IDB Holding Corp. Ltd. (TASE:IDBH) chairman Nochi Dankner is bringing in a leading player to Given Imaging Ltd. (Nasdaq: GIVN; TASE: GIVN). Today the company announced changes to its board. Current chairman Doron Birger will step down and will probably be replaced by former Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) CEO Israel Makov. Birger will remain a director.
Given Imaging said that it will consider the appointment of Makov, who was CEO of Teva for 11 years, as director and its next chairman. In fact, the appointment depends only on approval by the company board, which is unlikely to oppose it.
Given Imaging develops, produces and markets a wireless imaging system using disposable video capsules for diagnostic purposes.
Given Imaging also announced that Eyal Lifschitz would be stepping down as director and that Elron Electronic Industries Ltd. (Nasdaq: ELRN; TASE: ELRN) chairman Arie Mientkavitch would be joining the board.
Makov left Teva in October 2006 following "certain disagreements with the company board."
Nochi Dankner congratulated Makov on his readiness to join Given Imaging and to lead it together with CEO and president Homi Shamir, and the company board. "Israel Makov is one of the best managers in Israel and he brings extensive managerial experience in leading a global giant to phenomenal success. I am delighted that he has agreed to serve as director and company chairman," he said.
Given Imaging has a market cap of $670 million, and it has gained 21% since the beginning of the year, thanks to positive developments in Japan that the company announced in recent weeks. The first of these was a collaboration with Fuji subsidiary Fujinon, and the second and more significant was the winning of approval from the Japanese Health Ministry to market the company's Pillcam Small Bowel capsule in Japan.
IBI Investment House Ltd. welcomed the latest news from Given Imaging, and analyst Noa Weisberg raised her rating for the company to "Buy" from "Neutral" and her target price to $30 from $22, 28% above the company's closing price on Nasdaq on Friday. She wrote that 2006 was a year of infrastructure building and that the company was now reaping the fruits of this investment. She expects that the company will receive US Food and Drug Administration (FDA) approval for its Colon SB capsule during the second half of 2007, and notes that it is a product with a massive market. As regards the approval in Japan, Weisberg feels that this is a significant growth engine for the company.
Given Imaging will publish its financial report for the first quarter on May 7. Weisberg expects the company to post a net profit of $1.9 million, or $0.06 per share, on $25.8 million in revenue.
Published by Globes [online], Israel business news - www.globes.co.il - on April 30, 2007
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