Teva set to invest $22m in CureTech

Teva also has an option to fully acquire the lymphoma drug developer at a company value of $160 million.

Teva Pharmaceutical Industries Ltd. (Nasdaq:TEVA; TASE:TEVA) is expected to invest a further $19-22 million in CureTech Ltd. after the company yesterday reported preliminary successful results of its Phase II clinical trial of CT-011 stem cell treatment of Diffuse Large B Cell Lymphoma. The investment would be at a company value of $170 million.

Teva acquired 33% of CureTech in 2006, following the Phase I trial of CT-011, and it has the option to increase the stake depending on the results of CT-011's clinical trial. Teva also has an indirect stake in CureTech through Clal Biotechnology Industries Ltd. (TASE: CBI). CBI is CureTech's largest shareholder with a 37% stake, and Teva holds 15% of CBI.

Teva will carefully examine the results of CT-011 before making its final decision on the investment. Teva also has an option to buy the lymphoma treatment developer outright at a company value of $160 million.

In a statement yesterday, Teva said that the success of the Phase II trial encourages it to continue investing in Israeli science.

Teva's share price rose 0.24% on Nasdaq yesterday to $49.63, giving a market cap of $44.32 billion.

Published by Globes, Israel business news - - on May 18, 2011

© Copyright of Globes Publisher Itonut (1983) Ltd. 2011

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