In a recent development, biopharmaceutical company Biogen acquired American start-up HI-Bio for $1.15 billion. The acquisition was made with the financial support of Israeli Arkin Bio Fund, which is part of Mori Arkin’s investment group, Arkin Holdings. This transaction came just five months after Arkin Bio made its initial investment in HI-Bio as part of a $95 million fundraising round in January. As a result of the acquisition, Arkin Bio’s stake in the company has increased to 4%, generating an estimated income of around $45 million with the potential for another $650 million if HI-Bio’s products are successful.
As part of its strategic decision to diversify its international investments in biomed, Arkin Holdings has been investing heavily in foreign companies over the past five years. The trend of Israeli biomed funds investing abroad has grown due to various factors such as expanded funding options and easier access to global opportunities. Despite concerns about the impact on Israeli companies, funds reassure that their knowledge of the local market positions them well to invest in strong Israeli companies as they grow.
While Arkin Bio and other funds continue to invest abroad, there are still domestic biomed firms like IBF, Peregrine Fund, and SBI JI Fund focusing on Israeli companies. These funds are working hard to cultivate a stronger product pipeline for advanced-stage companies and support their growth in Israel. However, with recent events like the global biomed market slowdown and ongoing conflict affecting Israel’s economy and healthcare sector, it remains uncertain how this will shape future investments in the biomed industry in Israel.
In conclusion, while there may be some uncertainty about where investments will go in the future of Israel’s biomed industry, it is clear that both domestic and international funds have an important role to play in supporting its growth and success. Finding a balance between these two approaches will be crucial for ensuring that Israel remains at the forefront of innovation and progress within this rapidly evolving field.
