IDB Holding Corp. (TASE:IDBH) unit Clal Biotechnology Industries Ltd. (TASE: CBI) reported a capital gain of NIS 24 million in the first quarter of 2009. CBI is one of few profitable biomed firms on the TASE. The gain stemmed principally from Teva Pharmaceutical Industries Ltd. (Nasdaq:TEVA; TASE:TEVA) investment in Andromeda Biotech Ltd..
CBI owns 95% of which is a biopharmaceutical company focused on the development of innovative therapies for autoimmune diabetes. The company's lead product DiaPep277, for treating type 1 diabetes is currently in phase III clinical trials. The second stage of Teva's investment in Andromeda resulted in a milestone payment in the first quarter of 2009.
CBI has NIS 190 million available in cash which is similar to the sum it has when the shares were first issued on the TASE.
The next milestone payment to be paid to CBI for Andromeda by Teva will amount to NIS 43 million and should be made in the next quarter.
As a holding company CBI is liable to major fluctuations from profit to loss from quarter to quarter. The company lost NIS 76 million in 2008.
Another promising CBI portfolio company is D Pharm Ltd. (41%), which has just applied to the U.S. Food and Drug Administration (FDA) to start phase III clinical trials for its treatment for strokes.
D Pharm is expected to raise capital to fund the trial with not all the costs expected to reach tens of millions of dollars coming from CBI's coffers. However, CBI will fund some of the trial in order to maintain the level of its holding in the company.
Published by Globes [online], Israel business news - www.globes-online.com - on May 12, 2009
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