Two significant Israelis life sciences holdings companies are becoming one. Clal Biotechnology Industries Ltd. (TASE: CBI) today announced that it will acquire Biomedical Investments (1997) Ltd. for NIS 84 million in cash, shares and warrants. Clal Biotech will pay NIS 28 million, and allot to Biomedical 3 million shares and 1.25 million warrants.
Biomedical Investments was jointly founded by Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA), the Arison family, and Len Abramson (one of Shari Arison's US partners in the controlling core of Bank Hapoalim (TASE: POLI). Both Clal Biotech and Biomedical Investments are managed by Arte Venture Group, and Teva has a minority interest in both companies (it owns 33% of Biomedical and 14.67% of Clal Biotech).
Biomedical Investments was founded by Dr. Benad Goldwasser, a co-founder of colonoscopy start-up GI View Ltd. and of stent maker Medinol Ltd.
Nochi Dankner controlled IDB Holding Corp. Ltd. (TASE:IDBH) subsidiary Clal Industries and Investments Ltd. (TASE: CII) owns 63% of Clal Biotech. Teva invested in the company five years ago.
Biomedical Investments has raised $20 million to date, and returned $15 million from exits by portfolio companies, including ColBar, Remon Medical Technologies Inc., and XTL Biopharmaceuticals Ltd. (Nasdaq:XTLB); TASE:XTL), which held its IPO on the London Stock Exchange.
The current sale brings investors altogether about double their money.
Biomedical Investments currently has holdings in several prominent companies. The most important holding is a 20% stake in stem cell therapies developer Gamida Cell, which is now undertaking a Phase III clinical trial of its flagship product, StemEx. Gamida Cell will become the fourth Clal Biotech subsidiary to reach this stage. Last week, Gamida Cell controlling shareholder Elbit Imaging Ltd. (Nasdaq: EMITF; TASE: EMIT) decided to spin off and float a new life sciences unit, which will own 28% of Gamida Cell as well as InSightec Image Guided Treatment Ltd.. Gamida Cell has a partnership with Teva and has $15 million in cash, sources inform ''Globes''. The company probably has enough money to complete the clinical trial.
Clal Biotech's share rose 4.4% in morning trading to NIS20.46, giving a market cap of NIS 1.83 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on March 1, 2010
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