Perrigo’s board voted unanimously Thursday to reject the takeover bid launched by Mylan this week, saying the offer “substantially” undervalued Perrigo and its “exceptional” growth prospects.
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“It presents clear risks and would result in value destruction for shareholders, including forcing them into a ‘corporate governance prison’ with extreme anti-shareholder provisions,” Perrigo CEO Joseph Papa said in a letter to shareholders. Mylan is offering $75 in cash and 2.3 shares of Mylan stock for every Perrigo share.
Meanwhile, an institutional shareholder with hundreds of millions of shekels of Perrigo stock told TheMarker he would vote against the offer. “Perrigo is a company with a good performance record, good management and good corporate governance. Mylan, by contrast, has under-performed and has problematic governance,” said the investor, who asked not to be named. Perrigo shares finished 2.1% higher at 708.60 shekels ($182.51). (Yoram Gabison)
Maytronics slates new plant as hot weather boosts sales
This year’s unusually hot summer, with temperatures exceeding the previous record set in 1998, has been good to Maytronics, the maker of robot swimming pool cleaners. With sales up 18% in the first half of the year even before the summer began, the company said on Wednesday it planned to expand production capacity by 60% by opening a second plant in Israel at a cost of $4 million to $5 million.
Maytronics, which is owned by Kibbutz Yizre’el, said it was in negotiations to lease space in a development zone A area, which would entitle it to government aid. The company said the new facility would help it meet its target for boosting sales to 650 million shekels ($167.4 million) in 2018, compared with 458 million in the 12 months through the end of June.
Maytronics controls about 25% of the market for public swimming polls and 37% of the market for private pools. Maytronics shares ended unchanged yesterday at 11.32 shekels. (Yoram Gabison)
Can-Fite shares soar after U.S. fast tracks liver drug development
Shares of Can-Fite jumped yesterday after the biotech company reported that the U.S. Food and Drug Administration had granted CF102 drug Fast Track designation as a second-line treatment for the most common form of liver cancer. The designation is given to important new drugs that fill a need for patients earlier, and should expedite its development and approval.
Can-Fite is conducting a Phase II study for the drug for treating hepatocellular carcinoma in the U.S., Europe and Israel. The study is expected to complete enrollment by the middle of 2016 for 78 patients with Child-Pugh Class B cirrhosis who failed to respond to Bayer’s Nexavar, the only FDA-approved drug on the market, Can-Fite said.
According to Global Industry Analysts, the world market for liver cancer drugs is projected to exceed $2 billion in 2015. Can-Fite shares closed 25.4% higher at 4.25 shekels ($1.09). (Yoram Gabison)
Tel Aviv shares end lower as world waits Fed rate decision
Tel Aviv stocks ended slightly lower Thursday as global markets awaited a U.S. Federal Reserve decision on whether to raise interest rates.
The benchmark TA-25 index ended virtually unchanged at 1,594.83 points, while the TA-100 was down 0.1% at 1,392.03, on turnover of 1.19 billion shekels ($310 million). Bank shares, which were especially sensitive to economic conditions, fell sharply after the government reported revised second-quarter growth figures showing gross domestic product edged just 0.1% higher. Bank Hapoalim ended down 2.2% at 20.39 shekels, Bank Leumi was off 2.3% at 15.15 and Israel Discount Bank fell 2.7% at 7.48. Frutarom extended a rally that has seen its shares climb 9.1% in the past seven sessions, adding 1.9% to close at 158.30 shekels.
The bond market was quiet, with the Tel-Bond indices rising between 0.13% and 0.17%. The government’s 10-year shekel bond edged 0.03% down to boost its yield to 2.43%. (Eran Azran)