Israel-Medical-Healthcare

[genisi]

Omrix shares gain ground on buyout speculation

http://www.forbes.com/feeds/ap/2008/11/10/ap5672929.html

Associated Press 11.10.08, 1:11 PM ET

Shares of Omrix Biopharmaceuticals Inc. jumped Monday as speculation over a possible buyout again surrounded the company, following a report in an Israel-based business publication.

The stock rose $1.15, or 6.4 percent, to $19.12 in afternoon trading. Shares have traded between $8.99 and $38.20 over the past 52 weeks.

On Sunday, the business newspaper Calcalist reported that Omrix received an offer from privately held, Switzerland-based Octapharma for less than $30 per share. In August, the Israel publication Globes reported that a U.S. hedge fund offered $25 per share and that Omrix had rebuffed an offer from distribution partner Johnson & Johnson.

Omrix management could not be reached for comment and has previously not commented on buyout speculation.

Omrix is based in New York but has research and development and manufacturing operations in Israel. It sells biosurgery products, which are used to control bleeding during surgical procedures, and immunotherapy treatments.

"This is the third speculative story to reach Israeli press in recent months, and our sense once again is that the specific facts here are not so concrete," said Oppenheimer & Co. analyst Amit Hazan. "However, the general hypothesis of a take-out is one we consider to be very realistic for this equity at this time, and in our view, one of several reasons to own the name."

He reaffirmed a "Outperform" rating in a note to investors.