YAVNE, Israel, June 17, 2010 (GLOBE NEWSWIRE) -- Andromeda Biotech Ltd. announces that Teva Pharmaceutical Industries Ltd. decided to exercise its option to invest in Andromeda Biotech Ltd. ("Andromeda") at a company per-money valuation of 170 million US dollars.
Teva exclusively licensed Andromeda's lead product, DiaPep277(R), for the treatment of Type 1 Diabetes and received worldwide marketing rights for the product.
Pursuant to the exercise of the option, Teva and Clal Biotechnology Industries (CBI) will invest an additional total of 17.5 million US dollars in Andromeda (11.9 M US$ by Teva, 5.6 M US$ by CBI).
This investment will be utilized by Andromeda to perform DIA-AID 2, a confirmatory Phase III clinical study using DiaPep277(R) for the treatment of newly diagnosed Type 1 Diabetes patients.
DIA-AID 2 will include 450 patients 20-45 years of age. The study is double-blind, placebo-controlled with a treatment period of 24 months. The main goal of the study is to maintain the ability of the pancreas to secrete insulin in patients who receive treatment with DiaPep277(R) compared to the placebo group.
Enrollment of patients has begun in the US as part of a global trial which will be conducted at 100 medical centers in North America, Europe, and Israel.
Shlomo Dagan, CEO of Andromeda, commented, "The current funding will enable Andromeda to continue with our clinical studies using DiaPep277(R) as planned. Our program places Andromeda in the lead to fulfill the unmet need for preserving pancreatic cell function in Type 1 Diabetes patients."
About Andromeda Biotech
Andromeda Biotech Ltd., a subsidiary of Clal Biotechnology Industries Ltd. (TASE:CBI), is focused on the development of an innovative treatment for autoimmune diabetes. Andromeda's DiaPep277(R), currently in Phase III Clinical Studies, is a novel therapeutic approach to treat Type 1 Diabetes. It is a unique peptide derived from the human protein, HSP60, which immunomodulates the immune system, prevents the destruction of pancreatic cells that secrete insulin and preserves their natural function.
Type 1 Diabetes affects approximately 1% of the world's population. To date, there is no therapy capable of preventing the destruction of insulin secreting beta cells. Initially, DiaPep277(R) is targeted to treat newly diagnosed Type 1 Diabetes adult patients with residual insulin secreting cells. Other potential target populations are children with Type 1 Diabetes, patients with a high risk of developing Type 1 Diabetes, and Type 1 Diabetes patients with slow progressing disease.
For more information about Andromeda Biotech please visit our site: (www.andromedabio.com)
Andromeda Biotech Ltd.
Shlomo Dagan, CEO
+972 8 938 7777