Bioline jumps on reports of licensing agreement

The share of drug developer BiolineRX Ltd. (TASE:BLRX) jumped 4.77% by early afternoon to NIS 1.62 after reports that the company is very close to signing a marketing licensing agreement for its BL-1040 drug.

BL-1040 is a heart muscle stabilizing drug, which it is hoped will become a breakthrough treatment for preventing further heart damage following a heart attack, or acute myocardial infarction.

Today was also the day for trading the company's rights, which entitle shareholders to buy five shares for NIS 1.13 each for every seven shares that they hold. In less than the first half hour this morning trading volume on BiolineRX shares equaled the average trading volume for a full day of the shares over the last 90 days. In early trading the share rose 11.7% although it subsequently gave up over half of these gains.

The rights issue resulted in two directors resigning earlier this month for fear that the holding of the companies they represent will be diluted and in recent days the share has fallen 25.6%.

BiolineRX reported that the potential customer for BL-1040 asked to accelerate the negotiations, so that as soon as an agreement is reached, it can be signed within a few days.

Shareholder Pan Atlantic Investment exercised all its rights and bought 5.14 million shares of the company for NIS 5.8 million. Pitango sold some of its rights 1,000,000 rights at NIS 0.536 per unit and 2 million at NIS 0.336 per unit.

Published by Globes [online], Israel business news - www.globes-online.com - on June 30, 2009

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