TEL AVIV Feb 26 Israel's Clal Biotechnology
Industries said its subsidiary Andromeda Biotech is in
talks to be sold to an American pharmaceutical company for a
price that could reach hundreds of millions of dollars.
Andromeda signed a non-binding memorandum of understanding
to be sold to the unnamed firm, Clal, which owns 96 percent of
Andromeda, said in a statement to the Tel Aviv Stock Exchange on
Wednesday. Clal said the talks are at an early stage.
The price will include an upfront payment and future
milestone payments related to the development and sales of
DiaPep277, the Type I diabetes treatment Andromeda is
developing. The payment will also include double-digit royalties
from future sales.
Two days ago Teva Pharmaceutical Industries, the
world's biggest generic drugmaker, transferred its rights in
DiaPep277 and all of its shares in Andromeda to Andromeda for
DiaPep277 is in advanced phase 3 trials in more than 100
medical centres in North America, Europe, Israel and Argentina.
The main goal of the study is to preserve the ability of the
pancreas to secrete insulin in patients who receive treatment
Clal Biotechnology is a subsidiary of Clal Industries.
(Reporting by Tova Cohen)