TEL AVIV/ ATLANTA, February 22, 2009 – Dozens of emerging Israeli healthcare technology companies will meet in Atlanta, Georgia, this week to participate in a groundbreaking conference focused on harnessing the latest TeleHealth technologies.

The first ever U.S. - Israel TeleHealth Business Exchange (www.usisraelexchange.com), to be held February 24-25, will present an unparalleled opportunity for emerging TeleHealth technology companies in Israel to present their innovations to leading companies in North America and participate in pre-arranged and pre-qualified meetings with the aims of furthering joint venture R&D, investment and marketing alliances.

“Georgia, a leader in the field of TeleHealth, has recognized the great potential that Israeli technology brings to this growing industry,” said Sherwin Pomerantz, Georgia’s Trade and Investment Representative in Israel. “This unique event will provide Israeli companies with the opportunity to interact with America’s top healthcare providers, the first step toward entry into the U.S. market.”

Featured technologies will include those used by patients and/or their families to improve the management of chronic disease in the home, such as patient-centric information systems, remote monitoring, patient education, and patient-provider interaction. Israeli companies invited to participate in the event include MediTouch, Vaica Medical, OrSense, Aerotel, ETView and 2P2D Solutions.

In addition to its unique meeting and networking environment, the TeleHealth Exchange boasts top industry speakers such as Newt Gingrich, former Speaker of the US House of Representatives and the founder of the Center for Health Transformation, and John Oxendine, Georgia’s Insurance Commissioner and founder of the Georgia Partnership for TeleHealth. Other speakers include Mikael Ohman, Senior Vice President, Strategy & Business Development of McKesson Technology Solutions, and Rhonda Chetney, Director of Clinical Support Services of Intel Health.

“Israel is one of the world’s most dynamic sources for high tech companies with original and cutting edge technologies, particularly in the field of medical devices and information technology,” said Rick Litzky, event chairman and President of Medical Director Solutions, LLC. ”The challenge is that while many of them have created extremely innovative technologies and services, it is often difficult for them to get noticed by the market here.  We created this event to help Israeli companies navigate the US market, to bring the latest technologies to key players in North America, and out of a desire to better serve the critical healthcare challenges in our country.”

The event, organized by the American-Israel Chamber of Commerce, Southeast Region (AICC), will be hosted by Blue Cross-Blue Shield of Georgia at its headquarters in Atlanta.  For full event details, please visit http://www.usisraelexchange.com.

Georgia is home to the world-class healthcare institutions and innovators, including Centers for Disease Control and Prevention (CDC), the premier public health institute in the world, as well as CARE, the Carter Center, the American Cancer Society and the Arthritis Foundation.

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There is no question that the hottest start-up industry in Israel is the medical device space. We continue to see M&A in that space and today Globes is reporting that US giant Medtronic is close to buying Ventor for $300 million. This is another feaher in the cap of the Israeli entrepenurial spirit, that even in bad economic times can keep pumping out these companies that get acquired.

This trend may have legs, as many multinationals have chosen to outsource their R&D in order to keep costs down, and will spend money to acquire new technology.

According to Globes: ” Medtronic has previously invested over $10 million in the start-up. Ventor has raised a total of around $20 million, so investors will see a return of over 12 times their investment. For the Israeli investors who invested in the company at an early stage, the return can be even greater. Ventore has developed an aortic valve prosthesis. The prosthesis can be implanted into a beating heart using a catheter, under local anesthesia. The valve has a unique geometric shape that improves hemodynamic performance.”

No question that this is cutting edge technology, and more is on the way.

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So it seems that Israeli hi-tech innovators view the best potential investments in Israeli bio tech. That may be how you can explain that Saifun Semiconductor founder Dr. Boaz Eitan and his wife, Tally Eitan, have put down $1.4 miilion dollars to buy drug delivery company Q-core. The Eitan’s plan on investing another $5 million dollars and save the jobs of all the employees.

According to Globes: “Q-Core has four product lines, all of which have US Food and Drug Administration (FDA) approval. They include an infusion pump, an enteral feeding pump, a veterinary infusion pump, and a range of accessories. Q-Core went into receivership when its shareholder, Core Capital, which mainly comprised a group of private North American Jewish investors, unexpectedly fell into financial difficulties and stopping funding the company. The cut-off happened just when Q-Core was about to begin sales, having completed the development and certification stages of its products. Q-Core has an immediate $900,000 order for its products and an orders backlog amounting to $12 million for the next two years, but lacked the cash to finance the production of the goods ordered. The orders are from the US, Europe, and Japan.”

Looks like it may be a good investment. To get a company with a large backlog, for a relatively small amount, may mean that the Eitan’s may enjoy another great exit.

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Aaron Katsman
IsraelNewsletter.com

Once again Israel has demonstrated that what it lacks in natural resources it more than makes up for in brainpower. Lucky for the world that it’s a renewable resource. News that Azilect, a drug that is co-developed by Teva Pharmaceuticals (TEVA), has been successful in the treatment of Parkinson’s Disease, is another in the long-line of cutting edge innovations produced in Israel, and exported to the the rest of the world.

According to a report in Haaretz: “Azilect, which is the brand name for rasagiline, was tested in 1 milligram tablets as a treatment for Parkinson’s Disease. Teva said yesterday that the drug can actually slow the disease’s progression, which can’t be said for any other therapy for the so-far incurable nervous system condition.”

For Teva, this drug has the potential to generate $1billion is sales, and be a mega-drug. Teva, biggest generic drug company in the world, has also turned into a R&D powerhouse focusing on neurological diseases. Copaxone, another Teva product which treats Multiple Sclerosis, has turned into the number 1 global treatment in the fight against MS.

For the more than 4 million Parkinson’s sufferers, this breakthrough could be life changing. Teva hopes to get regulatory permits to sell the drug not only as a treatment of the disease but also as a way to slow down the progression of the disease. They are shooting for the end of ‘09 to get the permits. For both investors and Parkinson’s sufferers, let’s hope they get the permits sooner rather than later.

Disclosure: Author’s fund has a position in TEVA as of 6/17/08.

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Aaron Katsman is Managing Editor of the Israel Opportunity Investor newsletter. He is lead portfolio manager for the Israel Growth Portfolio and Managing Director of America Israel Investment Associates, LLC. For more information, go to www.israelnewsletter.com or call 1-888-327-6179, or email aaron@profile-financial.com.

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