorities to change the regulations. R&D Partnerships can now be issued on the TASE, and we are very proud to have been the ones who opened the door.”
The full article in The Marker, Here