Elbit Imaging Ltd. (Nasdaq: EMITF; TASE: EMIT) today announced that it plans to set up and then float on the Tel Aviv Stock Exchange (TASE) a wholly-owned subsidiary that will hold the company's stakes in InSightec Image Guided Treatment Ltd. and Gamida Cell Ltd. The plan is part of Elbit Imaging's restructuring and streamlining of its businesses.
Elbit Imaging currently owns 60% of InSightec, which develops and markets a focused ultrasound treatment for uterine fibroids, and 28% of Gamida Cell, which is developing stem cell therapies for blood cancers.
The main purpose of the measure is to raise capital for InSightec to develop and US Food and Drug Administration (FDA) and EU CE Mark certification for its cancer treatments. Elbit Imaging originally planned to float InSightec on Nasdaq in June 2005 at a company value of $500 million. The measure will also raise capital to finance Gamida Cell's Phase III clinical trial of its StemEx product for the treatment of leukemia treatment. The company also plans to develop the product for other indications.
Elbit Imaging co-CEO Dudi Machluf said, “We intend to use the IPO’s proceeds, should such be executed, to accelerate InSightec's development of several applications to treat major cancer diseases such as including, bone, prostate, breast, liver, and brain cancers. This will help InSightec to take rapid strides towards receiving both FDA and CE approvals for these cancer treatment technologies as well accelerating its efforts to obtain widely spread reimbursement coverage for its treatment for uterine fibroids.
"Additionally, the IPO proceeds will help accelerate the FDA approval process for Gamida Cell's flagship product, StemEx, which is currently in Phase III testing, as well as advance the product development of additional therapies."
Elbit Imaging's core business is real estate, a business it entered after chairman Mordechai Zisser took control of the company in 1999. The company builds and owns malls in Eastern Europe and India through Plaza Centers NV (LSE:PLAZWSE:WLZ).
Elbit Imaging's share rose 3% on Nasdaq yesterday to $22.90, giving a market cap of $1.24 billion. The share rose 3.8% by midday on the TASE today to NIS 88.05.
Published by Globes [online], Israel business news - www.globes-online.com - on February 2, 2010
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