Shares of Israeli Startup Combating Bladder Cancer Skyrocket on News of Potential Investment

Business in Brief | Frutarom to buy remainder of Enzymotec ■ Israeli renewable energy firm to get in on Hungarian market ■ TA-35 starts week on upbeat note

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File photo: Medicine
File photo: MedicineCredit: Bloomberg

Frutarom to buy remainder of Enzymotec

Flavor and fine ingredients company Frutarom Industries said on Sunday it agreed to acquire the 81% of special nutrition firm Enzymotec that it doesn’t already own for $11.90 a share, or about $168 million. Frutarom had already acquired 19% of Enzymotec for $42 million. Enzymotec will be a wholly owned subsidiary and be delisted from trading. Frutarom expects the deal to close by early next year. Enzymotec develops nutritional ingredients and medical foods. Its technologies enable extraction of lipids from natural sources. It has 235 employees, mainly in Israel and the United States, and its sales for 2017 until June totaled $47 million. Enzymotec’s nutrition segment will contribute to the expansion of Frutarom’s portfolio of products in the areas of pharmaceuticals, dietary supplements, foods for infants and elderly clinical nutrition, said Frutarom chief executive Ori Yehudai. Frutarom shares closed up 3.6% on Sunday at 28.95 shekels. (Reuters)

Shares of startup combating bladder cancer skyrocket on news of potential investment

Shares of BioCancell Therapeutics skyrocketed over 31% on Sunday after the company reported negotiations with a group of investors over a possible investment valuing it at $45 million, or 1.47 shekels per share. The share price represents a 64% premium over its previous closing price. BioCancell is a clinical-stage biopharmaceutical company aiming to offer “potential therapy in late-stage development for non-muscle-invasive bladder cancer,” according to its website. The company, controlled by ClalTech, remarked that the group of Israeli and American investors is interested in investing $20 to $25 million in a private offering, but conditioned the investment in privatizing BioCancell. The company’s goal is that the plasmid it is developing, known as BC-819, will be engineered to express a lethal diphtheria toxin that will specifically target malignant cells. Shares of BioCancell closed on Sunday at 1.17 shekels per share. (Yoram Gavison)

Israeli renewable energy firm to get in on Hungarian market

Enlight Movilim, a renewable energy venture, has completed the acquisition of three companies holding rights in three solar energy projects in Hungary that employ photovoltaic technology. The projects would produce 57 megawatts of energy. Parent company Enlight has a 50% stake in the company. The renewable energy market in Hungary is growing after its government committed to the European Union to increase its use of renewables from 7% in 2015 to 11% by 2020. The projects have received most of their development permits and are expected to receive permits to sell electricity in the coming three months. The company estimates it will invest some 60 million euros into the projects, 25% with its own capital and the rest through debt financing. Enlight predicted the projects will generate annual revenues of 6.8 million euros under regulated prices. CEO Gilad Yavetz said he expected the company to begin earning revenues in late 2019. Enlight closed up 2.3% on Sunday at 1.59 shekels (Yoram Gavison)

TA-35 starts week on upbeat note

The trading week on the Tel Aviv stock exchange started with modest gains, prompted by Nasdaq’s rise on Friday. Entering the Q3 reporting season, the TA-35 rose 0.3%, the TA-125 closed up 0.5% and the banks’ index ended ahead by 0.4%. Gas stocks recovered from losses last week. Mazor Robotics jumped a further 4.5% to 10.32 shekels, following a 3.3% gain on Thursday. Dual-listed stocks Nice, Amot Investments and Ormat Technologies all enjoyed Wall Street bumps, rising 2.3%, 2.0% and 1.4%, respectively. Pharmaceuticals continued to suffer as Teva slid a further 2.6%, having fallen 24% this months and 65% in 2017. Perrigo and Mylan shares lost 0.7% and 1.9%, respectively. Cellular firms closed up, with Partner and Cellcom gaining 0.4% and 0.8%, respectively. Delek Drilling and Ratio Oil Exploration closed up 2.2% and 2.4%, respectively. In the bond market, the Tel-Bond 60 edged up 0.1% while 10-year government bonds jumped 0.14%, decreasing the yield to 1.81%. (Shelly Appelberg)