Clal Biotechnology Industries Ltd. (TASE: CBI) yesterday reported that Cadent Therapeutics, in which it owns a 16% stake, had completed a $40 million financing round. Cadent, which develops drugs for psychiatric and neurological diseases, completed a Phase I (safety) trial of its CAD-1883 drug for treatment of spinocerebellar ataxias (SCA), a movement disorder, and essential tremor (tremor not caused by Parkinson's Disease). Now that the trial has showed that the drug is safe for these diseases, the company will soon begin a Phase II (effectiveness) trial for two forms of the drug.
Clal Biotechnology, whose share price did not respond to the news yesterday, has a NIS 507 million market cap.
Cadent is a US company added to Clal Biotechnology's portfolio when it merged into itself Access Medical Ventures, a fund controlled by billionaire Len Blavatnik (also the controlling shareholder in Clal Biotechnology). Other companies in which Clal Biotechnologies also acquired a stake in the same way include Neon Therapeutics (Nasadaq: NTGN) and cancer immunotherapy company Vedentra. These three companies constitute Clal Biotechnology's activity in the US.
Cadent develops drugs, based on a new brain mechanism, for psychiatric and neurological diseases for which no drugs currently exist. The company has a licensing agreement with international pharmaceutical company Novartis for development of a drug for treatment of depression under which Novartis finances development of the drug. Payments to Cadent, which are based on milestones and sales, can reach $386 million, not counting sales royalties.
Cadent also develops a drug for treatment of cognitive decline in schizophrenia patients.
The money raised by Cadent will enable the company to carry out three Phase II trials; a fourth trial planned by Cadent will be fully funded by Novartis.
Published by Globes, Israel business news - en.globes.co.il - on November 19, 2018
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