Andromeda Biotech Ltd. has obtained orphan drug status from the US Food and Drug Administration (FDA) for its DiaPep277 drug for the treatment of type 1 (juvenile onset) diabetes.
Andromeda is currently conducting a Phase III clinical trial of Diapep277, which can prevent the destruction of insulin secreting beta cells. The drug is designed to treat type 1 diabetes patients with residual insulin secreting cells in order to preserve their function.
Orphan drug status gives the company seven years marketing exclusivity in the US, tax breaks, assistance in registration, and in financing of clinical trials.
Clal Biotechnology Industries Ltd. (TASE: CBI), the life sciences investment arm of Nochi Dankner-controlled IDB Holding Corp. Ltd. (TASE:IDBH), owns 84% of Andromeda, and Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) owns 16%.
Clal Biotech's share price rose 3.6% by mid-afternoon to NIS 12.90, giving a market cap of NIS 1.3 billion. Teva's share price fell 1.1% to NIS 147.60, after rising 0.2% on Nasdaq yesterday to $38.98, giving a market cap of $36.7 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on May 22, 2012
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