Israel Health-Care Deals Almost Doubled in 2013, PwC Says

Israel’s life-science industry posted a record year in total deal size as companies benefited from a boom in U.S. investment, PricewaterhouseCoopers Israel said in a report.

Health-care companies, with $2.5 billion in transactions, grabbed the biggest share of $7.6 billion in Israeli technology deals worldwide this year, PwC Israel said. That was up 92 percent from $1.3 billion in 2012, according to the report.

Israeli companies, which stayed on the sidelines following the 2008 global financial crisis, experienced a major thaw in the IPO market in 2013. In June, Kadimastem Ltd., a developer of stem-cell therapies, became the first company to list on the Israeli bourse since the end of 2011 after a record 56 IPOs in 2007, exchange data show.

“The hot market for life science IPOs is reflected in the record outcomes of the Israeli life sciences industry exits during 2013,” Claudio Yarza, head of the Life Science practice at PWC Israel, said in the report. While there are other local companies seeking deals or readying IPOs, there are also “preliminary signs of a cooling down of the life sciences IPO market in the U.S.,” he said.

Mergers and acquisitions accounted for $6.45 billion of the total deals figure while IPOs were $1.2 billion, according to PwC Israel.

Enzymotec Ltd., a maker of medical foods, raised $71 million while Ltd., which provides online tools to create websites, raised $127 million in the nation’s largest IPO in the U.S. in more than six years.

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