BIRD to invest $12 mln in 14 Israeli-US projects

The projects are valued at over $32 million. US participants include The American Red Cross, Cleveland Clinic, Quintiles, Air Liquide, Archer Daniels Midland, Wind River and Netro. 40% of the projects focus on Life Sciences

The Israel-US Binational Industrial Research and Development Foundation (BIRD), has approved investment of approximately $ 12 million in 14 new projects with total budget in excess of $ 32 million. The investments were approved at the semi-annual board meeting, held on Thursday in the US.

Among the prominent US companies participating in the projects are: The American Red Cross, Cleveland Clinic, Quintiles, Air Liquide, Archer Daniels Midland, Wind River and Netro.

BIRD reports that six of the approved projects, about 40% of the total number, focus on Life Sciences and Healthcare. Two are aimed at the development of drugs for malignant diseases, such as breast cancer and nervous system degeneration diseases. Drug development, as is well known, is an expensive and lengthy project and the BIRD Foundation has chosen to focus on its initial stages. The other projects deal with medical devices, industrial use of enzymes and medical database systems.

One of the approved projects brings together Visuality Systems, a young Israeli start-up with expertise in client-server tools development for the computerized embedded systems and Wind River Systems, its US partner and one of the leading companies worldwide in software development applied to embedded systems. The two companies will jointly develop a software product which will connect between electronic instruments such as printers, digital TV sets, communication equipment and calculators such as Palm Pilot for sharing information. This product will enable end-users to install, interface, share and control the instruments employing simple commands.

Another interesting project, which focuses on the medical database system field, is a cooperative effort between MSM –Medical Systems Management, the US partner and Contec Medical, from Israel.

The companies will jointly develop a software system to manage the medical file of a patient who is undergoing an operation. Contec Medical’s expertise is in clinical data capture, and the expertise of the American company is in software integration and data management for the Healthcare industry.

The products of the two companies will be merged into an upgraded integrated system to manage operating rooms, which would be connected to the hospital’s central information system.

The largest gas company in the world, Air Liquide, which builds and operates gas separation systems in the petrochemical industry, will perform a joint project through its subsidiary MEDAL, with the Israeli start-up company Carbon Membranes Ltd. CML has developed and produced hollow carbon fiber molecular sieve membranes for various gas separations. The project is based on an innovative technology for separating propane from propylene.

This technology is intended to replace part of the expensive, energy consuming splitters in use today for separating propylene, a principal raw material used in the petrochemical industry, and in production of the widely used plastic polypropylene.

The developed product will bring about considerable savings in both investment and production costs of refineries and polypropylene production facilities.

Dov Hershberg, BIRD’s Executive Director, said: “Despite the global market crisis and the uneasy situation in Israel, 8 leading American companies are participating in these projects. This fact testifies to the attractiveness of Israeli technology and to the confidence these companies have in the Israeli hi-tech industry.”

Hershberg adds, “The approved projects show that activity in the Israeli Life Sciences field continues to increase – both in drug development and in medical devices. The hi-tech crisis, particularly the reduced amount of capital available from VCs and other investors, has led to an increased number of applications to BIRD for support from Communications, Internet and IT companies.”

The Israel-US Binational Industrial Research and Development Foundation, BIRD, was established by the two governments in 1977. BIRD works closely with the Office of the Chief Scientist (OCS) at the Israeli Ministry of Industry and Trade, and with the US National Institute of Standards and Technology (NIST). Both are represented on BIRD’s board of governors, and the chairmanship of the board rotates between the two.

The Foundation undertakes, at no cost, to find strategic partners for the development of joint products. BIRD funds up to 50% of a project ‘s budget, from the R&D stage to initial marketing, without taking equity. If a project fails to reach commercial realization, BIRD does not request any repayment of its grant.

Since its establishment in 1977, BIRD has given support of more than $180 million to about 600 projects, which have generated sales of over $7 billion.

Published by Israel's Business Arena on June 24, 2001

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