Sphera Global Healthcare Fund, headed by Mori Arkin, is investing in Intec Pharma Ltd. (TASE: INTP), which develops improved versions of existing drugs that have hundreds of millions of dollars in annual sales. The company was notified of a $5 million investment in it, including $2 million by Sphera, $2 million by Gabriel Capital Management Ltd., and $1 million by other investors. Under the investment agreement, Intec will allot to the investors shares and options.
The share price for the investment was set at NIS 1.1155, 3% less than the average closing price on the Tel Aviv Stock Exchange (TASE) in the 20 trading days before the announcement of the investment agreement.
Sphera Global Healthcare Fund is a hedge fund that specializes in the life sciences. It is run by Arkin, who founded Agis Pharmaceuticals, which was sold to Perrigo Company (NYSE:PRGO; TASE:PRGO), and Ori Hershkowitz.
Gabriel Capital Management is a new fund, which specializes in minority holdings in late-stage and companies operating in Israel and other countries. It was founded and is run by Gary Leibler, the founder and managing director of Shavit Capital Fund. Gabriel Capital's successful investments in the life sciences include Brainsway Ltd. (TASE:BRIN) and Kamada Ltd. (:Nadaq: KMDA); TASE: KMDA).
Intec Pharma chairman Zvi Joseph said, "Strengthening Intec Pharma's financial soundness, in order to move forward on its business plan on the possible commercialization of its products, or to pursue development of leading drugs to the critical stage of Phase III clinical trials in the US, will allow the company's management to take better decisions for shareholders."
Intec Pharma has reported success in two Phase II clinical trials of its accordion pill: a study of its Zaleplon accordion pill for the treatment of insomnia; and a study of its Carbidopa-Levodopa accordion pill for the treatment of Parkinson's disease.
Published by Globes [online], Israel business news - www.globes-online.com - on August 19, 2013
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