Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) has invested an additional $6.5 million in Andromeda Biotech Ltd., while Clal Biotechnology Industries Ltd. (TASE: CBI) has invested $3.5 million.
Clal Biotech has undergone two major changes. The first is the acquisition of the 50% controlling interest of its parent company Clal Industries and Investments Ltd. (TASE: CII), which owns 56% of Clal Biotech, by Len Blavatnik from Nochi Dankner. The takeover should not have an effect on Clal Biotech in the short term, but in the long term, Blavatnik's Access Industries Inc. may try to bring Clal Biotech closer the Access Industries' foreign activity. The other event was the appointment of Dr. Jeremy Levin as president and CEO of Teva, which owns 14% of the company, and collaborates with major portfolio companies on their drug development programs.
Levin promised to review all of Teva's innovative drug development programs, and may amend or close some of them. Andromeda seems to have passed the test. CureTech Ltd., in which Teva owns an 80% stake, also appears to be in good shape.
As for chronic wound treatment developer Mediwound Ltd., in which Clal Biotech owns a 52% stake, Teva will probably decide whether to exercise option to acquire the controlling interest after the European Medicines Agency (EMEA) decides whether to approve its product in early 2013.
Oncology company Gamida Cell Ltd., in which Clal Biotech owns a 22% stake, Teva has committed to finance half of the venture's cancer drug development operations. However, Gamida Cell has reported that it is seeking a partner to market its product. The partner is probably not Teva.
Clal Biotech invested NIS 34 million in its portfolio companies during the second quarter, mostly in Gamida Cell and Biocancell Therapeutics Ltd. (TASE:BICL), another oncology company. Other parties invested NIS 49 million in the portfolio companies, mostly in Gamida Cell and Avraham Pharmaceuticals Ltd.
Clal Biotech narrowed its net loss to NIS 9.9 million for the second quarter of 2012 from NIS 26.4 million for the corresponding quarter of 2011. The lower losses were due to the revaluation of financial assets, increased financing income, and lower administrative expenses. Revenue rose to NIS 33.7 million for the second quarter from NIS 2.6 million for the corresponding quarter. The company's cash reserves fell to NIS 176 million at the end of June from NIS 266 million a year earlier.
Published by Globes [online], Israel business news - www.globes-online.com - on August 15, 2012
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