Teva invests further in diabetes treatment firm Andromeda

15 June 2010

Israeli generic drugs giant Teva Pharmaceutical Industries Ltd. has exercised its option to invest an additional $11.9 million in diabetes drug developer Andromeda Biotech at a company value of $170 million, report the local news service Globes Online.

As part of the exercise of the option, Andromeda's parent company, Clal Biotechnology Industries will also invest $5.6 million, bringing the total investment in the company to $17.5 million. The investment will reduce Clal Biotech's stake in Andromeda from 89% to 84% (77% on a fully diluted basis.

Andromeda will use the proceeds to finance the continuation of the Phase III clinical trial of its leading drug candidate, DiaPep277, for the treatment of type 1 diabetes, according to the Globes report. The trial includes 450 recently diagnosed patients aged 20-45 at 100 medical centers worldwide.

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