Shares on the Tel Aviv Stock Exchange may rise today, after Nasdaq gained 2.5% on Tuesday. But heavily weighted Teva (Nasdaq: TEVA) may sink, on the back of a 2% negative arbitrage gap with its Nasdaq-listed share.
Yesterday, Teva disappointed investors when it announced that phase III trials for etilevodopa, a treatment for Parkinson's Disease, did not demonstrate statistically significant superiority over standard levodopa.
The drug wasn't quicker than standard levodopa in taking effect , as had been hoped. A market source said estimated annual sales for etilevodopa stood at $100 -$150 million annually.
More bad news for Teva came from Slovenia-based drugmaker Lek Pharmaceuticals. Lek told Reuters yesterday that it had started selling its generic version of GlaxoSmithKline’s Augmentin antibiotic in the US. Teva has been offering the blockbuster drug in US markets since the end of October.
In a separate development, Teva announced that its US subsidiary would collaborate with Illinois-based BioSante Pharmaceuticals (OTC Bulletin Board: BISP) on the development of a hormone therapy product for the US market.
Under the agreement, BioSante received an upfront payment of $1.5 million from Teva. In addition, Teva will pay BioSante development and sales-related milestone payments plus royalties on sales of the product.
Koor may attract interest. “Globes” reported on Monday that the Greek ministry of defense will procure electronic warfare (EW) systems for airplanes and helicopters from Elisra Electronic Systems, which is owned 70% by Koor.
A control struggle for Sadot R&D may drive interest in that share. “Globes” reported that Avi Wertheim purchased 7.5% of Sadot R&D on Monday, at NIS 2.4 per share. The price is identical to the price of the offer to purchase by the Lewis Trust Group International (LGTI), controlled by the Lewis family. Wertheim now has stake of over 13% in Sadot R&D, after accumulating additional shares on the stock exchange in recent months.
Sadot R&D was the third most active stock on the TASE yesterday.
On Monday, the Tel Aviv Stock Exchange was flat. The Tel Aviv 25 index fell 0.17% to 330.43 points; the Tel Aviv 100 index fell 0.01% to 332.19 points; and the Teltech index rose 0.58% to 168.25 points.
Arbitrage gaps
| Stock | % Change* |
| Audiocodes | 1.8 |
| Blue Square Israel | 0.5 |
| Delta Galil | -0.1 |
| Elbit Systems | 1.5 |
| Elron | -0.4 |
| Formula | 0.8 |
| Koor | 0.9 |
| Magic | 8.6 |
| Matav | -8.7 |
| Nice | 2.9 |
| Partner | -1.8 |
| Teva | -1.9 |
| Tower | 3.0 |
*%change required in Tel Aviv to meet New York closing price
Published by Globes [online] - www.globes.co.il - on 7 January, 2003