Business in Brief

Mobileye profits up sharply after IPO; Kamada crashes after clinical trials fail; Teva begins sales of hepatitis B generic; Hamashbir plans share sale; Bezek, banks lead TA-25 index higher.

Reuters

Mobileye profits up sharply after IPO

Revenue surged 91% in Q2 after last month’s largest-ever IPO by Israeli firm.

A month after going public on Wall Street, Mobileye, the maker of collision-prevention technology, posted sharply higher quarterly profit and revenue. The company on Thursday reported second-quarter earnings excluding one-off items of 5 cents a share, compared with 3 cents a year earlier. Revenue surged 91% to $33.7 million. Mobileye raised $890 million last month in what was the largest-ever initial public offering by an Israeli company. “We have numerous opportunities to continue to drive growth, including creating new and enhanced applications to capitalize on the advantages of our complex technology,” CEO Ziv Aviram said. “Longer term, our position in the market will enable us to benefit significantly from the large and growing semi-autonomous and autonomous driving trend.” Mobileye shares were up 1.2% at $46.43 mid-day in New York trading. (Reuters)

Kamada crashes after clinical trials fail

Kamada shares plunged in Tel Aviv Stock Exchange trading on Thursday after it reported that clinical trials of a key drug yielded disappointing results. The developer of drugs using a propriety protein-purification technology said European trials of its inhaled Alpha-1 antitrypsin did achieve statistically significant outcomes compared to a placebo used as a control. The drug was designed to treat AATD, or inherited emphysema, when proteins made in the liver are misshaped and therefore can’t reach the lungs to protect them from disease. However, the drug did show potential for reducing inflammatory injury to the lung that is associated with a reduced loss of respiratory function, which the company said would act as a basis for discussions with the European Medicines Agency about conditional approval of the drug, said CEO David Tsu, adding that Kamada be seeking U.S. Food and Drug Administration registration in the United States. Kamada shares ended down 22.3% at 20.11 ($5.61) . (Yoram Gabison)

Teva begins sales of hepatitis B generic

Teva Pharmaceuticals said on Thursday it was launching its generic version of Baraclude tablets in the United States for the treatment of chronic hepatitis B virus in adults. Teva said it was first to file, making the product eligible for 180 days of marketing exclusivity and ensuring higher-than-usual profits from the drug. Sold by Bristol-Myers Squibb, Baraclude tablets had annual sales of approximately $328 million in the United States in the year to June. The launch came a day after Teva won a court fight in Britain invalidating one of the patents AstraZeneca holds for its respirator drug Symbicort, moving the Israeli company closer to launching a generic version. Shares of Teva closed up 0.9% to 188.50 ($52.59) in Tel Aviv. (TheMarker Staff)

Hamashbir plans share sale

Retailer Hamashbir Lazarchan is planning to tap the stock market for 40 million shekels ($11.2 million) in a share offering aimed at shoring up its balance sheet, TheMarker has learned. Rami Shavit, the company’s controlling shareholder, hopes to conduct the sale in the next few weeks to boost his 124 million shekels in shareholder’s equity, a figure that’s declined to just 111% of Hamashbir’s balance sheet after the company sustained losses from its failed Office Depot business. The share sale will also boost the public’s stake in Hamashbir to more than 25% from 20%, ensuring its place in the Tel Aviv Stock Exchange’s Mid-Cap 50 index and make the stock more liquid. The price of the shares will be determined during Hamashbir’s roadshow with institutional investors. Shares of Hamashbir ended down 1.1% to 4.39 shekels. (Eran Azran)

Bezek, banks lead TA-25 index higher

The TA-25 pushed past its record-high close earlier this week, lifted by trading in Bezeq and bank shares. The benchmark index rose 0.2% to close at 1,424.32 points, with the TA-100 trialing on a 0.1% gain to 1,286.39., Turnover was a brisk 1.34 billion shekels ($370 million). For the week, the TA-245 and TA-100 indices posted gains of 1.4% and 1.7%, respectively. Bezeq led the most actives on Thursday, advancing 1.7% to finish at 6.94 shekels. Bank Leumi ended 1.4% higher at 14.17 shekels and Bank Hapoalim ahead 1.2% at 20.25. Israel Discount Bank, on the other hand, dropped 0.7% to 6.03 after the Bronfman-Schron group, which is gradually selling its controlling stake, offloaded a 5.9% stake in the lender in an off-the-floor slate through Citibank. Tech shares were mostly lower, with PhotoMedex slumping 11.9% to end at 26.20 shekels (Shelly Appelberg)