Clal Biotechnology Industries (TASE: CBI) is reinvesting in a new investment after several years of focusing on its existing portfolio. This time, the company turns to the current hot stock market and forms SPAC (special purpose acquisition company). Clal Biotech also announced today that it will set aside Anatomy, its funds for medical technology.
In addition, the company declared a dividend of NIS 36 million after exiting the portfolio of Cadent Therapeutics and Neon in 2020. In December, Cadent Therapeutics was sold to Novartis for an immediate payment of $ 210 million, with the possibility of further payments of up to $ 770 million based on success. The American company Neon Therapeutics, in which Clal Biotechnology had a 4% stake, was merged with the German company BioNTech, which became Pfizer’s partner in the development of the vaccine against Covid-19. Clal BNiotech sold its shares for $ 15 million, after investing only a few million dollars.
On top of that, Clal Biotech announced a share buyback program in the amount of NIS 9.3 million.
Clal Biotech was traded this morning at a market capitalization of NIS 297 million, after a 178% share price increase last year.
SPAC’s plan is to raise $ 100 million to invest in a company worth between $ 500 and $ 1 billion. The company is likely to deal in pharmaceuticals or, less likely, a digital healthcare company associated with pharmaceuticals.
Clal Biotech CEO Ofer Gonen said: “We are setting up a special purpose company together with major life sciences partners whose names cannot yet be revealed. The target company will be in Israel. We estimate there are a dozen Israeli companies that could be suitable for a move like this and represent a unique opportunity for us, unlike players who have established SPAC abroad and do not know those companies well or are not looking for an investment here. “
The second step announced by Clal Biotech is the sale of Anatomy funds to the Almeda Ventures partnership in exchange for shares. Almeda Ventures is a digital healthcare and medical device investment partnership that floated on the Tel Aviv Stock Exchange in October last year and has a market capitalization of NIS 41 million. The partnership is managed by Tzahi Sultan, Ph.D. Irit Yaniv et al. Amir Blatt.
The Anatomy portfolio will be shifted to Almeda Ventures, with the exception of Sight Diagnostics, a rapid medical test programmer who raised $ 71 million last August. Partners in Anatomy funds will receive units for participation in Almeda Ventures worth NIS 17-20 million. Clal Biotech owns 50% of Anatomy, Migdal Insurance and Financial Holding Ltd. (LEVEL: MGDL) owns 30% i Harel Insurance for Investments and Financial Services Ltd. (LEVEL: HAUL) owns 20%.
Executive Director of Almeda Ventures dr. Irit Yaniv said today that she oversaw Clal Biotech’s portfolio companies for a year before a decision was made. The deal brings Almedi new companies without initial financial investment, and also adds Clal Biotech and two important financial institutions as investors in the partnership, along with The Phoenix Holdings Ltd. (LEVEL: PHOE1;PHOE5), More investment houses and Excellence Investments Ltd. (LEVEL: EXCEPT), which have already been invested in it.
Posted by Globes, business news in Israel – en.globes.co.il – March 18, 2021
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