Business in Brief: India’s Dr. Reddy’s to Buy Eight Generic Drugs From Teva and Allergan

Discount tells court it may sue ChinaChem over Syngenta acquisition | Former IDF Chief of Staff Halutz quits as chairman of Jobookit

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Trucks drive in front of Teva Pharmaceutical Logistic Center in the town of Shoam, Israel.
Trucks drive in front of Teva Pharmaceutical Logistic Center in the town of Shoam, Israel.Credit: AP

India’s Dr. Reddy’s to buy eight generic drugs from Teva and Allergan

India’s second-largest drug maker, Dr. Reddy’s Laboratories, said over the weekend it had agreed to buy eight generic drugs from Teva Pharmaceuticals and Allergan for $350 million in cash, in a move that will help clear the way for Teva to acquire Allergan’s generic drug business. Teva needs to sell some of its product lines to win U.S. antitrust clearance for the $40.5 billion acquisition. Dr. Reddy’s said some of the drugs were awaiting U.S. approval and others were already on the market. In related news, Teva said it would stop selling its migraine patch treatment Zecuity after users reported burns and scars where it was applied. The company says anyone who has a patch should not use it. Zecuity is a disposable battery-powered patch that is applied to the upper arm or thigh to ease migraine headaches. The patch delivers medicine through the skin. Teva shares ended down 0.1% at 207.30 shekels ($53.72). (Reuters and AP)

Discount tells court it may sue ChinaChem over Syngenta acquisition

Discount Investment Corporation and its Koor Industries unit may sue China National Chemicals Corporation for violating a non-compete agreement it made when it bought a 60% controlling stake in the agrochemicals company Adama. The two companies  made known their position in a statement to the Tel Aviv Stock Exchange Monday, which came in response to a shareholder suit that seeks to bar from Adama’s board four directors appointed by ChemChina. The shareholders claim the directors have a conflict of interest, and the plaintiffs asked the court to declare the Chinese company in violation of the non-compete clause after it agreed in March to buy Switzerland’s Syngenta, an Adama competitor, for $43 billion.  Attorneys for Discount and Koor asked the court to throw out the suit but said they shared the plaintiffs’ view that ChemChina was in violation of the non-compete clause. Sources said it was likely Discount and Koor would seek cash or other compensation. Discount shares ended down 5.1% at 8.90 shekels ($2.31). (Yoram Gabison)

Former IDF Chief of Staff Halutz quits as chairman of Jobookit

Dan Halutz, the former Israel Defense Forces chief of staff, said Monday he was stepping down as chairman of Jobookit Holdings, a tiny company traded on the Tel Aviv Stock Exchange, after three years on the job. Halutz, who quit as chief of staff in 2007 after a critical report on his handling of the Second Lebanon War, also had a difficult stint running Jobookit, a company that develops online job-recruiting technology and operates three websites for video sharing. The company’s market capitalization declined from a tiny 31 million shekels ($8 million) when he started to just 14 million Monday when its share price fell 1.25% to 25 agorot.  In the first quarter Jobookit had revenues of $530,000, down from $600,000 a year earlier, although it managed to break even after running up a $170,000 loss a year earlier. Halutz held a 1.2% stake in the company. (Omri Zerachovitz)

Telecom stocks, European bourses carry Tel Aviv shares lower

The Tel Aviv Stock Exchange ended sharply lower Monday as telecoms shares tanked and European markets fell to their lowest level in more than two months amid widespread unease in markets over a possible British exit from the European Union. Resuming trading after a long Shavuot holiday weekend, the benchmark TA-25 index ended down 1.3% at 1,412.44 points, while the TA-100 lost 1.3% to 1,229.98. Turnover was 1.28 billion shekels ($330 million). The Communications Index ended down 2.7% at 941.70 points on concerns about the Golan-Hot deal (see story on this page), but the declines were felt across the board.  Among the biggest losers on the TA-100, TowerJazz dropped 4.3% to 47.76 shekels and Mizrahi Tefahot Bank lost 2.9% to 43.19. Amot ended down 0.4% at 14.93 after its parent company, Aloni Hetz, bought 10 million Amot shares off the floor last Thursday at just 14.50 shekels each. Mannkind led TA-100 gainers, advancing 2.4% to 4.05 after it said studies showed its inhaled insulin treatment Afrezza had faster onset times than injectable rivals. (Ruti Levy)

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