Business in Brief: Mobileye and Delphi to Jointly Develop Self-driving System to Be Ready by 2019

News of Eurocom’s talks to sell Space-Comm sends satellite company’s share price up 9.4% | Gazit-Globe reports slump in Q2 profits | U.S. lawmakers press Mylan on price of EpiPen

Illustration: A ten-seater driverless car on its test run in Dubai, United Arab Emirates, April 25, 2016.
Illustration: A ten-seater driverless car on its test run in Dubai, United Arab Emirates, April 25, 2016.Credit: RTA via AP

Mobileye and Delphi to jointly develop self-driving system to be ready by 2019

Israeli automated driving developer Mobileye said Tuesday that it is developing a self-driving system with Delphi Automotive that will be ready for production by 2019. Mobileye cut its ties with Tesla Motors last month after the electric carmaker’s autopilot system faced scrutiny from regulators following a fatal accident in early May. Tesla’s autopilot system uses EyeQ chips from Mobileye to help with image analysis for steering and staying in lanes. Mobileye and Delphi said their technology would cater to automakers that may not necessarily want to develop their own self-driving systems. Mobileye’s U.S.-listed shares were up 6.6% at $49.71 in early trading, while Delphi’s shares rose 3% to $67.04. (Reuters)

News of Eurocom’s talks to sell Space-Comm sends satellite company’s share price up 9.4%

Eurocom is in talks to sell Space-Communication, the company that operates the Amos satellite system, at a market value of $285 million, just over a billion shekels. Eurocom’s formal notice to the Tel Aviv Stock Exchange of advanced negotiations sent Space-Communication’s shares soaring Tuesday after climbing more moderately earlier on reports of a possible sale. The shares ended the day up 9.4% to 44.40 shekels ($11.78). The notice to the exchange said the talks involve the prospective sale of the company to an overseas entity through a reverse triangular merger. A $285 million price tag would represent a 25% premium on its share price. Two other attempts to sell Space-Communication fell through in the past three years. Eurocom is controlled by Shaul Elovitch, who also controls Bezeq. (Guy Erez)

Gazit-Globe reports slump in Q2 profits

Gazit-Globe, the country’s largest real estate development company, reported Tuesday that its net profits declined in the second quarter due to a devaluation of the company’s financial derivatives. Net profits fell to 97 million shekels ($25.7 million) in the quarter from 130 million a year earlier. Rental income grew 0.6% to 1.52 billion shekels, while net operating income increased 3.0% to 1.07 billion shekels. The company’s shares closed 4.4% higher at 39.87 shekels in trading on the Tel Aviv exchange Tuesday. (Reuters)

U.S. lawmakers press Mylan on price of EpiPen

Two senior lawmakers on the U.S. Senate’s Judiciary Committee on Monday pushed for information regarding sharp price increases for EpiPens, drug-filled injectable devices used by people to counter potentially deadly allergic reactions. Committee Chairman Chuck Grassley wrote Mylan Chief Executive Heather Bresch on Monday to ask how Mylan determined the price of EpiPens and what changes had been made to the product to account for the higher price. The top Democrat on the committee’s antitrust subcommittee, Senator Amy Klobuchar, urged the Federal Trade Commission to investigate the price hikes, citing news reports showing that the price of a pack of two EpiPens had gone from $100 in 2008 to $500 this year. Mylan acquired the product in 2007. The company, which is dual-listed on Nasdaq and in Tel Aviv, did not immediately comment on the letters but noted in an email that nearly 80% of people with commercial insurance who use a savings card can get the medicine for free. (Reuters)

Tel Aviv Stock Exchange edges higher

The blue-chip Tel Aviv 25 index nudged up by 0.09% in trading on Tuesday to 1,472.58 points while the broader Tel Aviv 100 index rose 0.3% to 1,296.15. Trading volume for the day was 979 million shekels ($260 million). Among shares of note, Mylan lost 5.3% on the day, closing at 174.40 shekels, while shares of Space-Communication, which is the subject of a potential sale to an overseas buyer, jumped by 9.4% to 44.40 shekels. (See stories on both companies above). Clal Biotechnology Industries stock rose by nearly as much, 8.5% to 3.02 shekels, following news on Monday that it stands to gain from Pfizer’s acquisition of Medivation. (Uri Tomer)



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