Sector News

Novartis makes concerted push into Israeli biotech startup scene

February 19, 2015
Life sciences
Over the past year, Novartis has struck a pair of deals in Israel, snagging an option to buy Gamida Cell and a stake in BioLineRx. The geographic proximity of the two targets is no coincidence–Novartis is in the middle of a concerted push into the Israeli biotech startup scene.
 
In August, the Swiss Big Pharma invested $35 million (€31 million) in Gamida Cell for a 35% stake and an option to acquire the company and its stem cell therapies for a further $165 million plus milestones. Four months later, Novartis returned to Israel with $10 million to take a stake in BioLineRx. The deals mark the start of an attempt to correct a historic imbalance in the geographic focus of Novartis’ business development activities. 
 
“When we examined our investment portfolio, it became clear that our exposure to Israel is very limited, despite the fact that there’s a great deal of talent and innovation,” Novartis Pharma Chief David Epstein told Globes. Hooking up with BioLineRx is Novartis’ attempt to catch up. “[BioLineRx] is meant to take the money, identify the Israeli startups and then acquire the rights to develop their technologies. We will be able to buy these technologies from them, if they advance well,” he said.
 
The arrangement gives Novartis a direct line to the Israeli R&D ecosystem, which has spawned a large number of biotechs and the odd controversy. BioLineRx can potentially help Novartis sift through the array of targets to increase the odds of finding the next drug to join Copaxone on the list of Israeli success stories, while avoiding problems akin to those that dogged Hyperion Therapeutics ($HPTX) acquisition of Yavne-based Andromeda Biotech.
 
By Nick Paul Taylor
 

comments closed

Related News

April 26, 2024

Former Bristol Myers CEO tapped as Novartis’ next board chair

Life sciences

Giovanni Caforio, the former CEO of Bristol Myers Squibb, is set to become the next board chairman of Novartis, which on Tuesday proposed the pharmaceutical industry veteran as its pick to replace Joerg Reinhardt in the role next year. Reinhardt has served as Novartis’ chair since 2013 and plans to retire when his 12-year term ends in 2025.

April 26, 2024

GE HealthCare launches voice-activated, AI-powered ultrasound machines for women’s health

Life sciences

GE HealthCare has raised the curtain on two ultrasound systems equipped with artificial intelligence programs designed to assist in diagnosing conditions in women’s health, including obstetric exams. The Voluson Signature 20 and 18 imaging systems include AI tools capable of automatically identifying and annotating measurements of fetal anatomy.

April 26, 2024

Scientists reveal new method that could reduce waste from drug manufacturing

Life sciences

Scientists from the University of Edinburgh’s School of Chemistry have revealed a new sustainable method of manufacturing complex molecules that could reduce waste produced during drug production. The method published in Nature Chemistry could help to prevent severe side effects caused by drugs that can exist as enantiomers.

How can we help you?

We're easy to reach