Israel Matzav

Pfizer invests $115 million in Israeli company

Here's your first Israeli technology story of the day....

American pharmaceutical giant Pfizer Inc. is investing $115 million in Israel's Protalix Biotherapeutics.

U.S. drug giant Pfizer is to purchase new technology and an experimental drug from Israeli biotech company Protalix BioTherapeutics. Protalix uses plant cells to make protein-based drugs, a system that experts say is safer than the animal cells currently used by major drug companies.

In addition, Pfizer will have worldwide rights – except in Israel – to sell a drug called taliglucerase alfa, used to treat Gaucher's disease, a rare inherited condition that damages the liver and bone marrow, sometimes leading to death. Reports said that Pfizer was spending as much as $115 million on the deal.

Globes, Israel's business daily, adds:

The irony is that the market attention and the backing given by a company like Pfizer could result in Protalix receiving an offer that it cannot refuse.

Barely two weeks ago, "Globes" reported that Pfizer had not yet hooked up in any meaningful way with the Israeli biopharmaceutical industry. As it turns out, the report came out even as Pfizer was finalizing its deal with Protalix.

Pfizer's executives are well aware of the potential of the Israeli biopharmaceutical industry, although they had not displayed the kind of enthusiasm shown by its peers. The Protalix deal may be start of a beautiful relationship between Pfizer and Israel.

I wonder how much they're investing in buying Egyptian drug companies. Heh.

As always, if you want to invest in Israeli technology, please drop me an email.

posted by Carl in Jerusalem @ 3:25 PM