Teva’s Actavis Division Loses U.K. Patent Suit Infringement Case

Government looking for management companies for state-backed tech funds; Migdal to invest $39m in U.S. office building; TASE opens trading week on the plus side.

This file photo taken on June 10, 2013 shows  the outside of the factory of Israel's Pharmaceutical Industries Teva in Jerusalem.

Government looking for management companies for state-backed tech funds

The Israeli government is looking for firms to manage four high-tech investment funds that will be traded on the stock exchange and given state protection for any losses, a government statement said on Sunday. The government has been under pressure to open the country’s thriving tech sector to more local investment. Up to four management firms will be selected for the funds, which will each have a minimum of 400 million shekels ($113 million), the statement said. The funds will feature investments in tech stocks that are already traded, while at least 30% will be made in early stage startups, enabling investors – including institutions – to benefit from returns in the tech sector in a relatively secure manner. For each fund, the government will provide guarantees of up to 50 million shekels ($14 million). “Our proposal is intended to create an investment instrument for the general public that will enable it to participate for the first time in the success of Israeli technology companies, while providing state protection,” said Shmuel Hauser, chairman of the Israel Securities Authority. (Reuters)

Teva’s Actavis division loses U.K. patent suit infringement case

Pharmaceutical company Eli Lilly won a years-long patent dispute with Teva Pharmaceutical’s Actavis Generic division on Friday after the U.K. Supreme Court ruled that Actavis’ versions of Lilly’s top-selling cancer drug Alimta directly infringe on certain Lilly patents in Britain, France, Italy and Spain. Teva owns the generic versions of Alimta in question after buying Actavis last August from Allergan. Alimta is Lilly’s top-selling oncology treatment and generated sales of $2.3 billion last year. The British court decision applies to about $300 million worth of annual sales, Evercore ISI’s Umer Raffat said. A U.S. appeals court ruled in favor of Lilly in a similar case in January. It still faces a review of the issue by the U.S. Patent Trial and Appeal Board, which analysts said could result in further appeals if it is not in Lilly’s favor. Teva’s shares on the Tel Aviv exchange fell 1.33% on Sunday, closing at 111.50 shekels ($31.59). (Reuters)

Migdal to invest $39m in U.S. office building

Migdal Insurance will invest $39.1 million in a San Francisco office building that is wholly owned by Newport Beach, California-based KBS Strategic Opportunity, the two companies announced on Sunday. The transaction pegs the value of the building, which is located near the San Francisco’s financial district at 353 Sacramento Street, at $173 million. Migdal will be paying commissions totaling about $1.3 million for brokering the deal to Keith Hall, the CEO of the KBS Strategic Opportunity REIT that owns the building, and Peter McMillan III, the REIT’s chairman, with the approval of the KBS board. KBS, which specializes in acquiring income-producing property, particularly distressed properties, raised 950 million shekels ($269 million) through a bond offering about a year ago on the Tel Aviv Stock Exchange. (Eran Azran)

TASE opens trading week on the plus side

Shares traded generally higher on the Tel Aviv Stock Exchange on Sunday. The benchmark Tel Aviv 35 index was up 0.45%, closing at 1,434.78 points while the broader Tel Aviv 125 index was up 0.65% at 1,297.10 for the day. The Banks5 index was a particular standout, ending the day at 1744.15, up 0.91%. Shares of Bank Leumi and Bank Hapoalim were heavily traded. Leumi closed 1% higher at 17.17 shekels ($4.86) while Bank Hapoalim’s stock rose 0.92% to 24.24 shekels. Mizrahi Tefahot shares jumped 1.08% to 65.80 shekels. Investment firm Meitav Dash’s stock was up 4.24% to 15.23 shekels in volume more than six times the daily average on news of contacts between Aharon Fogel, the chairman of the board of Zim Shipping, and the XIO fund, which is seeking to buy Meitav Dash and a report that Fogel would be chairman of the Meitav board if it is sold to XIO. Ashtrom’s shares gained 2.03%, closing at 12.05 shekels, after the announcement that it landed construction of a new 700 million shekel project on Da Vinci Street in Tel Aviv for Acro Real Estate and Canada Israel. (Shelly Appelberg)