Gamida Cell completes $10m private placement

Cell therapy startup is confident of raising another $6m within three months, president Treves tells TheMarker.com
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Jerusalem-based cell therapy startup Gamida Cell has completed a $9.75 million private placement.

It is also in talks to raise another $6 million, president Avi Treves told TheMarker.com.

The terror attacks in the United States have discouraged foreign investment in Israel, Treves said. But he is confident that Gamida Cell can complete its fund-raising efforts within three months.

The fund-raising effort took some six months to wrap up. Investors included Elscint Biomedical of the Elbit Medical Imaging (Nasdaq:EMITF) group, Biomedical Investments, the Israeli fund Denali Ventures and the European venture fund Auriga.

The proceeds will be used to finance clinical trials, in which the company will be implanting therapeutic cells to be used in lieu of bone marrow cells. It aims to receive U.S. Food and Drug Administration approval for its cell therapy product in 2005, while continuing meanwhile to develop additional applications for its biomedical technology.

Gamida Cell, today managed by chief executive Fred Miesowicz, employs 27 people, mostly at its R&D center in Jerusalem. It recently set up a subsidiary in Boston, Massachusetts, to handle clinical and regulatory activities and part of its management. The company is chaired by Dr Benad Goldwasser, co-founder of Israeli stent-maker Medinol.