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Novartis to invest USD 15 million for stem cell therapies

Novartis to invest USD 15 million for stem cell therapies

Gamida cell, an Israel based stem cell therapy company will see an additional investment of 15 million dollars from its early investor, the Swiss drug maker Novartis. Novartis is reported to buy another 2.5 percent in Israel’s Gamida Cell

Novartis had earlier invested 35 million dollars in the company, in a deal recognised to mark it’s 15 percent holding stake in the company. The acquisition is now has the potential to reach a value of 600 million dollars, if Novartis exercises a complete buy out option in 2016.

The $15 million investment will be used to advance Gamida Cell’s clinical programs, including the development of NiCord, an experimental treatment for patients with high risk hematological malignancies, or blood cancers such as leukemia and lymphoma and sickle cell disease.

Gamida plans to initiate a Phase III clinical trial with NiCord in mid-2016.

As part of the latest deal, Novartis will immediately invest $5 million in Gamida Cell for an additional 2.5 percent stake. Also, subject to the close of an equity financing by the end of 2017 to fund the late stage development of NiCord, Novartis will invest up to another $10 million.

Novartis will not have rights or options to Gamida Cell products or technology under the terms of the agreement.

Other Gamida shareholders include Clal Biotechnology Industries, Elbit Imaging, Israel Healthcare Venture, Teva Pharmaceutical Industries, Denali Ventures and Auriga Ventures.

 

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    Source: Reuters

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