Business in Brief: Teva Forges Joint Venture With South Korea’s Celltrion

Mylan shares jump on EpiPen agreement; bond offerings surge; Kenon suffers in the second quarter; stocks inch up.

Ofer Vaknin

Teva forges joint venture with South Korea’s Celltrion

Teva Pharmaceutical Industries said Thursday it was setting up a joint venture with South Korea’s Celltrion Healthcare to sell two generic versions of genetically engineered drugs in North America. Teva will pay Celltrion $160 million up front, of which up to $60 million will be either refundable or available as credit under certain circumstances. The companies will split the profits from the sale of the two drugs, Celltrion’s biosimilar version of Rituxan, which is used to treat non-Hodgkin’s lymphoma, chronic lymphocytic leukemia and rheumatoid arthritis, and a biosimilar version of Herceptin for the treatment of breast cancer. Both are currently under development. (Yoram Gabison)

Mylan shares jump on agreement to settle EpiPen case

Mylan shares gained 6.75% in Tel Aviv Sunday after the drug maker said it would pay $465 million to settle questions over whether it underpaid the U.S. government by misclassifying its EpiPen emergency allergy treatment. The stock closed at 150.20 shekels ($39.63). Mylan, which is also listed on the Nasdaq, has come under intense scrutiny after a series of drastic price increases. It has been lambasted by consumers and lawmakers for raising prices on the lifesaving EpiPen sixfold to over $600 for a package of two in less than a decade, making the devices unaffordable for a growing number of families. (Reuters)

Bond offerings surge on TASE in September

Although bond offerings usually pick up on the Tel Aviv Stock Exchange in September, this month the uptick was particularly impressive, with 15 billion shekels ($4 billion) in bond offerings on top of another 1.5 billion shekels raised through the TASE’s trading floor for institutional investors. September’s figure, which was boosted by five major bond offerings, was more than four times August’s figure and two and a half times July’s, even though July was a particularly active month. About 24 billion shekels was raised in bond issues from July through September, twice the number for both the first quarter and the same quarter a year earlier. So far this year 57 billion shekels has been raised in bond issues, 2 billion more than during the same period a year earlier. The figures are from S&P Ma’alot, Rosario Capital and Leader Capital Markets. (Uri Tomer)

Kenon loses $280 million in second quarter

Kenon Holdings says it lost $280 million in the second quarter amid its $72 million write-off on the value of its investment in Zim Integrated Shipping Services. The company, in which Idan Ofer owns a 46% stake, had turned a $21 million profit a year earlier. Kenon’s second-quarter report was delayed due to the delay of Zim’s report amid talks with the shipping company’s creditors to defer $115 million in payments. Kenon holds a 32% stake in Zim. (Yoram Gabison)

TASE edges up in light Sunday trading

The benchmark Tel Aviv-25 index rose 0.07% Sunday to 1,436.29 points, while the broader Tel Aviv-100 index ended 0.18% higher at 1,259.47. Volume was a light 558 million shekels ($147 million). The only index to decline was the Biomed, which fell 0.6% as Opko Health, the largest stock in the roster, dropped 5% to 37.87 shekels. Perrigo fell 3.7% to 346.80 shekels. (Uri Tomer)