Boston, MA 05\/05\/2014 (wallstreetpr) –\u00a0The Swiss-based Novartis AG (ADR) (NYSE:NVS) <\/b>was due to acquire the ownership of Jerusalem-based Gamida Cell, a stem cell technology company. However, that transaction is off, according to the parent companies of Gamida.<\/p>\n
Novartis was planned to take over the full ownership of Gamida in a sale transaction valued at $600 million. Gamida is owned by among others Teva Pharmaceutical Industries, Elbit Medical and Clal Biotechnology. Novartis, a Swiss multinational drug company, would have made an upfront payment of $170 million for the stem cell technology business. But that will not happen, and the next line of action is not known.<\/p>\n
Gamida Cell<\/b><\/p>\n
Gamida Cell is owned 28 percent by Elbit Medical and 22 percent by Clal Biotechnology. In addition to these companies, other shareholders in the Jerusalem-based company include Teva, Denali Ventures, Israel Healthcare Venture, Amgen and Auriga.<\/p>\n
The company develops a wide range of products for the treatment of a wide range of diseases especially solid tumors and blood cancers. Its pipeline also includes treatments for lymphoma and leukemia.<\/p>\n
The details about the termination of the deal were not immediately available. However, the parent companies are understood to be seriously looking for a buyer. The business will require somewhere around $10 million this year alone in funding and the holding companies think it prudent divest the stem cell business as doing so would fetch much more value for the shareholders. In any case, the ongoing consolidation and realignment in the drug manufacturing industry provides an important opportunity for such deals.<\/p>\n
Asset swap<\/p>\n
Novartis AG (ADR) (NYSE:NVS) and GlaxoSmithKline plc (ADR) (NYSE:GSK)<\/b> recently announced trading of assets. The assets-trading will see GSK’s cancer business transferred to Novartis while GSK will receive Novartis\u2019 vaccine division. The companies also announced a joint investment in the consumer health care.<\/p>\n
Asset deals between drug companies have become common in recent times as players seek to gain more strength in businesses where they are already doing well while exiting challenging businesses. Therefore, an attempt to acquire Gamida was in-line with what Novartis AG (ADR) (NYSE:NVS) already believes.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 05\/05\/2014 (wallstreetpr) –\u00a0The Swiss-based Novartis AG (ADR) (NYSE:NVS) was due to acquire the ownership of Jerusalem-based Gamida Cell, a stem cell technology company. […]<\/p>\n","protected":false},"author":6,"featured_media":20675,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[264],"tags":[1734,1740,1735,1464],"stock_ticker":[],"class_list":["post-21059","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-health","tag-glaxosmithkline-plc-adr-nysegsk","tag-novartis-ag-adr-nysenvs","tag-nysegsk","tag-nysenvs","entry"],"acf":[],"yoast_head":"\n