Drug development company BiolineRX Ltd. (TASE:BLRX) CEO Dr. Morris Laster will resign and Dr. Kinneret Savitzky, the general manager of BioLine Innovations Jerusalem, has been appointed as his successor. She will take up the post on January 1, 2010, when Laster's resignation takes effect.
Bioline RX stated in a notice to the Tel Aviv Stock Exchange (TASE) today that Laster left for personal reasons. Laster will continue to serve as an advisor to the company for one year, for payment of NIS 60,000 a month through June, and NIS 30,000 a month for the rest of the year.
Dr. Savitsky will earn a gross monthly salary of NIS 70,000 and will also receive options on BiolineRX 500,000 shares. The options will vest over four years.
BiolineRX also published its financial report for the third quarter of 2009. The company reported NIS 26.1 million revenue for the third quarter. The company had no revenue last year. Net loss narrowed to NIS 17.2 million for the third quarter from NIS 29.5 million for the corresponding quarter of 2008.
BiolineRX had NIS 59.8 million in cash and cash equivalents at the end of September, down from NIS 112.9 million a year earlier. Current assets fell to NIS 94.6 million at the end of September from NIS 119 million a year earlier, while short-term liabilities rose to NIS 44.6 million from NIS 27.9 million.
In September, BiolineRX signed a contract to license its flagship product, BL-1040 to Ikaria Holdings Inc. for $285 million, not including royalties on sales. BL-1040 is a heart muscle stabilizing drug to treat heart attack victims. The first $7 million from the contract was received after the third quarter. Half of the balance will be paid subject to the company meeting stipulated R&D and regulatory milestones. The other half will be paid subject to meeting sales targets.
BiolineRX's share fell 1.2% in early trading today to NIS 4.96, giving a market cap of NIS 563 million.
Published by Globes [online], Israel business news - www.globes-online.com - on November 25, 2009
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