Biocell Ltd. (TASE: BCEL) is mulling its first collaboration with a drug development company, and reported that it was in preliminary talks on a possible joint venture.
Biocell's sole current interest is a 17% stake in Protalix Biotherapeutics Inc. (AMEX:PLX; TASE: PLX), which has a market cap of $ 530 million. Biocell was once Protalix's biggest shareholder, and its share price closely tracked the performance of Protalix's share.
In October 2010, Biocell shareholders sent a sharply-worded letter to its CEO, Zeev Bronfeld, who owns 21.5% of the company, asking him to diversify its business. Bronfeld replied that the best investment was to continue holding the stake in Protalix. Sources believe that he was motivated by the possibility of receiving an offer for the shares at a large premium.
Biocell is now looking out for its long-term future; hence yesterday's notice to the TASE about seeking a joint venture. Such a measure would also justify the executives' salaries, including a monthly salary cost of NIS 34,000 for Bronfeld. General shareholders meetings to approve the salaries have been postponed twice.
Biocell share price rose 1.5% by mid-afternoon today to NIS 27.72, giving a market cap of NIS 170 million.
Published by Globes [online], Israel business news - www.globes-online.com - on June 28, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011