web analytics
June 30, 2015 / 13 Tammuz, 5775
At a Glance
InDepth
Sponsored Post


The Israeli Dash to the NASDAQ

Shmuel Zysman

Shmuel Zysman
Photo Credit: Ranit Nachum-Halevi

“Nonetheless, people need to remember that investors are aware of all of these preliminary stages, and they set an investment goal which is right for them, especially when it comes to Israeli companies,” he said. “As I mentioned before, this is due to the relatively low price in which they offer their initial stock. On the one hand, the investors understand the risks that are on the table. On the other hand, they are aware that if the company’s IPO is valued at between $100-200 million, and if they develop a successful drug that is approved by the Food and Drug Administration, it will be worth billions of dollars, perhaps more.”

“For the investor, that means a potential profit of ten times the investment, perhaps more,” he said. “That is why he takes the risk. The stock markets of the world offer assistance to high-risk companies, and if the company comes fraught with risk, my opinion is that it is preferable if that company deals in bio-tech because it’s a win-win situation. Everybody gains. If these companies succeed, the entire globe would benefit, with the development of a product and from a financial standpoint, with investors and the stock market benefiting. If the company fails, at least science will take a step forward, and there’s no doubt that mistakes are to be learned from. In my view, this is also a gain from a social standpoint.”

What is the rate of success for Israeli biomed companies as opposed to foreign biomed companies?

“When you look at the statistics of success, you need to look at two main things: Do the Israeli companies produce a product that competes with other companies or not? I don’t know of such a statistic, but from this standpoint I don’t believe there’s much of a gap. Another marker that defines success is the profit made by the investors. At least in the first wave of IPOs, it was easy to notice that the price of Israeli companies was climbing higher, which is something that was perceived as an economic success and which produced great returns for investors. Once money comes into the coffers of a company and it could continue to develop its product, there’s no doubt that it makes the value of the company higher.”

What considerations come into play when choosing the investors and the backers? Does it have anything to do with being on the NASDAQ? Is it any different than the IPO in London? Do the funds come from private investors and funds?

“The world of biotech needs a lot of money. The capital market in every country needs a tremendous amount of money in order to try and help. In the last 10 years, the amount of institutional money and funding from risk-management funds has dropped significantly. This is a worrying fact that should be a warning sign over the state of the market, and this could endanger scientific development. The repercussions of this are global. So all of the critics who are complaining that the biomed companies are “rushing to get their shares traded on the stock exchange” are expressing criticism that is unfounded, because the capital market is one of the few existing solutions today for these companies, enabling them to continue with research and development. It’s not a question of being an alternative. Today, it’s the only alternative. As for stock markets, the best stock market is the NASDAQ. The market there is big, the big money is there, and if a company wants to succeed, that’s the place to do it.”

Do you believe that the biomed field could be the next big thing in the years to come?

About the Author: Ranit Nachum-Halevi is a consultant to real estate companies, and former senior real estate correspondent for The Marker, Haaretz's daily financial supplement. She has been working in Israel's media for more than 15 years. You can reach her at ranit.nh@gmail.com.


If you don't see your comment after publishing it, refresh the page.

Our comments section is intended for meaningful responses and debates in a civilized manner. We ask that you respect the fact that we are a religious Jewish website and avoid inappropriate language at all cost.

If you promote any foreign religions, gods or messiahs, lies about Israel, anti-Semitism, or advocate violence (except against terrorists), your permission to comment may be revoked.

No Responses to “The Israeli Dash to the NASDAQ”

Comments are closed.

Current Top Story
Tzvi  at Cemetery of Mount of Olives
Jewish Press Blogger Stoned on Mount of Olives!
Latest Indepth Stories
Menachem Zivotofsky sued the U.S. government because the U.S. refused to include "Israel" alongside "Jerusalem" as the place of his birth on his passport. So far the courts have sided with the government.

The problem with US treatment of Israel did not start with Obama but with birth of Jewish State

Activists on the Marianne boat that the IDF made sure to arrive in Ashdod instead of Gaza.

The pathetic failure of the Marianne to reach Gaza is the best thing that has happened to Israel since Hamas mis-fired a rocket on its own civilians.

Pres. Rivlin and PM Netanyahu with the justices of the Supreme Court

Wonder why Israel has the world’s most insane rules of engagement imposed on its military? Read on..

obamatargetiran

Think political Islam’s a problem now just wait until an Islamist nuclear umbrella covers the region

Fiorina’s wrong about Islam which embraces our death&destruction confusing pc theories for hard fact

Bangladesh PM Hasina is fighting terror not only for her nation but for the entire civilized world.

No necessity to redefine marriage, just address equal rights for couples in non-nuclear families

PM Netanyahu has pledged the nation won’t rest until the hero Eli Cohen is returned home to Israel

“Palestinian armed groups” & “local authorities” are named in the report; Hamas’ absence stands out

Dating apps have really changed the way many young Jews approach dating.

The families of those slain even publicly forgave the murderer. Charleston was serene and at peace.

Changing plans needn’t be a frustrating experience. Sometimes the new path proves far more rewarding

Seventy-one members of the Assembly, including Glen Cove Assemblyman Chuck Lavine, who heads the New York chapter of the National Association of Jewish Legislators, joined in the effort to secure a majority to protect the rights of Jewish voters.

Students in New York City schools are protected by publicly funded security guards, so it would seem a no-brainer that students attending non-public schools be similarly protected.

More Articles from Ranit Nachum-Halevi
On the beach

Israel’s coastline may be short, but there are still some real estate pearls waiting to be realized, offering cheap alternatives for sea front living. All you have to do is go further from the boundaries of Tel-Aviv and the Dan Block.

Meir Shitrit speaks with the press.

Nave and Golan are advisors helping Meir Sheetrit run for president. As professionals who lead campaigns and shape public opinion, they cite the press as a major factor in this campaign.

Israeli biomedical firms look back on a successful year on Wall Street. Are we bearing witness to “the new tech”?

The romantic skyline of Jerusalem is disappearing. Is Jerusalem on its way to becoming a modern city? Or is it losing its special character?

Government plans to market 12,000 new apartments in Modi’in, where prices haven’t stopped rising in recent years.

It’s a boom: some 100,000 housing units will replace military camps in the high-value center of Israel.

Printed from: http://www.jewishpress.com/indepth/analysis/the-israeli-dash-to-the-nasdaq/2014/05/01/

Scan this QR code to visit this page online: