Israeli stem cell remedy firm Gamida Cell (Nasdaq: GMDA) has introduced that Highbridge Capital Administration, the corporate’s principal lender, will convert its $75 million bond into shares, and take the corporate non-public. With a market cap of simply $45 million, Gamida Cell goes by means of a difficult interval, with its share worth having misplaced 95% since its IPO.
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Based mostly in Jerusalem, Gamida Cell was based in 1998 and has advertising operations within the US. Final yr, the corporate succeeded in bringing a product to marketplace for the primary time. Omisirge shortens restoration time after stem cell transplant and reduces the speed of an infection, however there have been few orders because the money within the firm’s coffers runs low whereas it has not but constructed advertising channels.
Quickly after the product’s launch, Gamida Cell introduced it was searching for a advertising accomplice or a strategic various, in different phrases, to be bought or to promote the product, and needed to freeze improvement initiatives in earlier levels that appeared engaging, to finance the advertising exercise of the lead product.
However right this moment Gamida Cell president and CEO Abbey Jenkins mentioned, “In March 2023, Gamida Cell launched into an intensive strategic course of to handle its capital construction and liquidity constraints by partnering Omisirge with a 3rd occasion. Sadly, that course of didn’t yield any actionable options. This restructuring will allow Gamida Cell to stay as a going concern and can help our ongoing efforts to make Omisirge accessible to extra transplant facilities and their sufferers as a doubtlessly lifesaving donor supply possibility.”
In response to the settlement with Highbridge, it would inject an extra $30 million into the corporate, and much more if the product achieves sure milestones.
As a part of the restructuring course of, Gamida Cell will lay off a number of dozen workers, representing 25% of its workforce. The corporate will shut down its Jerusalem improvement heart however will proceed to function its Kiryat Gat manufacturing heart.
Revealed by Globes, Israel enterprise information – en.globes.co.il – on March 27, 2024.
© Copyright of Globes Writer Itonut (1983) Ltd., 2024.
