Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) has exercised its option to make an additional investment in MultiGene Vascular Systems Ltd. (MGVS), which is developing treatments for disorders of the blood vessels, at a company value of $135 million. Teva exercised the option upon the completion of a clinical trial of MGVS's Phase I/IIa clinical trial of its MultiGeneAngio cell therapy-based treatment of chronic critical limb ischemia, a severe form of peripheral artery disease (PAD, or blocked arteries) in the leg.
MultiGeneAngio is composed of a cell suspension of endothelial and smooth muscle cells, which are isolated from a short vein segment removed from the patient's arm under local anesthesia. These cells are then expanded, characterized, and finally gene modified by the transfer of angiogenic genes. The MultiGeneAngio is injected intra-arterially at the site of blockage using a standard diagnostic catheter, in order to expand and create new collateral arteries, thereby improving blood flow to the ischemic limb.
MGVS began the Phase I/IIa safety and efficacy trial of MultiGeneAngio in November 2009.
In October 2009, Teva invested $4 million in MGVS as part of an $8.5 million financing round, at a company value of $20 million, before money.
MGVS's investors are Teva, Aviv Venture Capital, DFJ Tamir Fishman Ventures Ltd. (TASE: TFVC), and Ofer Hi Tech Ltd. On the basis of MGVS's new company value, DFJ Tamir Fishman will report a $9 million capital gain on its holding in the financial report for the fourth quarter of 2011.
Published by Globes [online], Israel business news - www.globes-online.com - on January 26, 2012
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