Clal Biotechnology Industries Ltd. (TASE: CBI), controlled by IDB Holding Corp. Ltd. (TASE:IDBH) and Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA), today announced a net profit of NIS 65 million in 2009, compared with a net loss of NIS 83 million in 2008. Although the company posted a net loss of NIS 16.4 million for the fourth quarter, the figure has little meaning since Clal Biotech is a holding company in biomedical companies. Even one year is a fairly brief perspective.
Most of Clal Biotech's 2009 profit came from a NIS 31 million capital gain on the IPO of portfolio company D-Pharm Ltd. (TASE: DPRM) and a NIS 52 million gain on Teva's exercise of its option on Andromeda Biotech Ltd. Clal Biotech also sold all its shares in Compugen Ltd. (Nasdaq: CGEN; TASE: CGEN) on the market.
Clal Biotech had NIS 185 million in cash at the end of 2009, even before its acquisition of Biomedical Investments Ltd. for NIS 84 million, of which NIS 28 million was in cash. Clal Biotech's cash reserves were just NIS 1 million less than a year earlier, even though it invested NIS 63 million in its portfolio companies, mostly in D-Pharm Ltd. (TASE: DPRM) (in which it owns 47%) and Andromeda (in which it owns 90%). The sales mentioned above topped up the company's cash, along with NIS 40 million raised in a private placement to Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL).
Clal Biotech's main activity during 2009 was fostering its late-stage portfolio companies, such as the completion of trials by MediWound Ltd. (in which it owns a 55% stake), and obtaining marketing approval for the product in Europe; completion of recruitment of patients for a Phase III clinical trial by Andromeda; start of a Phase III clinical trial by D-Pharm; and the start of a Phase II clinical trial by CureTech Inc., in which it owns a 39% stake.
Clal Biotech did not acquire new early-stage projects during 2009. However, it acquired Biomedical Investments in early 2010, and more acquisitions may be in the works.
Clal Biotech said in the past that portfolio company Polyheal Ltd. was in talks with large pharmaceutical companies on various forms of cooperation.
Clal Biotech began its financial report with a statement by CEO Reuven Krupik. "Climbing the mountain continues steadily and creatively. We've reached high places, which enable us to see new peaks," he said. He noted the program for setting up government biomedical investment funds for late-stage biopharmaceutical companies, for which some Clal Biotech portfolio companies will be natural candidates.
Published by Globes [online], Israel business news - www.globes-online.com - on March 10, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010