Teva exercises option to invest additional $11.9M in Andromeda Biotech

Jun 17 2010

Andromeda Biotech Ltd. announces that Teva Pharmaceutical Industries Ltd. decided to exercise its option to invest in Andromeda Biotech Ltd. ("Andromeda") at a company per-money valuation of 170 million US dollars.

Teva exclusively licensed Andromeda's lead product, DiaPep277^®, for the treatment of Type 1 Diabetes and received worldwide marketing rights for the product.

Pursuant to the exercise of the option, Teva and Clal Biotechnology Industries (CBI) will invest an additional total of 17.5 million US dollars in Andromeda (11.9 M US$ by Teva, 5.6 M US$ by CBI).

This investment will be utilized by Andromeda to perform DIA-AID 2, a confirmatory Phase III clinical study using DiaPep277^® for the treatment of newly diagnosed Type 1 Diabetes patients. 

DIA-AID 2 will include 450 patients 20-45 years of age. The study is double-blind, placebo-controlled with a treatment period of 24 months. The main goal of the study is to maintain the ability of the pancreas to secrete insulin in patients who receive treatment with DiaPep277^® compared to the placebo group.

Enrollment of patients has begun in the US as part of a global trial which will be conducted at 100 medical centers in North America, Europe, and Israel.

Shlomo Dagan, CEO of Andromeda, commented, "The current funding will enable Andromeda to continue with our clinical studies using DiaPep277^® as planned.  Our program places Andromeda in the lead to fulfill the unmet need for preserving pancreatic cell function in Type 1 Diabetes patients."