Andromeda Seeks Purchase From Unnamed American Drug Firm
Hundreds of millions of dollars are at stake for the purchase of Andromeda Biotech to an American pharmaceutical company. Andromeda, a subsidiary of Israeli biotech company Clal Biotechnology Industries, has made a non-binding memorandum to be sold to an unnamed American pharmaceutical firm that is said to own 96% of Andromeda. The announcement was made on the Aviv Stock Exchange Wednesday. It is reported that talks have begun and will proceed in the near future.
The price tag is said to include the down payment with milestones for the development of DiaPep227, a type I diabetes medication under development by Andromeda. Recently, Teva Pharmaceutical Industries transferred its rights in DiaPep277 and all of its shares in Andromeda to Andromeda. In addition to development of the drug, the agreement includes any future sales and profits.
The target of the drug investigation is to aid the pancreas to produce insulin in diabetics. DiaPep277 has already completed Phase II trials and is in the process of completing Phase 3 trials in over 100 medical facilities across North America, Israel, Europe and Argentina. The study is based on a treatment period of 24 months. More than 470 patients have been recruited for this study. If the drug passes Phase 3 trials, it will hit the market with a huge potential to earn signification profits.