The share of Mazor Robotics Ltd. (Nasdaq: MZOR; TASE:MZOR), which develops robot guidance systems for spinal and brain surgery, plummeted 7.8% in today's trading on the Tel Aviv Stock Exchange (TASE), after it was reported that Mazor Robotics CEO Ori Hadomi had been questioned by the Israel Securities Authority. Company computers were seized in the affair in May. Mazor Robotics reported the investigation in June, noting that senior executives in the company had been questioned, but that the suspicions had not been explained to the company, and no indictments had been submitted in the case. The company's market cap is now NIS 5.1 billion.
Hadomi has managed Mazor Robotics from the beginning, and is regarded as the spirit behind the company. If legal proceedings are instituted against him, it is very likely to damage the company' image and business.
The investigation follows a prosperous period at the company. Over the past 18 months since Mazor Robotics signed a strategic cooperation with Medtronic, the company's share price soared by almost 400%. The Medtronic agreements were signed in two stages; in the first stage, Medtronic began distributing Mazor Robotics' MazorX product, and several months ago, Medtronic signed an exclusive distribution agreement for the product. This agreement and the rise in the company's share price and revenue have made Mazor Robotics one of Israel's most successful medical devices companies ever.
The investigation reportedly involves insider trading relating to the first stage of the Mazor-Medtronic deal.
Published by Globes [online], Israel Business News - www.globes-online.com - on December 3, 2017
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