Novolog flotation underway

Novolog truck  photo: Company website
Novolog truck photo: Company website

Drug distributor Novolog has a 40% share of the Israeli market.

The institutional stage of the flotation of drug distributor Novolog got underway today. The shareholders are offering 49.9% of the company (up to 174.6 million shares) at a minimum price of NIS 1.34 per share, at which the company's effective valuation is NIS 460 million. This compares with a valuation estimated at NIS 550 million in previous rep0orts, and of over NIS 700 million by consultants Entropy in advance of the flotation.

Novolog, owned by FIMI Opportunity Funds and Ehud Pozis, joins the Tel Aviv Stock Exchange via an offer for sale, and will be the second IPO in 2017 after gas and oil exploration company Ratio Petroleum raised nearly NIS 120 million in a primary equity offering last month. The Novolog offering is led by Leader Underwriters, with Barak Capital, Excellence, and Value Base.

Novolog (formerly Pharm-Up), was founded in 1966 by Ehud Pozis's father. It is Israel's largest drug distributor, with a market share estimated at 40% in value terms.

Novolog serves as the logistical arm for all the major pharmaceuticals companies, such as Pfizer, Novartis, Sanofi, Roche, and others. It takes a percentage of the sales it makes on behalf of its clients to hospitals, health funds, and pharmacy chains in Israel.

In the first nine months of 2016, Novolog had revenue of NIS 560 million, up 9% in comparison with the corresponding period of 2015, while its net profit jumped 13% to nearly NIS 25 million, similar to the profit for the whole of 2015. Revenue in 2015 totaled NIS 683 million, 9% more than in 2014.

At the end of September 2016, Novolog had cash and cash equivalents of NIS 163 million, and its shareholders' equity was NIS 75 million. Liabilities, almost entirely current liabilities to suppliers and service providers, totaled NIS 1.6 billion.

Published by Globes [online], Israel business news - www.globes-online.com - on February 20, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

Novolog truck  photo: Company website
Novolog truck photo: Company website
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