Novartis Signs Investment And Option Agreement With Gamida Cell
Gamida Cell, a company focused on stem cell expansion technologies and therapeutics, announced that it has entered into an investment and option agreement with pharmaceutical giant Novartis.
Under the terms of the agreement, Novartis will invest $35 million in Gamida Cell and will gain a 15 percent equity as well as an option to completely acquire the stem cell company. The option is eligible for a specific period of time after certain milestones are met in connection to the development of Gamida Cell’s NiCord. These milestones are expected to be completed during 2015.
NiCord is an expanded cell graft taken from an entire unit of umbilical cord blood and enriched with stem cells using the company’s proprietary NAM technology. NiCord is being investigated as a potential treatment for sickle cell disease (SCD), a group of disorders in which the patient’s red blood cells become misshapen and resemble a sickle. Gamida Cell is currently conducting a Phase I/II study of NiCord in other hematological malignancies including leukemia and lymphoma.
Should Novartis choose to exercise the option, Gamida Cell shareholders will be entitled to receive $165 million in cash payment. Novartis will also make potential future payments which could add up to $435 million based on specific development and regulatory milestones as well as sales of Gamida Cell’s products.
Dr. Yael Margolin, Gamida Cell president and CEO, said that the agreement underscores the potential of the company’s technology. “Novartis is a leading pharmaceutical company with a declared commitment to further expand and develop its pipeline of cell therapy products. This, combined with the breadth of its resources and experience, positions Novartis perfectly for an alliance with Gamida Cell.”
Mr. Ruben Krupik, Gamida Cell board chairman and Clal Biotechnology Industries' CEO, said that the agreement with Novartis can help advance Gamida Cell in its progress to market competitive products in its field.
This is not the first time Novartis has taken a leap into the cell therapy space. Last year, Novartis entered into an exclusive global licensing research partnership with Regenerex to expand its novel cell therapy therapeutics portfolio. The partnership centered on Regenerex’s novel allogeneic hematopoietic stem cell based therapy platform FCRx which could have potential applications in inherited metabolic diseases, such as sickle cell disease.