Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) is deepening its collaboration in Clal Biotechnology Industries Ltd. (TASE: CBI) portfolio drug development company CureTech Ltd.. Teva will investment an additional $10.5 million in CureTech to enable it to carry out the Phase II clinical trial of its CT011 drug for the treatment of colon cancer. The company is already conducting a Phase II trial of the drug on lymphoma patients.
CureTech and Teva's boards approved an amendment to the original agreement from February 2006, under which CureTech will allocate more shares to Teva. The allocation will be at the same price as in the original agreement, which was made at a company value of $46 million, before money, or at a higher valuation, depending on mechanisms stipulated in the agreement.
CBI said that it would report a capital gain of NIS 13 million as a result of Teva's new investment.
CBI chairman Ruben Krupik, who is a director of CureTech, said, "The decision to expand the investment agreement signed between CureTech and Teva in February 2006 is a vote of confidence in the company. The launch of a Phase II trial on colon cancer patients, in addition to the Phase II trial on lymphoma patients, improves the chances of the company's success and significantly expands its target markets."
CBI is the biotechnology investment arm of Clal Industries and Investments Ltd. (TASE: CII), a subsidiary of IDB Holding Corp. Ltd. (TASE:IDBH), controlled by chairman and CEO Nochi Dankner.
Published by Globes [online], Israel business news - www.globes-online.com - on July 29, 2008
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