IDB Holding Corp. Ltd. (TASE:IDBH) subsidiary Clal Biotechnology Industries Ltd. (TASE: CBI) today published its financial report for the second quarter of 2007. The company posted a net loss of NIS 10.3 million on NIS 8.1 million revenue. The second quarter loss was almost double the NIS 5.7 million loss for the corresponding quarter.
Phase III clinical trial expenses of Diapep 277, a synthetic peptide for the treatment of diabetes, by portfolio company Andromeda Biotech Ltd. were the main cause of the heavy loss. Most of CBI’s revenue came from the capital gain from the sale of part of the company’s stake in IDM Immuno-Designed Molecules Ltd. and the release of deferred income from the fall in investment in MediWound Ltd., and from regular financing revenue.
CBI devoted much of its financial report to recent and future developments in its portfolio companies. During the second quarter, CBI a acquired the commercial rights to Diapep 277 from DeveloGen (Israel) AG in exchange for royalties from the final product and a commitment to invest up to €18 million in the company upon meeting certain milestones. Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) also acquired an option to commercialize the drug if the clinical trial succeeds. CBI said that the interim results of the trial are due during 2008.
Another portfolio company, D-Pharm Ltd. completed Phase IIb clinical trials of its treatment for strokes, and is now seeking a partner for further trials. The company’s future is closed tied to finding such a partner. CBI owns 34% of the company.
In its guidance for the third quarter, CBI predicts NIS 32 million revenue and NIS 49 million in deferred income from the commercialization of MediWound’s burn treatment. CBI owns 74% of MediWound.
Published by Globes [online], Israel business news - www.globes.co.il - on August 19, 2007
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