Business in Brief: Teva Clears Way to Sell Medical-device Unit

Defense Ministry lifts suspension of marketing and export license to troubled Israeli drone maker Aeronautics ■ Tel Aviv shares close at their highest in seven weeks

FILE PHOTO: Teva workers protesting in Kiryat Shmona, Israel, December 14, 2017.
Gil Eliyahu

Teva clears way to sell medical-device unit

Teva Pharmaceuticals is expected to sell its Migada medical device business shortly to the private equity investor FIMI Opportunity Funds for $45 million. The sale was made possible after an agreement was struck between management and labor — and signed off on by FIMI — that will govern working conditions for the plant’s 170 employees under its new ownership. Teva had been angling to sell the Kiryat Shmona-based unit as part of its cost-cutting drive under CEO Kare Schultz because it falls outside the company’s core business of generic drugs. Migada’s flagship product is Tevadaptor, a syringe adapter to protect patients and health professionals from being harmed by hazardous drugs administered intravenously. Migada generates earnings before interest, taxes, depreciation and amortization equal to about 15% of its estimated annual turnover of $30 million to $35 million. Teva shares ended up 2% at 72.32 shekels ($20.03). (Yoram Gabison)

Aeronautics says export license restored

The troubled Israeli drone maker Aeronautics said Monday that the Defense Ministry has lifted the suspension of its marketing and export license to a foreign customer. The reversal comes nearly two years after the government froze approval for the firm’s attack drones to a significant foreign customer, without identifying the client or country. Police said they were investigating Aeronautics about a deal involving the company, which denied any wrongdoing. Aeronautics said in Monday’s regulatory filing it could resume supplying drones to the customer, but it said a temporary suspension of licenses for CEO Amos Mathan and two other executives to handle exports remained in place. Aeronautics, which has received an 850 million shekel ($235 million) buyout offer from state-owned Rafael Advanced Defense Systems and businessman Avihai Stolero, manufactures UAVs for military and commercial use. Aeronautics shares ended down 2% at 12.20 shekels ($3.38). (Reuters)

Shares resume rise to a seven-week high

After a two-day breather, Tel Aviv shares resumed their rally Tuesday to close at their highest in seven weeks. The TA-35 and TA-125 indexes each rose nearly 0.6% to end at 1,562.33 and 1,422.30 points, respectively, on turnover of 1.16 billion shekels ($320 million). Volume leader Bezeq rose 2.7% to close at 3.19; parent company B Communications added 2.65% to 17.04. Allot jumped 8.5% to 27.51 after posting a narrower than expected loss in fourth quarter 2018. Together soared 19.6% to 7.20 after the medical cannabis company hired former Israel Police chief Yohanan Danino as chairman. After the start of trading in its shares was delayed, Opko Health plunged 20% to 10.40. The U.S. company said it was issuing $200 million in convertible bonds. In foreign currency trading, the dollar weakened further, losing nearly 0.5% to a representative rate of 3.61 shekels. The euro lost 0.7% to 4.1249 shekels. (Eran Azran)