Business in Brief: CyberArk Shares Fall Despite Strong Quarter

Kitov shares rally in Tel Aviv after clarification on securities probe; Southern Properties raises 228 million shekels in bond sale; Navidea shares plunge on concerns that key deal is in jeopardy.

Cyberark

Kitov shares rally in Tel Aviv after clarification on securities probe

Shares of Kitov Pharmaceuticals surged higher Sunday after the company signaled that development of a key drug would not be delayed because the Israel Securities Authority detained its CEO briefly for questioning. Kitov said Isaac Israel was questioned on the Phase 3 trial of its KIT-302 drug treatment for hypertension and osteoarthritis pain and the role of the trial’s Data Monitoring Committee. Nevertheless, Kitov said it expected to seek U.S. approval for KIT-302 by the end of the quarter and pursue other drug developments. “As is standard practice in Israel during ISA investigations and enforcement proceedings ... Kitov’s CEO was detained for questioning and subsequently released on the same day, under certain limited restrictive terms established by a court,” the company said without elaborating. Nasdaq trading resumed Friday on a 1.4% drop to $2.12, but in Tel Aviv on Sunday the shares shot up 18.5% to 40 agorot (11 cents). (Shelly Appelberg)

CyberArk shares fall despite strong quarter

CyberArk, a cybersecurity company, turned in strong fourth-quarter earnings on Thursday, but the celebration was short lived. The company said earnings, adjusted for one-time gains and costs, came to 41 cents per share, topping Wall Street expectations by a wide margin, with analysts surveyed by Zacks Investment Research expecting just 33 cents a share. Revenue for the three months was $64.4 million, also surpassing forecasts by Zacks analysts for $62.9 million. CyberArk said sales for the first quarter would be as high as $58 million, a 24% increase from first-quarter 2016 while adjusted EPS would be 21 to 23 cents. It added that revenue for all of 2017 would be up to $270 million, an increase of  25% over 2016, while adjusted EPS would be $1.20 to $1.24. But CyberArk’s Wall Street-traded shares rose on Thursday on the news by 2.9% only to reverse on Friday and fall 4.5% to $52.86. (TheMarker Staff)

Southern Properties raises 228 million shekels in bond sale

Southern Properties completed the institutional tranche of its first ever bond sale in Tel Aviv on Thursday, drawing firm orders and winning a slightly lower rate of interest than had been expected. The U.S. property company raised 228 million shekels ($60.8 million), far more than the 150 million it had originally planned, after drawing orders for 440 million. The coupon was set at 7.4%, a relatively high figure but lower than expected. The public tranche, which should take place later this week, will bring the proceeds to 276 million shekels. Southern’s success may signal the revival of the debt market for North American real estate companies. Investor interest in the sector died down after Urbancorp collapsed last April, just months after it issued bonds, and liquidity problems at Textell, which had raised 1.6 billion shekels in debt in Tel Aviv over the years. (Michael Rochvarger)  

Navidea shares plunge on concerns that key deal is in jeopardy

Shares of Navidea Biopharmaceuticals plunged Sunday amid concerns that an agreement that is supposed to rescue the company is in jeopardy. Investors were apparently concerned about a U.S. court ruling against Navidea last week in a legal dispute over its debt to the U.S. financial company CRG. But a source at Navidea told TheMarker that the ruling did not jeopardize its agreement with Cardinal Health Systems of the United States. “We’re aware that the stock has been volatile due to fears about the matter [the court case], but the [Cardinal] deal will be completed right after shareholders approve it in a vote the first week of March,” the source said. Navidea reached a pact in September to sell its North American rights to Lymphoseek, used to diagnose cancer, to Cardinal for as much as $310 million if certain conditions are met. Navidea shares plunged 16.6% to 1.40 shekels (37 cents). (Uri Tomer)