JERUSALEM--(BUSINESS WIRE)--Gamida Cell, a leader in cellular and immune therapies for the treatment of cancer and orphan genetic diseases, announced today that Novartis will invest up to an additional $15 million in the Company in current and future equity.
The 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 (blood cancers). The Company plans to initiate a Phase III clinical trial with NiCord in mid-2016. NiCord is derived from a single cord blood unit, which is expanded and enriched with stem cells and immune modulatory cells, utilizing the Company's proprietary NAM technology.
"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," said Gamida Cell president and CEO, Yael Margolin, Ph.D.
Under the terms of the agreement, Novartis will immediately invest $5 million in Gamida Cell for an additional 2.5% equity interest in the Company. Additionally, 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 as part of the equity raise, subject to certain conditions set forth in the agreement. This financing follows the initial August 2014 agreement under which Novartis invested $35 million in return for a 15% equity interest in Gamida Cell. Novartis will not have rights or options to Gamida Cell products or technology under the terms of the agreement.
About Gamida Cell
Gamida Cell is a world leader in cellular and immune therapies for the treatment of cancer and orphan genetic diseases. The Company's pipeline of products are in development to treat a wide range of conditions including cancer, genetic hematological diseases such as sickle cell disease and thalassemia, genetic metabolic diseases, and refractory autoimmune diseases. Gamida Cell's current shareholders include: Novartis, Elbit Imaging, Clal Biotechnology Industries, Israel Healthcare Venture, Teva Pharmaceutical Industries, Denali Ventures and Auriga Ventures. For more information please visit www.gamida-cell.com.