Novolog: What Really Remains in Health Services After the Novohelet Sale
The Novohelet disposal can look like a broad retreat from Health Services, but that is not what the filing describes. After the carve-out, what leaves is mainly the respiratory home-care perimeter, while psychiatry, hospice, medical equipment, and the rest of the health platforms remain inside the group.
What This Follow-up Is Isolating
The main article argued that Health Services improved, but logistics still controls the cash story. This follow-up isolates one narrower question: what actually remains inside Health Services after the Novohelet transaction. A first read of the headline can sound like a broad exit from home-based healthcare.
That is the wrong read. Novolog is selling 100% of Novohelet’s shares, but before closing it is supposed to complete a reorganization that moves the psychiatry, hospice, and medical-equipment activities into another company owned by the group. Those activities are meant to stay inside Novolog. The transaction changes the mix of Health Services, but it does not hollow the segment out.
That distinction matters because the company explicitly says the 2025 revenue increase in Health Services was driven mainly by stronger demand for psychiatric home hospitalization. If the main improvement driver of 2025 is staying inside the group, then anyone reading the transaction as if “the health improvement is being sold away” is likely misreading both 2025 and the post-deal setup.
What Is Actually Being Sold
| Layer | What the filing says | Economic meaning |
|---|---|---|
| Deal headline | Novolog signed an agreement to sell 100% of Novohelet’s shares | At the legal-wrapper level, this is the sale of a whole subsidiary |
| Pre-closing reorganization | Psychiatry, hospice, and medical-equipment activities are supposed to move into another Novolog-owned entity | Three meaningful activities stay inside the group and do not go to the buyer |
| Effective sold perimeter | After the reorganization, the sale includes only the services for ventilated patients and breathing difficulties | This is a narrower respiratory perimeter, not the whole Health Services story |
| Additional operating detail | Until the end of 2025, the segment operated Home Care for ventilated patients and the marketing and rental of equipment for diagnosing and treating sleep difficulties, and in January 2026 the company signed the agreement to sell that activity | The market should read this as an exit from a respiratory home-care line, not from all home-based healthcare |
The key point is that the Novohelet name is broader than the perimeter that ultimately leaves. The company explicitly says the carved-out assets remain under its ownership. So even if Novohelet as a legal entity is sold, not everything that a reader might intuitively bundle under “Novohelet” is actually leaving the group.
What the 2025 Numbers Already Say About What Stays
Health Services finished 2025 with ILS 217.9 million of revenue versus ILS 206.7 million in 2024, and with segment EBITDA of ILS 22.8 million versus ILS 19.6 million a year earlier. Operating profit moved from a loss of ILS 3.6 million to a profit of ILS 5.2 million. That is not the profile of a segment being sold because it failed across the board.
The more important detail is the company’s own explanation. It attributes the revenue increase mainly to higher demand for psychiatric home hospitalization. Since the same disclosure makes clear that the psychiatry activity is carved out of the transaction and remains inside the group, the analytical takeaway is straightforward. The main improvement engine flagged by management is not being sold away.
The most useful number here is not only reported operating profit. The operating-profit improvement also benefited from an easier comparison against 2024, when the company recorded ILS 7.5 million of impairment charges, versus a ILS 4.4 million loss on the Novohelet sale in 2025. So anyone trying to read the underlying change more cleanly should focus first on revenue and segment EBITDA, where the direction is still positive.
What the Held-for-Sale Disposal Group Tells You, and What It Doesn’t
The financial statements already show a held-for-sale disposal group with ILS 37.6 million of assets and ILS 9.4 million of liabilities, or ILS 28.2 million of net assets. Inside that disposal group are ILS 15.7 million of receivables, ILS 4.9 million of cash, ILS 4.6 million of inventory, ILS 4.0 million of goodwill, and ILS 2.6 million of net property and equipment. So the company is not selling an empty legal shell. It is selling an operating perimeter with real working capital and operating assets.
But this is exactly where readers need to stop short of over-interpreting the filing. Those figures do not tell investors what the post-closing earnings base of Health Services will be. The report does not provide a standalone revenue, EBITDA, or profit breakdown for the respiratory activity being sold after the carve-out. That means the updated ILS 14.5 million consideration and the ILS 4.4 million accounting loss are not a clean shortcut to the economics of what remains.
The change in the payment structure does say something else. In January, the deal was signed at up to ILS 15 million, with half paid at closing and the rest spread over three later installments. In March, the mechanism was changed to ILS 14.5 million paid in one amount at closing, subject to working-capital adjustments. That improves cash certainty if the transaction closes, but it does not solve the disclosure gap around retained profitability.
What Remains Inside Health Services
This is where the segment note gives the broader picture. Health Services includes Novohelet, Salos, Target Care, Medicare Briut, AML, Ein Tal, and Pronto. Beyond that, the activity description of the segment includes psychiatric home hospitalization, home hospice, private medicine and personal medical management, an ophthalmic surgical center, medical-lab services, and other healthcare services.
The implication is that after closing, Health Services is not supposed to become a thin wrapper around a few residual activities. Quite the opposite. Based on what the company chose to highlight, the group should still hold a meaningful part of its service engines, including the psychiatry activity that drove the 2025 improvement, together with platforms such as Ein Tal, the lab activity, personalized medicine, and the other subsidiaries in the segment.
That also matches the strategic explanation given in the immediate report. Novolog presents the Novohelet sale as part of a sharper focus around two arenas, product suppliers on one side and service providers on the other. The right way to read the deal is therefore not “Novolog is leaving health,” but “Novolog is moving one specific respiratory activity out in order to sharpen the mix of what stays.”
The drawback is that 2026 will bring a newly mixed Health Services segment without a clean pro forma in the 2025 report showing what the segment would have looked like if the deal were already closed. So even if the strategic direction is clearer, the next year-over-year comparison will be inherently messier.
Conclusion
Current thesis: the Novohelet deal sharpens Health Services much more than it dismantles it. What is being sold is a relatively defined respiratory business, while psychiatry, hospice, medical equipment, and a long list of other health platforms remain inside Novolog.
In terms of how to read the filing, that is a critical distinction. If the reader assumes that the 2025 health improvement is being sold together with Novohelet, they miss that the company itself tied the improvement mainly to psychiatric home hospitalization, an activity that is supposed to stay. If the reader assumes the deal price tells the full story about the value or profitability of the remaining segment, they miss that the report does not provide enough disclosure to make that leap.
The next checkpoints are fairly clear: actual closing of the transaction, cleaner disclosure on the structure of the segment after the reorganization, and proof that growth in psychiatric home hospitalization and the rest of Health Services holds even without the respiratory perimeter. Until those arrive, the best way to read the transaction is as mix sharpening, not as a final verdict on the quality of the remaining health business.
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