Generic drug producer Teva Pharmaceuticals (TEVA) will sell genetic testing services venture Oncotest to an Israeli company called Rhenium, reports sources. It is believed that the payment will be in the “tens of millions of dollars.”
Teva is one of the largest generic drug producers in the world. Over time, they have also diversified acquiring branded assets in the pursuit to become a fully integrated global biopharmaceutical drug company.
Founded in 1968 by Dr. Lior Soussan-Gutman, the company markets laboratory tests in Israel from all over the world in an effort to map malignant tumors and adjust treatments for clinical trials specifically to the patient’s tumor. 100% owned by Teva, they are selling their entire ownership to Rhenium.
Who is Rhenium?
Rhenium was founded and managed by Dror Israeli, a company that specializes in marketing equipment for laboratory tests to private laboratories, health funds, and hospitals. Founded in 1991, the company operates in Modi’in. Shamrock Israel Growth Fund, the Disney family’s investment fund in Israel, invested tens of millions in Rhenium for 30% of the company.
Oncotest has been a pioneer in genetic testing for cancer in Israel. As the human genome project grew and mapping exercises intensified, limitation of mapping became apparent. Patient treatment options were impacted and the need for new genomic testing of the tumor itself became apparent. With advancing technology, human genome testing became less expensive and the field took off in Israel.