Business in Brief: Navidea Biopharmaceuticals Shares Surge After Deal With Cardinal Health

Pace of TASE bond issues strong in August | Housing & Construction to build rental housing in Jerusalem | TASE leading indexes barely budge.

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Jerusalem housing construction. A crane towers over a construction site in the capital.
Jerusalem housing construction.Credit: Daniel Bar-On

Shares of Navidea Biopharmaceuticals surge nearly 53% on deal with Cardinal Health

Shares of Navidea Biopharmaceuticals jumped by 52.9% to 2.07 shekels (55 cents) in trading on the Tel Aviv Stock Exchange Tuesday, on turnover of more than 4.2 million shekels ($1.1 million), on news that the company had signed a letter of intent to sell its North American rights to its drug Lymphoseek, an injection used to diagnose cancer, to Cardinal Health Systems of the United States. The agreement provides for an $80-million payment up front but could be worth as much $310 million long-term if certain conditions are met. The good news followed a setback last week for the company, after a Texas court ordered company bank accounts to be turned over to a lender that claimed Navidea was not meeting its loan payments. The ruling, which the company said it would appeal, sent the share price for the company tumbling by 37%. Navidea is based in the Columbus, Ohio suburb of Dublin and is traded on the New York MKT exchange in addition to Tel Aviv. (Uri Tomer)

Pace of TASE bond issues strong in August

Although August is traditionally a slow month for bond issues on the Tel Aviv Stock Exchange, last month remained relatively strong. At 3.5 billion shekels ($905 million), August’s bond figure was a billion shekels higher than August of last year, although it was still considerably lower than July 2016, when more than 6 billion shekels in bonds were issued. August of this year saw 15 companies from a range of business sectors issuing bonds of varying degrees of risk, although real estate companies were particularly prominent, according to S&P Ma’alot. The August figure does not include a 400-million-shekel private bond issue to institutional investors offered by Matam, the business and high-tech complex in Haifa owned by Gav-Yam and the Haifa Municipality. The August bond issue figures bring the total for the first eight months of the year to about 40 billion shekels, similar to last year’s level at that point. (Uri Tomer)

Housing & Construction to build rental housing in Jerusalem

Housing & Construction has won a public tender from the Israel Land Authority and from the governmental rental housing firm known as Apartment for Rent to construct 279 housing units in Jerusalem’s northern Talpiot neighborhood, it was announced Tuesday. Twenty-five percent of the units will be rented at 80% of market rent rates for those qualifying through the Construction and Housing Ministry. The market-rate apartments will be leased for five years with an option to renew for an additional five years. The price tag for the project, which will include 13 six-story buildings as well as commercial space, is 66 million shekels ($17.5 million). Housing & Construction has committed, as part of the cost, to develop public parks and to build three kindergarten classrooms. After 20 years, the Israel Land Authority, which owns the land on which the project is being developed, will be entitled to sell the rental units. (Nimrod Bousso)

TASE leading indexes barely budge

The benchmark TA-25 index slipped slightly in trading on the Tel Aviv Stock Exchange on Tuesday, closing down 0.05% to 1,452.91 points, while the broader TA-100 index inched up 0.09% to 1,274.29 points. Trading volume was nearly 1.1 billion shekels ($2.91 million). In addition to Navidea Biopharma, shares of which surged 52.9% (see story above), stocks of note included Perrigo, which closed up 1.28% to 347.30 shekels and the Delek Group, which declined by 1.47% to 784 shekels. The corporate bond market indexes showed only minor shifts. The Tel Bond-20 index closed off 0.04%, the Tel Bond-40 index closed up 0.01% and the Tel Bond-60 index closed up 0.02%. (Omri Zerachovitz)