The deal could be worth as much as $300 million if MediWound's flagship product is approved.
Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) has signed an agreement with a number of investment institutions for the joint purchase of shares worth $30 million in MediWound Ltd. from Clal Biotechnology Industries Ltd. (TASE: CBI) at a company value of $100 million before money. MediWound develops, produces and markets special products for the treatment of wounds and burns. The deal could reach as much as $300 million, if MediWound's flagship product, the Debrase Gel Dressing, is approved for marketing in Europe and the US, in which case Teva will acquire up to 51% of the company.
Teva and MediWound will jointly develop the product. MediWound will produce it and sell the rights in Debrase to Teva in return for a percentage of the sales proceeds. MediWound's product is currently undergoing Phase III clinical trials. Clal Biotechnology reported a few days that it would make an immediate profit of NIS 32 million on the sale of the stake to Teva, and an additional deferred profit of NIS 49 million.
Published by Globes [online], Israel business news - www.globes.co.il - on August 22, 2007
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