Business in Brief: Teva to See Immediate Profits From Takeda Tie-up

Massivit eyes Tel Aviv IPO; Elbit wins $70m contract; energy stocks rise on the TASE.

Reuters

Teva to see immediate profits from Takeda tie-up

A joint venture between Teva Pharmaceutical Industries and Japan’s Takeda Pharmaceutical Company will add to the companies’ earnings immediately after launching in April, the partners say. The JV, which was announced in November and will be 51%-owned by Teva, will sell Teva’s generic drugs and Takeda products in Japan through the Japanese company’s distribution network. Takeda, Japan’s biggest drug maker, will shift a major part of its product portfolio to the joint venture, amounting to sales of 125 billion yen ($415 million) in fiscal 2014, or 7% of its global revenue. That will reduce Takeda’s revenues while adding to earnings per share and cash flow because the Japanese generics market is expected to grow quickly, the companies said. On Monday, Teva shares ended down 0.6% at 255.60 shekels ($65.88). (TheMarker)

Maker of giant 3D printers eyes Tel Aviv IPO

Massivit, a maker of 3D printing technology founded by former executives of Stratasys, is eyeing an initial public offering probably on the Tel Aviv Stock Exchange, sources told TheMarker. The company hopes to raise $10 million in an offering that values it at between $25 million and $30 million, the valuation at which it completed a private financing round in October. Unlike most 3D-printing companies, which focus on small parts and components, Massivit produces for one-time use in marketing and promotions from gel-based materials that solidify instantaneously in UV light. It can quickly produce an item the size of a person in a single print. Formed in 2013, it has signed its first distribution agreement and is expected to begin sales next year. The IPO’s proceeds would be used to develop the printers, which are expected to sell for $300,000 each. (Omri Zerachovitz)

Elbit wins $70m contract from the Defense Ministry

Elbit Systems said Monday it had won a contract worth about $70 million from the Defense Ministry for electronic warfare systems. The gear will be delivered over five years, to be installed on all types of Israeli fighter jets. The contract was the fourth major win for the defense electronics maker after announcing it had secured a $50 million order from an unnamed Asia-Pacific country last week for intelligence-gathering technology. In recent weeks, there has also been a $25.6 million contract with an unnamed Asia-Pacific buyer for technology that protects aircraft from small missiles, and a $200 million drone contract with Switzerland. Elbit shares ended 0.3% higher at 340.90 shekels ($87.87). (TheMarker)

Energy bucks trend as Tel Aviv shares end lower

Tel Aviv shares ended lower Monday as world stock markets fell following another drop in petroleum prices. The benchmark TA-25 index finished down 0.6% at 1,524.67 points, while the TA-100 lost 0.5% to 1,315.36, on turnover of 1.44 billion shekels ($372 million). Israel Chemicals, the most active share of the day, tumbled 4% to 16.97 shekels, while Gazit Globe fell 3.8% to 34.42 in unusually heavy trading after it said it was considering a share offering. Sources said the property company would seek 300 million shekels. Mylan was another big loser, dropping 2.75% to 208.70, but despite another drop in oil prices, Israeli energy shares extended gains amid growing optimism about development and exports of natural gas. Avner rose 1.9% to close at 2.37 shekels, Delek Drilling added 2.4% to 12.125 and Ratio climbed 2.9% to 28 agorot. (Eran Azran)