BioWorld International Correspondent

ZICHRON YA'AKOV, Israel - The Israeli Ministry of Industry and Trade is encouraging cooperation in its first two private biotechnology incubator, if a third incubator is added for the same budget.

Israeli Ministry of Industry and Trade (MoIT) Chief Scientist Eli Opper agreed to allow joint management by the two consortia that won the tenders to establish Israel's first two privatized biotech incubators - the Einav group, headed by the Ofer Brothers, and Yehuda and Zohar Zisapel's RAD Bioscience incubator group - under the condition that they establish a third "incubator branch" in the Negev under their combined management and for about the same budget. (See BioWorld International, June 12, 2002.)

Opper told BioWorld International: "The main reason for the suggestion was to encourage biotechnology development away from the center of the country to outlying regions, specifically by establishing a biotechnology incubator with government support in the Negev. This is a real benefit for the country." He added that the merger "will allow for a more efficient and more technologically advanced administration to promote biotechnology."

Whether they are called incubators or branches, this move creates three incubators for the price of the two grants awarded to the tender winners.

One of the tender winners said: "Almost three months ago, our two groups had discussed the current situation and we asked permission to merge into one management team, which would be stronger, more professional, of higher quality with the possibility of greater specialization than if we established the two independent incubators in Jerusalem and Rehovot. We asked for about 75 percent of the US$80 million that the two grants would cost - a considerable savings."

Roey Fisher, assistant chief scientist told BioWorld International that the third branch would likely be established in Beer Sheva or just to the south in Omer. He noted that "the three-for-two option will benefit all, including the depressed southern area and the taxpayer."

He emphasized that the recommendation to go ahead with biotechnology investment despite the current political situation was made because the country is looking at the long-range view, 10 or 20 years ahead, responding to a report made two years ago by the international consulting firm Monitor, which recommended that Israel jump-start its life science industry by allotting $45 million over four years to establish biotech incubators.

No agreements have been signed with the state yet, but the MoIT insists that the alliance will not impact the timetable for the establishment of the incubators.