JERUSALEM, April 28 (Reuters) - A Tel Aviv court has ruled that Teva Pharmaceutical Industries violated the terms of a drug-developing licence with Israel's Proneuron Biotechnologies and has ordered it to return technology and intellectual property.

Proneuron filed the lawsuit against Teva in 2007 over a clinical trial the company conducted on patients with amyotrophic lateral sclerosis (ALS), a progressive neurodegenerative disease that affects nerve cells in the brain.

The suit said Teva had carried out a clinical trial while ignoring contractual obligations to Proneuron and pre-trial findings that indicated the trial lacked a scientific basis, was doomed to failure and had the potential to reduce life expectancy.

In its ruling, issued late on Monday, the court said Teva must pay Proneuron 500,000 shekels ($128,287) and return 14 drugs indications it had received as part of the deal in the areas of Alzheimer's and other central neurological diseases.

"Teva made a mistaken professional decision and embarked on an efficacy trial that was not planned well since it should have given greater weight to pre-clinical findings and to exploring their significance before starting a clinical trial," Tel Aviv District Court Judge Avi Zamir wrote in his ruling.

Teva, the world's largest generic drug maker, said it would explore all legal avenues, including an appeal, over the verdict.

"The court specifically ruled that there was full scientific justification to conduct a clinical trial in ALS patients, and that Teva acted in good faith while considering legitimate considerations," it said in a statement, adding that patients participating in the clinical trial had not been in any danger.

Shares of Tamir Fishman Venture Capital, a key investor in Proneuron, surged 112 percent on Wednesday.

"Proneuron has very valuable intellectual property," Tamir Fishman said in response to the ruling.

A source close to Proneuron told Reuters it would likely sue Teva for damages for not being able to develop any drugs for a decade.

The source said Proneuron would now start to develop drugs that have attracted interest from other global players. Among the candidates is Mylan, the source added.

Last week Teva offered to buy Mylan for $40 billion in cash and stock. Mylan has so far rejected Teva's offer.

($1 = 3.8975 shekels) (Reporting by Steven Scheer; Editing by Gareth Jones)