Clal Biotechnology Industries is pleased to announce that on December 17, 2020, Cadent Therapeutics Inc., which is held by the Company at a rate of approximately 13%, announced that it has entered into an agreement with Novartis under which Novartis will acquire all holdings in Cadent for a total of up to $ 770 million. Immediate in the amount of $ 210 million as well as future payments contingent on the existence of milestones set forth in the $ 560 million agreement.
The company’s share in the immediate payment is about $ 26 million. Part of the immediate payment to the Company (approximately $ 3 million) will be deposited in trust to secure indemnification obligations of Cadent shareholders under the acquisition agreement.
Cadent announced that it estimates that the acquisition agreement will be completed during the first quarter of 2021. It should be noted that the acquisition agreement includes standard provisions regarding, inter alia, conditions precedent for its completion, the interim period until its completion and indemnification clauses applicable to Cadent shareholders, including the Company.
The Company’s investment in Cadent is presented in its financial statements as of September 30, 2020 as a financial asset at fair value through profit or loss in the amount of NIS 24 million (approximately $ 7 million). In its financial statements for 2020, the company is considering a substantial profit.