In recent weeks, Ilex Medical Ltd. (TASE:ILX) has been examining investments in medical devices and biotechnology companies. Investments will total tens of millions of shekels. Sources inform ''Globes'' that Ilex representatives have met representatives from several of these companies to examine possible venues for collaboration, including acquiring companies or their activity. Ilex had NIS 17.3 million in cash at the end of the first quarter of 2006, and NIS 80.9 million in shareholders’ equity, financing 54% of its balance sheet total.
Ilex core business is the sale of diagnostic kits made by Chiron Corporation (Nasdaq: CHIR) of the US in Israel, Turkey, CIS states and South Africa (where most of Ilex’s business is). Ilex’s strategy is international marketing. Last year, the company’s sales grew after it won a South African franchise to market improved diagnostic kits for HIV and jaundice, which can spot the viruses before they are found by ordinary antibody diagnostic kits. Ilex’s strategy to maintain its current growth rate relies on winning more franchises in other countries.
Ilex also imports and markets in Israel diagnostic products and kits of other international companies. It also markets laboratory information systems, including through a cooperation agreement with Olympus Corp. (TSE: 7733; DAX: OLY; Pink Sheets: OCPNY). The company also has a distribution franchise from General Nutrition Companies (GNC).
Ilex indirectly controls Capsivit Biotechnology Ltd., which develops anti-oxidants for the food and cosmetics industries, using technology developed at the Volcani Institute (Israeli Agricultural Research Organization). On the basis of Ilex’s business areas, it will presumably invest in start-ups developing diagnostic kits and laboratory equipment. It might also exploit its connections with the international companies it represents in Israel to promote the interests of the start-ups it will invest in.
Ilex VP business development Benny Zucker is responsible for the company’s mergers and acquisition policy. Ilex CEO is Moshe Ben Shaul.
Ilex recently made news when it was learned that it raised executive salaries and office holders without obtaining the permission from shareholders by a vote at a general meeting. When the scandal was exposed, the company disclosed full details of executive salaries, which a general shareholders meeting approved retroactively. In 1998, company executives were convicted of violations of the Securities Law (5728-1968). Both parties in the case appealed the ruling, and the case is still open.
Published by Globes [online], Israel business news - www.globes.co.il - on July 27, 2006
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