DNA Biomedical Solutions Ltd. (TASE: DNA), the newest holding company of Dr. Zeev Bronfeld and Meni Mor, is convening shareholders to discuss its new contract with Oramed Pharmaceuticals Inc. (Bulletin Board:ORMP); DAX:OJU), a developer of oral versions of existing drugs. Last year, the two companies set up a joint venture, Entera Bio Ltd.; DNA wants to change the terms of the agreement to increase its stake in Entera to improve its intellectual property rights in the joint venture.
DNA and Oramed each own 42% of Entera, whose CEO owns the rest. DNA now proposes to acquire most of Oramed's stake in Entera, to give DNA 87% of the joint venture and leaving Oramed with 3%, for $1.15 million, of which $700,000 will be in cash and the balance in 5% of DNA shares. The agreement stipulates that the cash payment will be in five months.
As for Entera's intellectual property, Oramed will transfer to Entera full ownership of the patent underpinning all of Entera's products, except for insulin and influenza. Oramed has already given Entera a license to develop it for specific diseases.
DNA's share price fell 2.2% today to NIS 0.27, giving a market cap of NIS 37 million. Oramed's share fell 5% at the opening in New York to $0.29, giving a market cap of $19 million.
Published by Globes [online], Israel business news - www.globes-online.com - on February 24, 2011
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