Can-Fite BioPharma Ltd. (TASE:CFBI) today announced the completion of the spin-off of its ophthalmology business to US stock market shell Denali Concrete Management Inc. (Bulletin Board: DCMG) at a value of $50 million, before money.
Under the deal, Denali raised $3.3 million, mostly from foreign investors, and Can-Fite invested $500,000 in Denali in cash and $2.4 million in Can-Fite shares. Can-Fite now owns 82% of Denali.
Can-Fite will license its CF101 drug for the treatment of dry-eye syndrome, glaucoma, and uveitis to Denali, which will pursue its development. Can-Fite is readying a Phase III clinical trial CF101 for dry-eye syndrome. Can-Fite will continue developing other drugs for the treatment of liver and autoimmune inflammatory diseases.
Can-Fite CEO Pnina Fishman said, "We are pleased with the completion of our strategic plan to spin off the company's ophthalmology operations, which create substantial value for the company's shareholders. Denali will become a public company specializing in ophthalmology on the basis of the late stage development and safety of our oral treatment, which target the large dry eye syndrome and glaucoma markets."
Can-Fite's share price rose 4% by midday to NIS 0.50, giving a market cap of NIS 120 million.
Published by Globes [online], Israel business news - www.globes-online.com - on November 22, 2011
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