Israel-based stem cell treatment company Gamida Cell has received a $35m investment from the corporate venturing arm of drugs maker Novartis in return for a 15% stake.
Novartis will also receive the option to fully acquire Gamida if milestones connected to the development of NiCord, a experimental treatment for hematological malignancies such as leukemia, are met by 2016.
Novartis would have to buy the company for close to $165m in cash, which could rise by an additional $435m depending on future sales of Gamida products, if the acquisition is to be completed.
Gamida raised $10m in a 2012 series E round from pharmaceutical companies Teva Pharmaceutical Industries and Amgen, diversified holding company Elbit Imaging, and venture capital firms Clal Biotechnology Industries, Israel Healthcare Ventures, Denali Ventures and Auriga Ventures.
Prior to that funding, Gamida raised $16m in a series D round in 2006. Novartis reportedly came close to acquiring the the company last year for about $600m, before the deal went cold.