Novartis invests further $15m into Gamida Cell
pharmafile | October 13, 2015 | News story | Research and Development, Sales and Marketing | Gamida Cell, Novartis, pharma mergers and acquisitions
Novartis is to invest an extra $15 million into Israeli stem cell therapy developer Gamida Cell, adding an additional 2.5% to its existing 15% shareholding.
The Swiss company paid $35 million for the initial 15% stake last year and also has a $600 buyout option that it may exercise until 2016, although it has opted not to on two occasions thus far.
The new investment- an initial $5 million, plus potential $10 million by 2017 in milestone payments- represents an additional commitment on Novartis’s part to gaining a strong position in the growing Israeli biotech market.
Gamida develops treatments for orphan haematological diseases and malignancies using stem cells and NK cells. Its lead product is the experimental blood cancer treatment NiCord, which is currently in Phase I/II trials.
The new cash injection from Novartis will be used to support Gamida’s clinical programs, including NiCord’s development, with the Israeli company planning Phase III trials by mid-2016.
Gamida Cell president and CEO, Yael Margolin, comments: “We are very pleased to receive continued support from Novartis. This support is testament to the potential of Gamida Cell’s immune therapy platform and its potential to improve outcomes for patients with diseases like leukemia and lymphoma who need a bone marrow transplant but who do not have a matched related donor.”
Novartis will not acquire the rights or options to Gamida Cell products or technologies as part of the agreement.
Joel Levy
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