Clal Biotechnology Industries Ltd. (TASE: CBI) reported today that it will record a gain of NIS 400-500 million on its 2010 financial report from the MediWound-Polyheal-Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) deal.
Trading in Clal Biotech shares was halted at 10:06, and is expected to resume shortly. The share price was up 1.6% before the halt.
Clal Biotech said that it received today a letter today from the Israel Securities Authority saying that it won't intervene in the company's position that it has stopped controlling MediWound with the closing of the transaction. That view essentially shows that the Securities Authority authorized the deal.
Clal Biotech owned 55% of MediWound and 41% of Polyheal. When all the stages of the deal are completed, Clal Biotech will own 29% of MediWound, which will wholly own Polyheal. Teva will own 51% of MediWound.
With the closing of the deal, Clal Biotech will recognize its remaining stake in MediWound on a fair value basis as of the date of the closing of the deal, December 30, 2010, and will begin to show it on an equity basis. As a consequence, the actual gain from the transaction will be determined by an outside assessor.
MediWound has developed a product called Debrase Gel Dressing, for the treatment of second and third degree burns. Polyheal has developed wound care technology for treating chronic wounds, such as skin ulcers and burns.
Published by Globes [online], Israel business news - www.globes-online.com - on March 3, 2011
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