Business in Brief: Discount Derivative Suits Free to Proceed

RedHill partners with NIH on Ebola drug; TASE closes mixed, Teva gains 4.8%.

Shelly Appelberg
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Stock prices flash on an electronic screen displaying world clocks at the Tel Aviv Stock Exchange (TASE) in Tel Aviv, Israel, on Thursday, Dec. 11, 2014.
Stock prices flash on an electronic screen displaying world clocks at the Tel Aviv Stock Exchange. Credit: Bloomberg
Shelly Appelberg

Discount derivative suits free to proceed

The High Court of Justice on Wednesday rescinded an injunction blocking derivative suits on behalf of Discount Investment Corp., in yet another blow to fallen tycoon Nochi Dankner.

Justices withdrew a December 2014 order suspending proceedings in a derivative suit that sought to force some 21 decision makers at Discount Investment to return 2 billion shekels to the company. The defendants include Dankner, who was convicted of share manipulation earlier this month.

The suit accuses Discount Investment controlling shareholders of manipulating accounting regulations to enable massive, unjustified dividend payments. (Shelly Appelberg)

RedHill partners with NIH on Ebola drug

Israeli biotech company RedHill Biopharma said Wednesday it has partnered with the U.S. National Institutes of Health on a treatment for Ebola virus.

Redhill, which develops drugs for inflammatory and gastrointestinal diseases and cancer, will work with the NIH’s National Institute of Allergy and Infectious Diseases to evaluate its experimental therapy for Ebola, the company stated. The collaboration comes after preliminary non-clinical studies conducted in conjunction with the institute produced encouraging results, RedHill added.

The research collaboration will seek to evaluate how the company’s treatment impacts patient survival as well as the severity of the disease.

If the research is successful, RedHill intends to seek FDA approval for the medication based on regulations for animal-tested drugs, as human efficacy studies are not feasible. Ebola has a mortality rate of 25% to 90%. (TheMarker)

TASE closes mixed, Teva gains 4.8%

The Tel Aviv Stock Exchange finished the day mixed with a positive bias, as Teva Pharmaceutical Industries rose 4.8% increase after issuing new growth forecasts.

The blue-chip TA-25 index gained 0.3% to close at 1,449 points, while the broader TA-100 index gained 0.4% to close at 1,263 points. Oil and gas shares dropped 0.1%, bank shares lost 0.2% and real estate and biomed shares lost 0.7% and 1.3%, respectively. Total turnover was 1.34 billion shekels.

Notable shares included Teva, which released growth forecasts through 2019. Teva expects revenues to grow at an average annual rate of 9%, and to reach $26.7 to $27.8 billion by 2019, it stated. It expects EBITDA to grow at an annual rate of 14% through 2019, and to reach $10.7 to $11.5 billion by 2019, it said. (Shelly Appelberg)

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