Compugen, a Nasdaq-listed drugs developer, has sold a majority stake in its Keddem Bioscience subsidiary as part of a growth-equity round.
An undisclosed, private, US-based investment company will invest up to $15m in milestone related equity in Keddem, with Compugen maintaining a minority interest and certain future preferential access rights to utilize the Keddem technology with Compugen discovered drug targets.
The concept underlying the technology was initially conceived and developed within the chemistry division of Compugen. In 2004, the program was transferred to Keddem Bioscience.
Martin Gerstel, chairman of Compugen and Keddem, said: “This new financing specifically for Keddem enables Compugen to maintain its focus on predictive biology for the discovery of monoclonal antibodies and therapeutic proteins in the fields of immunology and oncology, while at the same time offering potential future benefits to our shareholders from both our equity interest in Keddem and our preferred access to its technology.”