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Exalenz Bioscience on the lookout for a buyer: Globes
Posted on Thursday, 17 October 2019 15:20
Israel-headquartered biotechnology player Exalenz Bioscience is keeping its eyes peeled for a prospective acquiror, according to Globes.
Citing an announcement from the company, the financial daily said it has appointed an investment bank to advise on the process, but stopped short of giving any information on when a deal would be likely to take place.
Globes quoted chief executive Raffi Werner as saying that the board believes the firm’s value in the capital markets is not an accurate reflection of its actual worth and business potential.
He added that an acquisition would be likely to generate value for shareholders and increase the company’s latent value.
Globes has highlighted the failed trial of Exalenz’s fatty liver diagnosis product and related postponement of a planned secondary listing of stock on Nasdaq as factors behind the decision to sell.
According to the financial daily, the firm’s shareholders hope that proceeds of USD 60.00 million can be generated from a divestment of the business.
Globes added that Exalenz’s board has already held initial talks with a number of potential suitors and the investment bank which has been hired will now help executives consider strategic alternatives.
Tel Aviv-listed Exalenz provides advanced liver health and gastroenterology-related diagnosis tools for gastroenterologists, general practice physicians and hepatologists.
The company generated revenue of USD 7.18 million in the first six months of 2019, up from USD 6.65 million over the corresponding timeframe in the preceding year.
Gross profit for the period stood at USD 3.55 million, up from USD 2.30 million in H1 2018.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 638 deals targeting surgical and medical instrument manufacturers announced worldwide since the beginning of 2019.
The most valuable of these involved 3M agreeing to pay USD 6.73 billion for US surgical healing and patient mobility equipment maker Acelity back in May.
© Zephus Ltd