The deal for the sale of Gamida Cell to Novartis is back on. Instead of a huge exit in hundreds of millions of dollars, this time the deal is in multiple stages, starting with an injection of several dozen millions of dollars into the company.
Gamida Cell, developer of a stem-cell treatment for blood cancer, announced today 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.
Gamida Cell president and CEO Dr. Yael Margolin said:
“The investment and option agreement announced today demonstrates Novartis’ belief in the potential of Gamida Cell’s platform technology, product pipeline and team. Novartis is a leading pharmaceutical company with a declared commitment to further expand and develop its pipeline of cell therapy products.