Hadasit Bio Holdings Ltd. (TASE:HDST) wholly-owned portfolio company ProtAb Ltd. will receive $1.5 million from Pontifax Fund LP and Clal Biotechnology Industries Ltd. (TASE: CBI) at a company value of $4 million, before money. ProtAb is developing treatments for autoimmune diseases.
Hadasit Bio will invest an additional $1 million in the company and convert $1.86 million previously granted in convertible loans into equity. The conversion will be at a price 20% lower than the price of investment by Pontifax and Clal Biotech. When the deal is closed. Hadasit Bio will own 70% of ProtAb (50% on a fully diluted basis). It expects to report capital gain of NIS 3 million on the deal.
Half the investment will be made when the investment agreement is closed, and the rest within six months after the closing. ProtAb will use the proceeds to pursue development of its leading product, Proximab, a monoclonal antibody for the treatment of rheumatoid arthritis and other autoimmune diseases such as diabetes. The company is conducting animal trials on Proximab and is preparing regulatory and other procedures for human clinical trials.
Pontifax has $130 million and invests in Israeli life sciences companies.
Hadasit - the Technology Transfer Company of Hadassah Medical Organization owns 40.5% of Hadasit Bio. Hadasit Bio's share price rose 9.8% by early afternoon to NIS 1.34, giving a market cap of NIS 114 million.
Published by Globes [online], Israel business news - www.globes-online.com - on April 13, 2010
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