"On the basis of my close familiarity with Phillip Frost, the idea that he would Teva's headquarters to US sounds utterly delusional to me," Prolor president Shai Novik told "Globes" today. Frost is chairman of Prolor Biotech Inc. (Bulletin Board: PBTH) and vice chairman of Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA).
Novik was responding to yesterday's reports that Frost was planning to organize a group of US investors who would support his appointment as chairman of Teva, on the assumption that chairman Eli Hurvitz will not return from his medical leave. The reports added that Frost then planned to move Teva's headquarters to the US.
Frost, 73, is the largest private investor in Teva, with a 1.6% stake. He was chairman of Ivax which Teva acquired in 2005 for $7.4 billion.
In the three weeks since Hurvitz left on medical leave, Teva has issued no updates about his condition. Reports claim that he will not return to his post anytime soon. Sources at Teva yesterday denied the reports about a possible struggle for control at company involving Frost.
Frost is also an investor in Protalix Biotherapeutics Inc. (AMEX:PLX). He helped lead the company's merger with a US public company. Run by president and CEO Dr. David Aviezer, Protalix is developing recombinant therapeutic proteins. Hurvitz is also an investor.
Frost owns 23% of Prolor, which has a market cap of $96 million. The company, run by CEO Dr. Abraham Havron, is developing a long-lasting human growth hormone.
"I don’t know whether Frost will be Teva chairman or not," said Novik. "He is the vice chairman, and it cannot be ruled out that, in future, he might be appointed chairman. But even if that happens, I believe that this would be a good thing for Teva. Just as Eli Hurvitz is a wonderful chairman who grew Teva into a giant, I believe that Frost will proudly continue on Hurvitz's road. I don’t see Frost as someone who would look at Teva through an American's eyes. That's not him."
Teva's share fell 2.2% at the opening on Nasdaq today to $60.30. The share fell 0.4% on the TASE to NIS 232.40.
Published by Globes [online], Israel business news - www.globes-online.com - on March 8, 2010
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