Elbit Imaging: Gamida Cell Signs Deal With Novartis On Development Of NiCord

(RTTNews) - Israel-based Elbit Imaging Ltd. (EMITF) noted Tuesday of its unit Elbit Medical Technologies Ltd.'s announcement that Gamida Cell Ltd., in which Elbit Medical holds approximately 30.8 percent of the voting power, as well as Gamida Cell's majority shareholders, signed Option and Investment agreements with Novartis Pharma AG, a unit of Swiss pharmaceutical giant Novartis AG (NVS).

Under the agreements, Novartis will invest $35 million in Gamida Cell in exchange for approximately 15 percent of Gamida Cell's share capital and an option to purchase the holdings of the other shareholders in Gamida Cell.

The option is exercisable, for a limited period of time, following Gamida Cell achieving certain milestones relating to the development of NiCord. Gamida Cell estimates that these milestones will be met during 2015. In any event, the Option, if not exercised, will expire in first half of 2016.

Upon exercising the option, Novartis would pay other shareholders in Gamida Cell cash payments of approximately $165 million, in accordance with the terms of the agreements.

In addition, these shareholders will be entitled to potential future payments which can reach a total of $435 million, depending on certain development and regulatory milestones and on sales of Gamida Cell's products.

Gamida Cell is currently conducting two Phase I/II trials using NiCord to treat patients suffering from hematologic malignancies and Sickle Cell Disease.

Following completion of the investment under the agreements, Elbit Medical will hold about 24.7 percent in Gamida Cell.

In pre-market activity on the Nasdaq, Elbit shares were gaining 14.11 percent, at $0.220.

In Zurich, Novartis shares are currently trading at 80.05 Swiss francs, up 0.80 francs or 1.01 percent.