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U.S. Investment Banking House and Israeli Firm Loin Forces for Scientific Projects

February 12, 1981
See Original Daily Bulletin From This Date

The E.F. Hutton Group, Inc., a leading U.S. investment banking house, and the Yeda Research and Development Company of Rehovot, which is connected with the Weizmann Institute of Science, have joined forces to market products based on scientific projects carried out by the Institute.

Yeda will promote the projects covering drug development, agriculture and medical instruments. E.F. Hutton will raise $25 million over the next five years from large institutional investors, such as insurance companies, mutual funds, commercial banks, and some wealthy individuals.

Hutton has created a company in Israel, called Taglit, Inc. (Discovery, in Hebrew) to channel the funds for 19 research projects initiated by the Weizmann institute. They include research on interferon monoclonal antibodies, a new anti-viral vaccine, synthetic antigens, diagnostic instruments, animal toxology and new genetic types of wheat.

Yeda general manager Aharon Meytahl told the Jerusalem Post that one of the purposes of the venture with Hutton is to “ensure Israel has a share in the big multi-billion dollar markets we see developing in the field of biotechnology.” He said it would not result in a brain-drain from Israel but instead, “we expect many Jewish and other American scientists to come here and work on projects.”

Meytahl said the patents covering the project would remain with the Weizmann Institute while Taglit will receive license and pay royalties to manufacture and market the projects being developed. All the manufacturing will have to be done in Israel, unless Yeda specifically consents otherwise, he stressed. “Another condition imposed by the contract just signed is that the general manager and chief scientist of Taglit must reside in Israel,” Meytahl said.

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