Clal Biotechnology Industries Ltd. (TASE: CBI) share rose 9.1% in afternoon trading after reporting to the Tel Aviv Stock Exchange that Teva Pharmaceutical Industries Ltd. (Nasdaq:TEVA; TASE:TEVA) had completed its option to make an additional investment in CBI portfolio companyAndromeda Biotechnology Ltd..
Last February, CBI reported that Teva would invest $10.5 million in Andromeda, at a company value of $100 million, for a 10.5% total holding. Prior to the investment CBI held 95% of Andromeda. Teva exercised its option and completed its investment of the full $10.5 million, and CBI's holding drops to 90%. Teva began its investments in Andromeda in 2008.
Andromeda is developing Diapep277 for the treatment of type 1 diabetes (juvenile-onset diabetes). The drug is undergoing Phase III clinical trial in Europe.Diapep277 was developed by German firm DeveloGen AG (XETRA: DE915). CBI bought DiaPep277 from DeveloGen (Israel) and founded Andromeda to develop it.
The investment by Teva follows Andomeda's request to the US Federal Drug Administration (FDA) to conduct a second Phase III clinical trial on DiaPep 277 in order to receive approval for marketing in the US.
Published by Globes [online], Israel business news - www.globes-online.com - on June 21, 2009
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