Business in Brief: Tel Aviv Shares Extend post-Trump Advance

Perrigo says it’s exploring options for its Tysabri multiple sclerosis drug; SodaStream shares reach two-year high on jump in profits; Nice Systems tops profit forecast, raises outlook for 2016.

A large digital ticker shows financial information to pedestrians outside the entrance to the Tel Aviv Stock Exchange (TASE) in Tel Aviv, Israel, on Thursday, Aug. 4, 2016.
Entrance to the Tel Aviv Stock Exchange (TASE) in Tel Aviv, Israel. Credit: Rina Castelnuovo, Bloomberg

Tel Aviv shares extend post-Trump advance

Tel Aviv shares celebrated their post-Trump gains for a second day Thursday, with drug stocks pacing gains. In foreign-currency trading, the dollar extended its gains on the shekel, strengthening more than 1.1% to a Bank of Israel rate of 3.8420 shekels. The blue chip TA-25 index ended up 0.45% at 1,424.94 points, while the TA-100 added 0.8% to 1,242.83, in heavy turnover of 1.77 billion shekels ($460 million). Teva Pharmaceuticals posted a second day of big gains, rising 3% to 159.20 shekels. Biomedical shares also rallied, with Mannkind leaping 31.8% to 2.38 after the drug giant Sanofi agreed to forgive the balance of its $71. 6 million loan to MannKind and purchase $10.2 million worth of insulin from the company. Delek Group, which ended down 0.9% to 769.40, said it won rights to explore a deep-water block off the shore of Newfoundland, Canada with a small private Israeli operator, Navitas Petroleum. Real-estate shares extended their losses for a second day. (Uri Tomer)

Perrigo says it’s exploring options for its Tysabri multiple sclerosis drug

Perrigo, the U.S. drug maker traded on the Tel Aviv Stock Exchange, said it would review strategic options for royalty rights from sales of multiple sclerosis drug Tysabri as it reported a higher-than-expected adjusted quarterly profit. Perrigo, which has been under pressure from activist investor Starboard Value to make changes, including exploring options for Tysabri, hired Morgan Stanley as financial adviser to lead the review process for Tysabri. Royalty Pharma, a privately held company specializing in acquiring drug royalties, is among potential buyers, Reuters reported in September. On an adjusted basis, the company earned $1.80 a share, beating analysts’ average estimate of $1.58, according to Thomson Reuters I/B/E/S. Revenue rose 1% to $1.35 billion, including sales of $22 million from held-for-sale businesses. Analysts on average were expecting revenue of $1.28 billion. Perrigo ended 8.6% higher at 338.20 shekels ($87.88). (Reuters)

SodaStream shares reach two-year high on jump in profits

SodaStream shares soared to a two-year high Thursday after it reported big gains in third-quarter sales and profit, exceeding Wall Street expectations. The Israeli maker of home carbonation machines boosted its net profit from a year ago nearly sevenfold to $14.9 million, or 69 cents a share. Revenue increased 12.9% to $124.2 million as the company makes a transition from a focus on homemade sodas to flavored sparkling water. The results beat Wall Street forecasts by a wide margin; the average estimate of analysts surveyed by Zacks Investment Research was for earnings of 24 cents a share and revenue of $117.7 million. “We believe that repositioning the SodaStream brand around sparkling water, combined with effective marketing programs, is setting the foundation for acceleration in household penetration in each of our geographic regions,” said CEO Daniel Birnbaum. SodaStream shared jumped 22.8% to close at 123.40 shekels ($32.06). (Omri Zerachovitz)

Nice Systems tops profit forecast, raises outlook for 2016

Nice Systems Thursday reported an 11% rise in third-quarter profit, topping analysts’ estimates and raising its outlook for 2016. The maker of customer-service technology said earnings in the period climbed 9.5% to $50.7 million, or 83 cents excluding one-off items, while revenue grew 8.7% to $240.3 million. Analysts had expected adjusted earnings of 81 cents on revenue of $239.8 million, according to Thomson Reuters I/B/E/S. Nice forecast fourth-quarter revenue of between $320 million and $334 million, and diluted EPS ex-items of $1.10 to $1.22. For 2016, Nice raised its revenue estimate to $1.022 billion to $1.036 billion and diluted EPS ex-items to $3.53 to $3.65. “The strategic steps that we have taken including our technology and portfolio innovation, Nexidia analytics and the acquisition of inContact ... have positioned us well to capitalize on the significant market opportunities,” said CEO Barak Eilam. Nice shares closed up 1.5% at 264.80 shekels ($68.98). (Reuters)

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