TheTicker/ Israel Chemicals Warns of High Court Appeal if Natural Resources Taxed

Sapiens plans $80 million stock offering; Kamada contract with Baxalta to ensure $50m in extra revenues; Tel Aviv shares power higher.

Tomer Appelbaum

Israel Chemicals said on Sunday it would turn to the High Court of Justice if the government and the Knesset approve the Sheshinski 2 committee recommendations on taxing natural resources, with significant changes.

The warning came as the Knesset Finance Committee held deliberations on the reforms, which are included in the Economic Arrangements Law due to be voted on next month. ICL Chairman Nir Gilad faulted the Sheshinski committee because the windfall profits tax it proposes is based on the book value of its assets, which don’t take into account depreciation.

Ofer Vaknin

ICL executives also criticized the Sheshinski plan to tax each mined resource separately rather than the company as a whole. The treasury estimates that imposing the Sheshinski reforms will cost ICL some 400 million shekels ($104 million) in extra taxes every year.  ICL shares ended down 1% at 21.59 shekels. (Ora Coren and Zvi Zrahiya)

Sapiens plans $80 million stock offering

Sapiens, a maker of software for the insurance industry, over the weekend filed plans for a secondary share offering of up to $80.5 million on Wall Street after its dual-listed stock climbed 52% since the start of the year.

Capital markets sources said the company would use the proceeds to beef up its cash reserves, now at $90 million, in order to continue its strategy of acquiring companies to enter new markets. In recent months, Sapiens has bought two companies – India’s Ibexi for an estimated $4 million to $6 million in April, and Poland’s Insseco for at least $9 million.

Sapiens posted revenues of $85 million in the first half of the year, an increase of 12% from the same time in 2014 while net profit grew to $8.8 million from $6.1 million. Sapiens shares closed down 0.7% at 43.01shekels ($11.21). (Omri  Zerachovitz)

Kamada contract with Baxalta to ensure $50m in extra revenues

Kamada shares soared on Sunday after it said a third extension to a key contract to supply its flagship product to the U.S. company Baxalta would secure it additional $50 million in revenues through 2018.

Kamada said it expected total revenue generated through the new agreement from August 2010 through 2018 will increase to a minimum of $240 million, compared with a minimum of $110 million in the original agreement signed in 2010 and a $191 million minimum when it was revised in September 2014. Baxalta, which was recently spun off from Baxter International, markets Glassia, which helps people with emphysema who have severe congenital AAT deficiency.

Kamada’s treatment is derived from human plasma and has anti-inflammatory and other properties that could be used to help people suffering from type-1 diabetes, graft-versus-host-disease and lung transplant rejection, the company said. Kamada shares closed up 9.2% at 14.43 ($3.76) shekels. (Yoram Gabison)

Tel Aviv shares power higher

Tel Aviv shares posted another day of strong gains, led by tech stocks and helped along with a report from Fitch affirming Israel’s credit rating. The benchmark TA-25 index ended 1.15% higher at 1,544.67 points and the TA-2100 added 1.2% to 21,347.81.

Turnover was about 582 million shekels ($151.7 million). Opko Health led gainers, advancing 4.9% to 37.40 and bringing its advance for the last two sessions to 11% after JP Morgan rated the shares a Buy.

Teva Pharmaceuticals was also up a strong 3.1% to 233.40 as it moved forward with its takeover of Alergen’s generics business by saying it planned to sell a portfolio of products to meet antitrust requirements. Jerusalem Economy jumped 9.3% at close to 11.52 shekels after it said at the end of last week that antitrust officials had approved its being sold to the Nakash brothers. Protalix led decliners in the TA-100, dropping 7.7% to 3.86 shekels. Bond trading was mostly quiet, with the government’s 10-year Galil bond rising 0.29%, causing its yield to fall to 0.56%. (Shelly Appelberg)