Israel-based cellular treatment and immunotherapy developer Gamida Cell secured $40m in funding on Monday from investors including pharmaceutical firm Novartis.
The round was led by investment firm Shavit Capital and included VMS Investment Group, Israel Biotech Fund, Clal Biotechnology Industries (CBI) and Israel Healthcare Ventures.
Gamida Cell is working on therapies for cancer, genetic haematological and metabolic diseases, and refractory autoimmune diseases. The company’s lead product, NiCord, is expected to facilitate bone marrow transplantation.
The funding will go towards the completion of a phase 3 clinical trial for NiCord and will help prepare the therapy for commercialisation by boosting Gamida’s manufacturing capacity and US presence.
Gamida will also use the capital to continue development of additional pipeline products, including its CordIn therapy for rare genetic diseases and NK cells as a treatment for cancer.
Novartis participated in the latest funding round through a commitment made in 2015, when the corporate invested $5m in Gamida and pledged an additional $10m so long as Gamida closed its next funding round by the end of 2017. Novartis had already paid $35m for a 15% stake in Gamida in 2014.
Gamida Cell received $16m in a 2006 series D round before adding $10m in 2012. Its other shareholders include investment holding comany Elbit Imaging, pharmaceutical firm Teva Pharmaceutical Industries, Denali Ventures and Auriga Ventures.