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Given Imaging Premium Widens as Ceragon Slumps: Israel Overnight
Given Imaging Ltd. (GIVN), the Israeli maker of pill-sized cameras for diagnosing digestive ailments, surged in New York to trade at the biggest premium to Tel Aviv shares in three weeks after the company submitted trial data for regulatory approval in Japan.
The developer rose 5.4 percent to $14.07 in New York yesterday to trade at a 52-cent premium to its Tel Aviv shares. The Yokneam, Israel-based company led gains in the Bloomberg Israel-US Equity Index (ISRA25BN) of the most traded Israeli companies in the U.S., with the gauge climbing to the highest since May 11. Given climbed 3.8 percent at 9:55 a.m. in Tel Aviv. Ceragon Networks Ltd. (CRNT), the Israeli maker of wireless networking systems, tumbled to the lowest since April 2009 yesterday.
Given said yesterday that it filed the results of a study to Japanese regulators that showed success in 94 percent of the cases for certain polyps. Shares had dropped to a three-year low of $12.69 on Aug. 20 after the company said it won’t submit its pill for general screening approval to the U.S. Food and Drug Administration following the completion of a clinical trial.
“The stock had been completely oversold previously and any good news is great news,” Bryan Brokmeier, an analyst at Maxim Group LLC, said by phone from New York. “Japan is a huge market and any such news is going to result in the shares correcting on the positive side.”
The PillCam Colon capsule contributed $1.8 million to Given’s total sales of $178 million in 2011. It was cleared for marketing by the European Union in 2006 and in Israel two years later, according to the company’s website.
The submission to the Japanese Pharmaceuticals and Medical Devices Agency includes the results of the pivotal clinical trial of the PillCam Colon 2, designed to look at the colon for pathologies including colorectal cancer, Given said in the statement yesterday.
Colorectal cancer resulted in 8 percent of the 7.6 million cancer deaths worldwide in 2008, according to the fact sheet maintained by the World Health Organization. The group projects cancer deaths increasing to more than 13 million by 2030.
Given, which trades at 20.2 times estimated earnings in the U.S., has lost 19 percent this year. The shares in Tel Aviv rose to 54.89 shekels today, or the equivalent of $13.99.
Israel, whose population of 7.8 million is similar in size to Switzerland’s, has about 60 companies traded on the Nasdaq stock market, the most of any country outside the U.S. after China. The nation is also home to more startup companies per capita than the U.S.
Ceragon slid for a sixth day, losing 5.5 percent to $5.11 in New York yesterday. The shares in Tel Aviv fell 0.7 percent today to 20.36 shekels, or the equivalent of $5.19.
The U.S.-listed stock has lost 26 percent of its value since it announced the filing of a shelf registration on Aug. 15, which may lead to sales of as much as $150 million of securities.
Ceragon’s sales will increase at the slowest pace in four years in 2013, according to the mean estimate of nine analysts surveyed by Bloomberg. Alcatel-Lucent SA and ZTE Corp., who also sell their products to telecom operators, reported slower growth in second-quarter earnings on reduced demand from carriers.
“The dilution that could come with the shelf registration is responsible for the selloff,” Joseph Wolf, an analyst at Barclays Plc, said by phone from Tel Aviv yesterday. “Their growth rate has been cut because of economic and carrier spending concerns in their end market. The expectation for the sector remains under pressure.”
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