Sources inform ''Globes'' that IDB Holding Corp. Ltd. (TASE:IDBH) life sciences investment arm Clal Biotechnology Industries Ltd. (TASE: CBI) has cancelled a planned $2 million investment in cancer drug development company Biocancell Therapeutics Ltd. (TASE:BICL), in which it already owns a 23.6% stake. Biocancell notified the TASE on Friday that the negotiations for the investment had been halted, without disclosing why, however the sources said that Clal Biotech initiated the cancellation.
In August, Biocancell notified the TASE that Clal Biotech wanted to make a further investment in the company, although it did not disclose any details about the structure of the proposed investment.
The cancellation is apparently because of a power struggle underway at Biocancell between chairman Prof. Avraham Hochberg and former CEO Avi Barak, backed by Clal Biotech.
Today, Biocancell announced that Atox Bio Inc. CEO Uri Danon has been appointed CEO. Danon previously served as president of Biocancell, and before that he was Product Development Manager in the Innovative Division at Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA).
Biocancell's share rose 1.7% by midday to NIS 3.23, giving a market cap of NIS 55 million.
Published by Globes [online], Israel business news - www.globes-online.com - on September 6, 2009
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