Clal Biotech to report NIS 35m loss on D-Pharm failure

NIS 500 million had been invested in the development of D-Pharm's DP-b99 drug for the treatment of ischemic cerebral stroke.

Clal Biotechnology Industries Ltd. (TASE: CBI), the life sciences investment arm of Nochi Dankner-controlled IDB Holding Corp. Ltd. (TASE:IDBH), today announced that it will report a NIS 35 million loss due to the failure of portfolio company D-Pharm Ltd. (TASE: DPRM). Yesterday, D-Pharm announced that it was halting the Phase III clinical trial of its treatment for ischemic cerebral stroke, after the advisory concluded that it had little chance of success. Clal Biotech owns 46% of D-Pharm.

Clal Biotech added that it will report a capital write-down of NIS 175 million, including NIS 140 million for the previously recognized valuation when the company acquired D-Pharm. The company cautioned that the figures are not audited.

Clal Biotech's immediate parent company Clal Industries and Investments Ltd. (TASE: CII) announced that it will report of loss of NIS 20 million for the same reason, and that the capital write-down will total NIS 100 million. Clal Industries owns 56.6% of Clal Biotech and Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) owns 14.1%.

NIS 500 million had been invested in the development of D-Pharm's DP-b99 drug for the treatment of strokes.

Clal Biotech's share price fell another 1% in morning trading today to NIS 19, after falling 8.1% yesterday. Clal Industries' share price rose 0.8% to NIS 17.60, giving a market cap of NIS 2.8 billion. D Pharm's share price fell another 14% to NIS 1.72, after falling 84.7% yesterday, giving a market cap of NIS 27 million.

Published by Globes [online], Israel business news - www.globes-online.com - on January 25, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018