Novartis Takes Additional 2.5% in Israel’s Gamida Cell

Gamida Cell develops cellular and immune therapies for the treatment of cancer and orphan genetic diseases.

Novartis (NVS +0.2%) agrees to invest another $15M in Gamida Cell, a Jerusalem-based developer of stem cell therapies.

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

Gamida intends to use the funds to initiate a Phase 3 clinical trial evaluating NiCord in blood cancers in mid-2016.

Novartis has a buyout option, which expires in 2016, under which the company can eventually invest a total of $600 million in Gamida. Gamida Cell’s current shareholders include: Novartis, Elbit Imaging, Clal Biotechnology Industries, Israel Healthcare Venture, Teva Pharmaceutical Industries, Denali Ventures and Auriga Ventures. Further, subject to achieving closure of an equity financing at end 2017 for funding late stage development of NiCord, additional investment of up to $10 million will be made by Novartis.

However, in June Novartis said it had decided not to buy the company despite the fact that all predetermined milestones had been met. Instead, the company indicated that it would “explore suitable alternatives” to stay close to Gamida.

The various other financial commitment by Novartis will surely be helpful to boost and improve Gamida Cell’s many scientific packages as well as NiCord’s progress.