Institutional Investors Block Relocation Deal for Illex Medical Owner’s Daughter
Institutional investors have once again halted plans for the relocation of Tamar Galili, daughter of Illex Medical’s controlling shareholder Moshe Ben Shaul, in a move that took place less than a year after a similar attempt was rejected. At a recent shareholders meeting, the majority voted against a proposal for Tamar Galili and her partner Eli Cohen to manage the distribution of Illex Medical’s laboratory management software in the United States through an external company owned by them. The opposition stemmed from concerns that the terms offered were more favorable than what the company could secure from other distributors.
Previously, in September, a direct employment proposal for Galili and Cohen with annual salaries ranging from $379,000 to $554,000 each was rejected by 57% of minority shareholders. This time, the company proposed a revenue-sharing model where the external company would receive the margin between the license sale price and a minimum payment of $35 to Illex Medical, with additional profits if the sale price exceeded $200. Despite this adjustment, institutional investors, including hedge fund Alpha (12.9%) and Phoenix (5.7%), overwhelmingly opposed the deal, with 99.6% voting against it.
Illex Medical justified the engagement by citing Galili’s unique qualifications and experience, having served as CEO until October 2024 and currently sitting on the board. However, concerns about preferential treatment for the controlling family, which holds 62% of the company’s shares, prevailed. The company’s software segment remains minor, generating only 2.6 million shekels in 2025 out of total revenues of 931 million shekels, though it showed a 14% increase from 2024. Despite this, the software division is still operating at a loss.
Galili led Illex Medical from 2016 until October 2024, during which time the company reached a peak valuation of 1.9 billion shekels in early 2022. Since then, the stock has dropped 71% to a current market value of 557 million shekels, while the Tel Aviv 125 index rose 3%. Net profits fell from 192 million shekels in 2021 to 39 million shekels in 2024, and the stock has continued to decline following Galili’s departure.
