Procognia revenue jumps with Teva collaboration

The biotechnology company supplies the pharmaceutical giant with drug analysis.

ProCognia (Israel) Ltd. (TASE:PRCG) has completed the feasibility study of the technology of a biopharmaceutical product being jointly developed with Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA). Procognia provides Teva with analytical services and exclusive user rights of the company’s proprietary glycoanalysis and protein function arrays of proteins for use in drug development.

Procognia doubled its pro forma revenue to NIS 2.6 million in the first half of 2007 from NIS 1.3 million in the first half of 2006. Second quarter pro forma revenue rose by two-thirds to NIS 1.5 million from NIS 940,000 for the corresponding quarter of last year. The company attributed the growth to its collaboration with Teva, a contract with Bristol-Myers Squibb Co. (NYSE:BMY), and an exclusive marketing agreement in Israel with Qiagen NV (Nasdaq:QGEN; XETRA:QIA).

The company posted a net loss of NIS 2.7 million for the second quarter and NIS 8.3 million for the first half, including a NIS 3.8 million provision for employee stock options allocations.

Following a restructuring of the relationship of Procognia (Israel) with its British parent company, Procognia Ltd., Procognia (Israel) provides its services independently and recognizes its own revenue.

Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY.PK) subsidiary Africa-Israel Investment House Ltd. has become a party at interest in Procognia (Israel).

Published by Globes [online], Israel business news - www.globes.co.il - on September 2, 2007

© Copyright of Globes Publisher Itonut (1983) Ltd. 2007

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