Teva Shares Drop After Reports About New CEO Damped

Business in Brief | CyberArk shares plunge on earnings disappointment ■ Gov’t housing company Amidar due to get OK to issue bonds ■ Stocks end sixth straight session higher

An employee of Teva Pharmaceutical Industries at a Jerusalem plant.
An employee of Teva Pharmaceutical Industries at a Jerusalem plant. Ronen Zvulun/REUTERS

Teva shares drop after reports about new CEO damped 

Teva Pharmaceuticals shares fell and those of AstraZeneca climbed after the Anglo-Swedish pharmaceutical company damped reported that CEO Pascal Soriot was jumping ship for Teva. After initially declining to comment on reports last week, AstraZeneca said Friday that Soriot would host a results call with reporters on July 27. Shares of AstraZeneca fell on Thursday and Friday following the report as the company stuck to its policy of not commenting on market rumor or speculation, but the two days of silence cut more than 3 billion pounds ($3.9 billion) from its market capitalization. Teva was left without a permanent CEO in February when Erez Vigodman stepped down after a series of missteps, leaving new management to try to restore confidence in the world’s biggest generic drug maker. AstraZeneca shares ended up 4.6% at $33.87 in New York. Teva fell 3.15% to 113.90 shekels ($32.03) in Tel Aviv Sunday. (TheMarker Staff)

CyberArk shares plunge on earnings disappointment

CyberArk shares plunged on Friday after the Israeli cybersecurity firm said that recent ransomware attacks didn’t lead to much business. The company said it suffered from continued weakness in Europe, the Middle East and Africa, which resulted in weaker-than-expected quarterly earnings. The company said preliminary figures showed revenues for the second quarter would be in the $57 million-$57.5 million range, compared with the company’s own forecast of $61 million-$62 million. Non-GAAP operating income is in the range of $8.5 million to $8.9 million, compared with the company’s prior guidance of between $10.9 million and $11.7 million, it said. Other cybersecurity stocks, which had gotten a boost from the WannaCry and NotPetya ransomware attacks in recent weeks, fell as well in response to the news. Deutsche Bank analysts also downgraded CyberArk, giving it a hold rating and dropping the price target to $45 from $60. CyberArk shares ended down 16.3% at $42.68. (Omri Zerachovitz)

Gov’t housing company Amidar due to get OK to issue bonds

Finance Minister Moshe Kahlon will ask the socioeconomic cabinet on Monday to approve a 1 billion shekel ($280 million) bond sale by government housing company Amidar. The proceeds will be used by buy 1,000 public housing apartments this year. The issue of publicly traded bonds would force Amidar, widely regarded as among the least transparent state-owned companies, to publish regular financial reports. The vote comes after nearly two years of efforts by Amidar Chairman Yitzhak Lax and the treasury budget division to overcome opposition from Housing Minister Yoav Galant, who said it would allow investors to unfairly profit from public housing. Galant went as far as trying to force Lax out of his post and even now it’s not clear that the ministry has come around to the idea. “This move will dramatically shorten the waiting time for an apartment,” said Kahlon, who has sought to increase Amidar’s portfolio of about 40,000 units. (Nimrod Bousso)

Stocks end sixth straight session higher 

Tel Aviv shares marked the six straight session of gains on Sunday after Wall Street rose over the weekend. The blue chip TA-35 index advanced 0.3% to 1,459.99 points while the TA-125 added 0.4% to 1,315.66pn turnover of 715 million shekels ($201 million). Stocks rose broadly with some of the biggest gains in the TA-125 posted by SodaStream (up 3.4% to 192.20 shekels) and TowerJazz (up 3.1% to 93.25). Modiin Energy jumped 14.6% to 9.78 after it reported preliminary signs of oil at its Mountain View, California, drilling site. Oil Refineries Limited finished 0.3% higher 1.58 said it is in talks to buy 17 billion cubic meters of natural gas from Energean. Israel Chemicals and OPC Rotem are also negotiating non-binding memorandums of understanding to buy gas from the Greek firm. Among losers, Cerragon turned lower after two days of sharp gains, losing 2.6% to 9.96. Somoto dropped 1.8% to 3.13 after it reported paying $12 million to buy an unnamed e-commerce company. (Guy Erez)