Israel BioMed Superpower - Medtronic GE Health and Change Healthcare
Medtronic, GE Healthcare & Change Healthcare Receive NIS 120 Million Grant over the Coming Six Years from the Israel Innovation Authority and Ministry of Economy and Industry to Expand R&D Centers in the Fields of Biotechnology and Medicine
Israel continues its path towards becoming a major player in biomedical technology following vote of confidence in Israeli ecosystem from three life science giants
Jerusalem and Tel Aviv. July 18th, 2018 – Eli Cohen, Israeli Minister of Economy and Industry: “The decision by these three multinationals to operate in Israel is an important vote of confidence in the State of Israel and the Israeli economy. Expanding these R&D centers will help position Israel as a leading player in the field of biomedicine, while creating high quality jobs in the fields of engineering and manufacturing, generating additional exports worth billions of dollars. These three companies join 320 other foreign multinationals active in Israel, positioning the country as an international leader in innovation and as an attractive hub for global companies.”
Aharon Aharon, CEO of the Israel Innovation Authority: “The new activity is expected to provide a significant boost to the biomedical field in Israel and to facilitate growth in new directions, creating prominent international centers of excellence along with significant local capabilities in these growing fields. These R&D centers will bring unique knowledge and experience to the local workforce and will serve as the basis for the continued growth of Israel’s innovation ecosystem and Israeli companies growing here.”
After a marketing campaign undertaken with the Foreign Investment and Industrial Cooperation Authority at the Israeli Ministry of Economy and Industry, and a competitive process held by the Israel Innovation Authority that included a review over several months of a number of proposals, the three companies were selected to participate in the program to expand R&D centers of multinational companies in biotechnology and medicine. As part of the program, the Authority approved funding of NIS 120 million over the next six years.
The program reinforces several significant aspects of the Israel Innovation Authority’s activities:
- The program is a significant boost to the field of digital health, in support of the March 2018 government resolution to establish Israel as a leading international hub for global leaders in this field.
- The program significantly bolsters the presence of important multinational leaders in the fields of medicine and medical equipment, establishing long-term presence of these players in an important and growing field, with significant impact on Israeli companies and the Israeli workforce.
- The program injects key new intellectual property to Israel, expected to generate significant income from future taxation.
The companies chosen to participate in the program:
One of the world’s leading suppliers of digital health solutions, with $3.3 billion in annual revenue. In coordination with its clients and partners, the company leverages its software and data analysis-based solutions and its network and technology-led services in order to provide patients better care and the ability to make sense of the medical options they face. As a central player in promoting a value-based healthcare system, the company is leading the vision toward improvement of the quality of life and health for the entire population.
Change Healthcare’s unique Intelligent Healthcare Network™ helps with managing clinical and administrative processes and financial transactions for hundreds of thousands of organizations and related parties in the medical industry, including doctors, hospitals, government and commercial insurers and other healthcare providers. The company is responsible for the management of financial transactions valued at more than $2 trillion annually.
Change Healthcare has a development center in Israel established in 1993, with more than 100 employees, developing monitoring and information systems for the field of cardiology. These solutions constitute part of the total array of products the company produces for medical imaging, installed in more than 3,300 hospitals around the world, where 68 million imaging procedures are conducted each year.
The new activity is expected to promote other fields in which the company is active and give a significant boost to the digital health ecosystem in Israel, while building significant local capabilities in these fields and imparting unique experience to the local workforce.
The new activity will offer employment to dozens of people in a wide range of innovative fields of activity. The Authority is expected to grant NIS 20 million in support of these activities over the next 6 years.
GE Healthcare, the health division of General Electric, was founded in 1994. The company is headquartered in Chicago and it employs 54,000 people around the world, with sales reaching $18 billion annually. The healthcare division began activity in Israel in the late 1990s, when it acquired Diasonics Vingmed Ultrasound and Elscint from Elbit Imaging. In 2011, GE Healthcare acquired Orbotech’s sensors for nuclear medicine and other types of imaging. The company employs 410 people in four centers located in Tirat HaCarmel, Tel Aviv, Herzliya and Rehovot.
In Israel, GE Healthcare develops and produces systems in the fields of ultrasound and nuclear medicine (CT/SPECT) and will expand its activity in the field of PET-CT, medical imaging for the identification of cancerous tumors in a device combining computerized tomography (CT) and molecular imaging technology called PET, where imaging is done after radioactive material is injected and absorbed by cancerous cells.
The new activity is expected to significantly bolster the multinational corporation’s presence in Israel and to establish long-term presence in a growing, unique and important field, while greatly impacting the establishment and growth of Israeli companies, imparting unique experience and knowledge to the local workforce employed in these fields.
The company intends to expand and deepen its activity in Israel and to employ 100 new people in the fields of engineering and manufacturing, as well as many subcontractors. In addition, the company will invest in expanding its field of activity in Rehovot and in Tirat HaCarmel and will renovate and expand its existing facilities, as well as lease a new facility. The scope of support from the Authority is expected to be NIS 50 million over six years.
Medtronic, founded in 1949, is today one of the world’s largest companies in the field of medical devices.
The company is headquartered in Dublin, Ireland, and its operational headquarters are in Minnesota, USA. Medtronic employs 85,000 people around the world, with annual revenues around $30 billion. In Israel, the company employs 800 people in Yokneam, Jerusalem, Herzliya and Petach Tikva.
The center in Israel will focus on developing imaging systems for laparoscopic surgeries (MIS). Medtronic is expected to deepen its activities in Israel for many years, adding significant capabilities to Medtronic’s global development facilities. Its field of operations is important and growing, and presents unique potential for the Israeli economy. The company’s long-established presence in Israel and the unique and significant knowhow and experience gained by Israeli employees will have significant impact on the establishment and growth of Israeli companies in the future.
Expanding Medtronic’s activity is expected to provide employment to dozens of employees in the fields of development, engineering and manufacturing. Support from the Israel Innovation Authority is expected to reach NIS 50 million over a period of six years.