Elbit Imaging Ltd. (Nasdaq: EMITF; TASE: EMIT) spin-off Elbit Medical has published its draft prospectus for an IPO on the Tel Aviv Stock Exchange (TASE). Elbit Medical was set up as a holding company for Elbit Imaging's biotech holdings, including a 71.3% holding in InSightec Ltd. and 31.6% holding in therapeutic stem cell developer Gamida Cell Ltd.
Isightec planned to go public on Nasdaq in 2005 at a company value of $500 million, but never did. Gamida Cell held its last financing round at a company value of $80 million. The draft prospectus did not disclose the valuations Elbit Medical hopes to obtain, but the company reportedly wants to raise $50-70 million at a company value of $250-350 million.
Insightec has developed and MR guided focused ultrasound treatment for treating uterine fibroids and certain tumors. The company has 161 employees, after firing 6% of its workforce last year. The company is targeting markets worth an estimated tens of billions of dollars. Most sales in 2009 were in Europe, where two companies, GE Healthcare and Rossylin Medical Ltd., account for over 20% of Insightec's sales. GE Healthcare also owns 16.9% of Insightec. The company's orders backlog totaled $12.7 million at the end of March 2010.
Elbit Imaging invested $14.2 million in Gamida Cell through the end of 2009, compared with its investment of $89.3 million in Insightec. Gamida Cell's other investors include Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA), with a 7.5% holding, and Clal Biotechnology Industries Ltd. (TASE: CBI), with a 16.8% stake, which it acquired through its acquisition of Biomedical Investments (1997) Ltd. a month ago, and Israel Healthcare Ventures Ltd., with 16.3%.
Elbit Imaging's share closed at $21.41 on Nasdaq on Friday. The share price fell 0.6% by early afternoon on the TASE to NIS 78.62.
Published by Globes [online], Israel business news - www.globes-online.com - on May 2, 2010
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