WuXi AppTec Opens Israel Office, Partners With Pontifax
By Cyndi Root
WuXi AppTec, a contract research organization (CRO), has opened an office in Israel and partnered with Pontifax to develop Israeli biotechnology. WuXi announced these developments in a press release, stating that its facility will be located in Tel Aviv, Israel and will market WuXi’s R&D services to Israeli clients. Pontifax has agreed to invest in WuXi pharmaceuticals, treatments, and technologies developed with Israeli entities.
Tomer Kariv, CEO of Pontifax, said, "We welcome WuXi's presence in Israel and believe the new representative office will be mutually beneficial to WuXi and the Israeli biotech industry.”
Dr. Ge Li, chairman and CEO of WuXi PharmaTech, said that his company valued Ponitfax’s expertise in Israel's biotech industry. WuXi hopes to help Pontifax contribute to Israeli biotech by helping entrepreneurs and start-ups in the life sciences industry and develop innovative treatments for WuXi. Additionally, WuXi states that Israel has a dynamic healthcare ecosystem that WuXi is glad to join.
Indeed, the company decided to open an office in Israel because of the healthcare system and the possibilities for innovation in the country. In a report from Market Research titled, “Israel Pharmaceuticals and Healthcare Report Q2 2014,” analysts state that the industry is developed, export-driven, and attractive to multinationals. Israel needs specialty treatments, providing an opportunity for innovative agents. The country has high per-capita spending on pharmaceuticals, large urban populations, and a high proportion of older people. The market size is ILS 7 billion ($2 billion), but is not expected to grow substantially.
The Israeli pharmaceutical industry is suitable for market penetration due to the demographics of the population, the regulatory procedures, and the healthcare infrastructure with its reimbursement policies. Edouard Cukierman, chairman of Cukierman & Co. Investment House and managing partner of Catalyst Investment Funds, said in The Times Of Israel, “China has become the number one investor in Israel. For them, Israel is a great source of technology to help them develop their economy, while for us, it’s a fantastic opportunity to gain entry into the biggest market in the world.”
WuXi Activities
WuXi AppTec, a subsidiary of WuXi PharmaTech, has operations in China, the United States, and now Israel. Recently WuXi licensed cancer assays, bioanalysis methods, and metabolism services to expand its service offerings. In October 2014, WuXi licensed genomic profiling, targeted therapies, and comprehensive diagnostic tests from Foundation Medicine because oncology studies are expected to grow in China. Also in October, WuXi acquired XenoBiotic Laboratories (XBL), a New Jersey-based CRO, and its small molecule and biologic method development process.