(photo credit: Globes)
Industries Ltd. CEO Dilip Shanghvi will invest $10.5 million in Bio- Light
Israeli Life Sciences Investments Ltd. for an 11 percent stake in the company,
through his private company MJ Pharmaceuticals Ltd.
Pharmaceutical Industries Ltd. CEO Israel Makov recently took over Bio-Light and
serves as its chairman.
Sun Pharmaceuticals, which has a market cap of
$12 billion on the Bombay Stock Exchange, owns 66% of Taro Pharmaceutical
Industries Ltd. Shanghvi personally led the takeover of Taro.
will allot 30 million shares to MJ Pharmaceuticals at a company value of NIS 95
million, double the current market cap of NIS 42 million, even after taking the
diluting of the shares in the deal. Bio-Light’s share price rose 0.4% by
mid-afternoon on Sunday to NIS 0.288.
“This deal was designed so that its
terms will be similar to the terms at which the group of investors led by Makov
took over the company, weighting the options that this group has to increase its
stake, an option which has not yet been exercised,” Bio- Light CEO Suzana Nahum
Zilberberg told Globes.
Makov took over Bio-Light in order to create a
company that invests in clusters, i.e. non-competing, but collaborating,
companies in complementary fields. Bio- Light is developing two clusters: in
oncology through its takeover Micromedic Technologies Ltd., which already has a
range of cancer diagnostic activities; and the second in ophthalmology, based on
Bio-Light subsidiary IOptima Ltd.
We will use the initial investment to
finance our deal with Micromedic and to support IOptima, and to create
synergetic operations around them,” Nahum Zilberberg said. She added that the
company was moving forward systematically to create value for a secondary
“We already realized that we should raise capital gradually,
rather than seeking an immediate large investment.”
are interested in the company, including Israeli investment institutions, and if
someone makes a good offer, we probably won’t object. In the short term,
however, we’re not looking for additional investment to what we obtained today,”
Nahum Zilberberg said.
“Shanghvi says he wants to participate in the
creativity and enterprise.
He won’t hold an official position in the
company, but he can definitely help it and advise us. He is a very experienced
man in the pharmaceutical industry with a track record of success.”