Clal Biotechnology Industries Ltd. (TASE: CBI) plans to bring a partner into subsidiary MediWound Ltd., reducing its stake in the company to below 50%. Clal Biotech said that it will record a "very substantial capital gain" on the deal.
In a notice to the TASE today, Clal Biotech said that MediWound was in talks on a possible collaboration with Polyheal Ltd. (another subsidiary), as well as with other shareholders in both companies. The deal allows MediWound to add supplementary products to its Debrase gel for burn treatments. Polyheal has developed novel microsphere-based wound care technology for treating chronic wounds, such as skin ulcers, burns, trauma, and post-surgery wounds.
Clal Biotech owns 55% of MediWound and 40% of Polyheal. Teva Pharmaceutical Industries Ltd. (Nasdaq:TEVA; TASE:TEVA) owns 13% of MediWound, and has an option to increase its holding. Market sources believe that the collaboration between MediWound and Polyheal may involve Teva or foreign pharmaceutical companies.
Teva is the natural candidate to invest in MediWound, as the companies have a multistage marketing agreement. In October 2009, MediWound announced success in the Phase III clinical trial of its Debrase gel.
Clal Biotech added, "Polyheal continues, as part of its business strategy, to have contacts at various degrees of progress with several international pharmaceutical companies in order to consider options for business, and product development and commercialization collaboration."
Clal Biotech's announcement is a good example of the market adage, "buy on rumor, sell on news". The company's share price rose 14.5% in the past two sessions without any announcement from the company. There were rumors in the market and in online forums about an investment by Teva. Today, Clal Biotech's share price fell 1.8% by midday to NIS 22.07.
Published by Globes [online], Israel business news - www.globes-online.com - on April 12, 2010
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