Date: 2015-10-12
Type of information: Private placement
Company: Gamida Cell (Israel)
Investors: Novartis (Switzerland)
Amount: $15 million
Funding type: private placement
Planned used: 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. 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.
Others: * On October 12, 2015, Gamida Cell announced that Novartis will invest up to an additional $15 million in the company in current and future equity. 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. * On August 19, 2014, Gamida Cell announced that it has signed an investment and option agreement with Novartis. According to the agreement, Novartis will invest $35 million in Gamida Cell and in return will receive 15% equity and an option to fully acquire Gamida Cell. The option is exercisable for a limited period of time following achievement of certain milestones connected to the development of NiCord®, anticipated to be met during 2015. Completion of the transaction is subject to customary closing conditions. Upon exercising the Option, Novartis would pay the other shareholders in Gamida Cell (the Sellers) cash payments of approximately $165 million, in accordance with the terms of the Agreement. In addition, the Sellers will be entitled to potential future payments which can reach a total of $435 million, depending on certain development and regulatory milestones and on sales of Gamida Cell's products.
Therapeutic area:
