July 16 (Bloomberg) -- Given Imaging Ltd., the Israeli maker of cameras that can be swallowed, rallied the most in nine months in New York as Japan’s earlier-than-estimated approval of its device to examine colons boosted the outlook for sales.
Shares of the Yokneam, Israel-based medical-device maker climbed 10 percent to $15.48 yesterday, the biggest jump since Oct. 18, 2012, to trade at the widest premium over the Tel Aviv shares in three weeks. The Bloomberg Israel-US Equity Index rose to the highest level in almost two years. Supermarket operator Alon Blue Square Israel Ltd. narrowed the discount to its stock in Tel Aviv after newspaper Calcalist said a shareholder was seeking a foreign partnership.
Given Imaging’s PillCam Colon was approved by Japan’s Pharmaceuticals & Medical Devices Agency for the examination of patients unwilling or unable to undergo colonoscopy, according to a statement yesterday. The decision wasn’t expected before November and will help boost sales next year, according to Jeremy Feffer, an analyst at Cantor Fitzgerald LP.
“They basically bought themselves two quarters,” Feffer, who has a buy rating on Given Imaging, said in a telephone interview from New York. “This will probably enable them to hit the ground running in 2014 pretty effectively, and you should get a nice, steady ramp in sales.”
PillCam Colon is estimated to be approved in the U.S. by the Food and Drug Administration between the end of the third quarter and the beginning of the fourth quarter, Chief Executive Officer Homi Shamir said by telephone yesterday.
Given, Blue Square
The Bloomberg Israel-US gauge rose 0.9 percent to 94.70, the highest price since Aug. 3, 2011. The benchmark TA-25 index snapped a two-day rally, dropping 0.1 percent to 1,220.44.
Given led gains on the index of the biggest Israeli companies traded in New York, amid trading volume more than three times the daily average over the past 90 days. The shares in Tel Aviv added 4.3 percent to 52.89 shekels, or $14.79.
Blue Square climbed 6.4 percent to $3.85, the biggest advance since April 2. A spokeswoman for Blue Square, who asked not to be identified because of company policy, declined to comment on the Calcalist report. The Tel Aviv-listed shares added 1.1 percent to 14.08 shekels, or $3.94.
Allot Communications Ltd., the Israeli maker of technology to track wireless traffic, soared 9.8 percent to $14.83 in New York, the highest price since Feb. 20. The shares in Tel Aviv jumped 4.1 percent to 50.78 shekels, or $14.20.
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