Daily Roundup / Teva Set Aside $5m From Israel Profit for Tax in 2012
It also wins big patent case; Elbit agrees to sell self-defense systems with Boeing; Biogroup stock soars after step to make bone alone; Liveperson beat forecasts, and Spacenet gets star contract.
Teva taxing the public's patience? The public has been growling over the sweetheart tax rates paid by multinationals. In 2012, Teva Pharmaceutical Industries set aside just $5 million for tax from its profits made in Israel, following large accounting charges, notably a $670 million provision for a patent challenge over the drug Protonix. Actual tax paid was higher, though the drug company owed no tax on its gains from Copaxone, the multiple sclerosis treatment that is its main source of consolidated profit.
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And Teva beats Bristol: In other news of Teva, it beat Bristol-Myers Squibb in a Delaware court, which Tuesday voided the British company's patent covering hepatitis Baraclude. The patent, which would have expired in October 2015, is too trivial, the court explained. World sales of Baraclude totaled $1.6 billion in 2012, an increase of 16% from the year before. Bristol-Myers Squibb says it may appeal the ruling.
Elbit Systems to defend Boeing fighter jets: Elbit Systems on Tuesday signed a memorandum of understanding with Boeing to jointly sell self-defense systems for Boeing military aircraft around the world. According to the MoU, the companies will offer Elbit's Directed Infrared Counter Measure systems for Boeing military fixed-wing and vertical-lift aircraft. The Elbit systems, produced by Elbit Systems Electro-Optics ELOP, are lightweight, compact systems designed to protect aircraft from common battlefield threats. The potential revenue for the Elbit group could reach hundreds of millions of dollars.
Bonus Biogroup building bone-making plant: Shares of Bonus Biogroup shot up 13% on Tuesday trading in Tel Aviv after the company said it is building a center with administration, labs and a production facility, to build bone tissue for implant into humans at the Haifa Science Park. The whole idea is to make the cell-therapy company independent of any other companies or agencies in the production of bone regeneration tissue, which would be implanted in people with bone lesions, for instance from arthritis or osteoporosis.The center, which will cost several million shekels to build, should be completed in a matter of months, BB says. It adds that the facility will comply with U.S., European and Israeli regulatory standards.
Liveperson beats forecasts: Virtual chats company Liveperson, which is dual-listed in Tel Aviv and Nasdaq, on Tuesday reported revenues of $42.5 million for the last quarter of 2012, a hair above the $41.7 million expected by analysts. It netted 8 cents per share, exactly as foreseen. For the first quarter of 2013 Liveperson says it expects revenues of $42 to 43 million, roughly in line with expectations on the Street. It forecasts netting 11 to 13 cents per share, while analysts feel it's more likely to have to settle for 8 cents per share. We shall see.
Spacenet wins big contract: Gilat Satellite Networks says its subsidiary Spacenet has won a $20 million 5-year base contract with a "leading delivery service organization" that's cutting costs, to upgrade and provide network connectivity to more than 5,700 locations. The contract comes with extension options that could stretch it out to 14 years, Gilat said.
With reporting by Michael Rochvarger, Yoram Gabison and Shelly Appelberg
