Novartis pours another $15M into Israeli stem cell company
- Gamida Cell is an Israeli company that develops stem cell therapies.
- Novartis has purchased an additional 2.5% stake in the firm and now owns 17.5% of Gamida Cell.
- Novartis has a buyout option, which expires in 2016, under which the company can eventually invest a total of $600 million in Gamida. So far, the toal investment is $50 million.
Gamida's primary focusis NiCord, a treatment-in-development for paitents with hematologic diseases, including leukemia, lymphoma, and sickle-cell disease. NiCord is in mid-stage development and, according to Gamida's current timeline, it will be move into phase 3 by mid-2016. The goal of the Novartis investment is to advance the NiCord clinical development program.
Although Novartis will not have rights or options to Gamida Cell products under the terms of the agreement, it could end up owning a sizeable portion of the company based on the terms of the agreement.
Subsequent investments are subject to the close of an equity financing deal by the end of 2017.