Business in Brief: Trump Immigration Curbs Hit Tel Aviv Shares

Teva gets U.S. approval in generic inhaler; Silicom quarterly net profit drops despite increase in revenues.

The Tel Aviv Stock Exchange (TASE) building in Tel Aviv.
Bloomberg

Trump immigration curbs hit Tel Aviv shares

Tel Aviv joined a slump in global equity markets Monday after U.S. President Donald Trump’s immigration curbs stirred concerns about the impact of his policies on global trade and the economy. The TA-25 index finished down 1.3% to 1,407.24 points, while the TA-100 lost 0.9% to 1,240.74, in thin trading of just 991 million shekels ($261.8 million). Banks were the biggest losers, paced by a 2.1% decline in Leumi to 15.58 shekels and a 1.4% drop in Hapoalim to 22.76. Israel Chemicals ended 1.3% lower at 17.10, extending losses on poor quarterly results for fellow fertilizer producer Potash Corporation of Saskatchewan. Biotech shares were higher, with Clal Biotechnology adding 10.8% to 2.74 and Brainsway rising 3.8% to 18.06. Neither company reported any news. Cellcom Israel rose 0.9% to 39.25 and Partner Communications 0.6% to 22.04 after Excellence put Buy recommendations on the stocks and set target prices of 45 and 25 shekels, respectively. (Shelly Appelberg)

Teva gets U.S. approval in generic inhaler

Market reaction was mild after Teva Pharmaceuticals said Monday it won U.S. approval to market a copy of GlaxoSmithKline’s best-selling Advair inhaler. The reason, said analysts, is that Teva’s version, AirDuo RespiClick, is only approved for asthma, while Advair is also widely used for chronic obstructive pulmonary disease. Teva said it would launch AirDuo later this year, but did not say how much its product would cost. AirDuo provides patients with the same two drugs as Advair – fluticasone propionate and salmeterol – but it delivers a lower dose of salmeterol. It also uses Teva’s RespiClick inhaler rather than a copy of GSK’s device. Global Advair sales were $5.6 billion in 2015, with half that generated in the United States. Teva’s product promises to grab some of this business in asthma, but the bigger threat will only come from fully substitutable generic copies of Advair, which are still pending approval. Teva shares ended up 0.2% at 130.30 shekels ($34.42). (Reuters)

Silicom quarterly net profit drops despite increase in revenues

Silicom, a maker of high-performance networking and data infrastructure solutions, reported record high revenues for 2016’s fourth quarter, but net profit dropped 22%, sending its U.S. shares tumbling Monday. The Kfar Sava-based company said net profit for the three months, not counting certain items, fell to $4.9 million, or 66 cents per diluted share – down from $6.3 million, or 87 cents, a year earlier. Revenues were $28.3 million, setting a new record for Silicom, but that was just a 3.3% increase from the same time in 2015. For the full year, Silicom’s 2016 revenues surpassed the $100-million milestone for the first time ever and were up 21% from 2015. But net profit fell to $16.6 million, or $2.24 per diluted share, from $17.3 million, or $2.35 a share. Shares of Silicom were down 4.45% in late New York trading, to $37.31. (TheMarker Staff)