The Ticker / TA-25 Hits Record High, Then Pulls Back

Teva seeks medical-marijuana patents; FIMI raising $1 billion for private equity fund; Tiv Taam makes offer to Eden Teva Market.

Eyal Toueg

So near and yet so far. The Tel Aviv Stock Exchange’s TA-25 touched a record high on Tuesday before falling back to leave it just five points short. The benchmark index ended down less than 0.1%, but no matter, at 1,710.90 points a new high will have to wait for another day.

The TA-100 fell 0.2% to finish at 1,475.77 on turnover of 1.16 billion shekels ($300 million). The big losers were biotech companies and insurers. Compugen fell 3.5% to close at 26.75 while insurance companies Phoenix and Clal Insurance dropped 3.1% to 11.63 and 3% to 66.09, respectively. IDB Development Corporation led the TA-100 stocks down on a drop of 4.8%, leaving it at 2.26 shekels. In the fixed-income market, the government’s 10-year shekel bond fell 0.19% to raise its yield to 2.42%. The dollar and euro extended their losses against the shekel, with the greenback depreciating another 0.4% to a Bank of Israel rate of 3.8090.

Teva seeks medical-marijuana patents

Teva Pharmaceuticals is offering to buy patents from One World Cannabis, an Israeli drug-development company specializing in medical marijuana, TheMarker has learned. The Israeli drug maker responded that it does not comment on rumors regarding its strategic moves, but market sources said Teva had asked to start negotiations on purchasing several patents. OWC, which is traded over-the-counter in the U.S., recently completed a study using cannabinoid-based therapies to treat myeloma, and last week filed two provisional U.S. patent applications for cannabis extracts and a delivery system to treat fibromyalgia and migraines. OWC shares were up 2.6% at 24 cents in New York early afternoon local time. 

FIMI raising $1 billion for private equity fund

FIMI, Israel’s oldest and largest private equity firm, said yesterday it has begun fundraising for a new $1 fund. As with its five previous funds, which have a combined $2.1 billion under management, FIMI said it would acquire Israeli companies with overseas operations and significant exports. “The new fund will continue the strategy of investing in companies with significant growth engines, bringing them to change and turning them into leaders in their fields,” said senior partner Gillon Beck. It will be the first new fund for FIMI, which was founded by Yishai Davidi, since 2012 when it raised $850 million. 

Tiv Taam makes offer to Eden Teva Market

A day after Rami Levy agreed to buy seven supermarkets from the ailing Mega chain, another food retailer is offering to buy some of the assets of Eden Teva Market, a sister company of Mega that sells organic and health food. Tiv Taam said yesterday its board had approved making the offer and was awaiting a response from Dorit Levy Tyller, who was appointed received for EdenTeva Market. Tiv Taam didn’t provide any further details.

Meanwhile, Mega is launching a 3 million-shekel ($790,000) advertising campaign urging shoppers to come back to its stores after a period of turmoil as it negotiated debt-bailout terms with creditors. “We’re starting a new path” is the campaign slogan and will feature employees, who as part of the rescue plan, now own a third of the chain. Tiv Taam shares climbed 3.9% higher at 2.07 shekels.

Radcom sinks after sales show decline

Radcom shares were tumbling in New York after the consumer-experience software maker said yesterday that sales for the second quarter were down from a year earlier. The company said revenues declined to $4.8 million from $5 million in the second quarter of 2014. “Our sales for the second quarter were below our internal expectations, reflecting the slowdown in decision-making regarding a specific deal in Russia,” said CEO David Ripstein. Not counting some items, net income climbed to $605,000, or 7 cents a share from $360,000, or 4 cents, a year earlier. Radcom shares were down 8.7% at $9.58 early afternoon local time in New York.