Clal Biotechnology Industries Ltd. (TASE: CBI), the life sciences investment of Nochi Dankner-controlled IDB Holding Corp. Ltd. (TASE:IDBH), today announced that it will provide 40-60% of the NIS 225 million medical devices investment fund it is setting up with Israeli institutional investors. The company added that it is in talks with institutional investors for this purpose, as part of the government incentives program for institutional investors to invest in high tech.
Clal Biotech made no transactions in the first quarter, resulting in a net loss from current operations of NIS 30.8 million, compared with a net loss of NIS 32.8 million for the corresponding quarter of 2010.
Revenue was nearly halved to NIS 6.6 million for the first quarter from NIS 12.2 million for the corresponding quarter. Revenue from licenses and rent rose to NIS 1.2 million for the first quarter from NIS 861,000 for the corresponding quarter. The company had NIS 177 million in cash and cash equivalents at the end of March.
As a holding company of drug development companies, Clal Biotech's quarterly revenue and profits (or losses) are very volatile. The company therefore decided to invest in medical devices companies to stabilize its results. Israel has scores of late-stage medical devices companies that are suffering from cash shortages, but which have much shorter development and certification procedures than pharmaceuticals, and can therefore enable Clal Biotech diversify its portfolio.
Clal Biotech's share price fell 2.2% by mid-afternoon to NIS 20.52, giving a market cap of NIS 2.1 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on May 12, 2011
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