IDB Holding Corp. Ltd. (TASE:IDBH) life sciences investment arm Clal Biotechnology Industries Ltd. (TASE: CBI) swung to a loss for the first quarter of 2010. The company posted a net loss attributable to its parent company of NIS 23.5 million (NIS 0.26 per share) for the first quarter, compared with a net profit attributable to its parent company of NIS 32.4 million for the corresponding quarter of 2009.
Revenue fell to NIS 12.5 million for the first quarter from NIS 58.3 million for the corresponding quarter.
The swing to loss was due to a drop in profits from changes in fair value of derivatives to NIS 131,000 for the first quarter from NIS 28.1 million for the corresponding quarter, a drop in profits from the sale of financial assets available for sale from NIS 329,000 for the corresponding quarter to zero for the first quarter, and a switch from a net financing income of NIS 12.7 million for the corresponding quarter to a net financing loss of NIS 5.9 million for the first quarter.
Clal Biotech reported a NIS 7.3 million loss on its share of subsidiaries' losses, compared with no charge on this item for the corresponding quarter.
Since the end of the first quarter, Clal Biotech has marked a number of major events, the biggest of which was bringing in an investor to portfolio company MediWound Ltd., on which Clal Biotech will report a capital gain of NIS 210-330 million. Clal Biotech owns 55% of MediWound, which is developing a treatment for burn wounds, and Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) owns 13%. Clal Biotech also owns 40% of Polyheal Ltd., which is also developing a treatment for chronic wounds, including burns.
Clal Biotech's share price fell 5.6% by midday to NIS 20.11, giving a market cap of NIS 2.06 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on May 16, 2010
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