Macrocure Plunges, a Day After Its U.S. IPO

Perion shares fall on reports of problems with Google, Microsoft; Wall Street pushes Tel Aviv shares lower.

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Macrocure plunges, a day after its U.S. IPO

Macrocure, a biotechnology company developing advanced wound care therapies, saw its share price plunge Thursday, a day after it raised $53.9 million in an initial public offering. The company was forced to reduce the price of 5.35 million ordinary shares in the IPO by 29%, to $10 each, valuing the company at $108 million, well below the range of $13 to $15 it had sought. It was the second Israeli biotech company this week to slash its valuation to ensure its IPO went through, after Mapi Pharma sold stock at $8 a share, instead of $13 to $15 as it had hoped. Macrocure was founded in 2008. Its flagship CureXcell wound healing treatment is in Phase III clinical trials. Macrocure was trading at $7.85 in late trading on the Nasdaq Global Market on Thursday. (TheMarker)

Perion shares fall on reports of problems with Google, Microsoft

Perion Network shares ended down 4.7% to 28.30 shekels ($8.25) on Thursday after TheMarker reported that it had cut by 30% its profit-sharing terms with business partners. The company, which makes desktop email, photo sharing and web security applications, took action amid a growing crisis with Google and Microsoft, whose Chrome and Bing search engines are Perion’s biggest sources of revenue, accounting for 22% and 63%, respectively in 2013. The problems led to the resignation of Jon Wine, head of the Client Connect unit that Perion bought from closely held Conduit last year. Perion has not responded to the report publicly. A hint of the problem came from a Tel Aviv Stock Exchange report by a Perion business partner, Whitesmoke Software, that said Perion would be paying 70 cents instead of $1 for every software program it distributes. (Shelly Appelberg)

Wall Street pushes Tel Aviv shares lower

The Tel Aviv Stock Exchange ended the week lower in heavier than usual trading as Wall Street reeled from ongoing tensions between Russia and the West and Argentina’s second default in 12 years. The benchmark TA-25 index ended down 0.45% at 13,92.45 points, while the broader TA-100 index lost more than 0.6% to 1,246.10. Turnover was 1.03 billion shekels ($300 million). Bonds were sharply lower after the U.S. Federal Reserve said it was paring back its stimulus program as the U.S. economy shows further signs of growth. The price of the Israel government’s 10-year shekel bond dropped 0.57% to raise its yield to 2.77% while its equivalent inflation-linked bond was down 0.46% to a yield of 0.65%. Technology stocks were mostly lower, but LivePerson jumped 19.2% to 40.27 shekels after it reported stronger-than-forecast earnings overnight and raised its forecast for the rest of 2014.
(Eran Azran)