{"id":20753,"date":"2014-08-19T12:21:00","date_gmt":"2014-08-19T16:21:00","guid":{"rendered":"http:\/\/sciencebusiness.technewslit.com\/?p=20753"},"modified":"2016-06-11T12:46:27","modified_gmt":"2016-06-11T16:46:27","slug":"novartis-acquires-stake-in-stem-cell-therapy-company","status":"publish","type":"post","link":"https:\/\/technewslit.com\/sciencebusiness\/?p=20753","title":{"rendered":"Novartis Acquires Stake in Stem Cell Therapy Company"},"content":{"rendered":"
\"Microscopic<\/a>
Microscopic view of umbilical cord (Josef Reischig, Wikimedia Commons)<\/figcaption><\/figure>\n

19 August 2014. Gamida Cell<\/a>, a developer of therapies from umbilical cord stem cells, says the global pharmaceutical company Novartis is buying a 15 percent interest in the company, with an option to acquire the entire company later. The deal brings Gamida Cell, located in Jerusalem, Israel, $35 million immediately, with a total potential return of $600 million if the full acquisition goes through.<\/p>\n

Gamida Cell designs therapies<\/a> based on stem cells derived from umbilical cord blood<\/a>, a potentially rich source of regenerative cells to treat blood-related diseases including anemia, leukemia, and lymphoma. A limitation of cord blood stem cells is the small number that can be generated at any one time. Gamida’s technology expands the number of available cells with epigenetic techniques — changes in gene expression outside of DNA — and cultures based on low molecular weight compounds.<\/p>\n

The company’s lead product is StemEx<\/a>, offered as an alternative when an exact bone marrow transplant cannot be found. Cord blood transplants do not require the same precise match as bone marrow. StemEx completed a late-stage clinical trial as a treatment for blood-related cancers leukemia and lymphoma.<\/p>\n

Gamida Cell’s more recent technology applies nicotinamide<\/a>, a derivative of vitamin B3<\/a> to expand the functionality of cultured cord blood stem cells. This technology is the basis for the company’s NiCord<\/a> product, currently in early and intermediate stage clinical trials as a treatment for blood related cancers, as well as sickle-cell anemia.<\/p>\n

Another nicotinamide-based product, CordBridge<\/a>, completed preclinical tests as a treatment for acute radiation syndrome. A related NK Cells<\/a> (for natural killer) product completed preclinical tests as an immunotherapy for solid tumor cancers.<\/p>\n

Under the deal, Novartis will acquire 15 percent of Gamida Cell’s stock for $35 million. Should Novartis exercise the option to buy the entire company, Novartis will pay Gamida Cell’s shareholders — mainly other biotechnology and pharmaceutical companies, as well as venture investors — $165 million. The full-acquisition option will be available for a limited, but undisclosed, period of time, and is contingent on the achievement of certain milestones in the development of Gamida’s NiCord product in 2015.<\/p>\n

If the full acquisition goes through, Gamida Cell’s shareholders will also be eligible for another $435 million in payments, based on reaching certain development and regulatory milestones, as well as royalties on sales.<\/p>\n

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