Andromeda Gets Teva’s Shares Back, Sells to American Drug Company
Andromeda Biotech Ltd. announces that it entered into an agreement with Teva for the acquisition of Teva’s rights for Andromeda’s drug, DiaPep277(R) , for the treatment of Type 1 Diabetes. Teva invested in the company when it was still known as Peptor. Teva could gain $72 million through future payments based on Andromeda’s revenues or on proceeds payable to its shareholders. Following the retrieval of the Teva shares, Clal Biotechnology, the owner of Andromeda announced plans to sell the company to an American Drug Company. DIA-AID 2, the confirmatory phase 3 study, is being conducted in more than 100 medical centers in North America, Europe, Israel and Argentina. The study is double-blind, placebo-controlled with a treatment period of 24 months. Subjects enrolled to the study are newly diagnosed type 1 diabetes patients 20-45 years of age. Recruitment of 475 patients was completed in September 2012 and the study is expected to finish at the end of 2014. The main goal of the study is to preserve the ability of the pancreas to secrete insulin in patients who receive treatment with DiaPep277(R) compared to the placebo group. Clinical endpoints include maintenance of glycemic control of treated patients. DiaPep277(R) , a unique peptide of 24 amino acids derived from the sequence of the human heat shock protein 60 (Hsp60), was invented by Prof. Irun Cohen and his team at the Weizmann Institute of Science. The peptide acts by modulating the immune system, thus preventing the destruction of pancreatic cells that secrete insulin and preserving their natural function. Treatment of type 1 diabetes patients with DiaPep277(R) may have several medical benefits including slowing the deterioration of the disease, improved metabolic control, reduction of daily insulin dose requirements, and reduction of diabetic complications. Andromeda Biotech Ltd., a subsidiary of Clal Biotechnology Industries Ltd. (TASE:CBI), is focused on the development of an innovative treatment for autoimmune diabetes. Andromeda’s DiaPep277(R) , currently in Phase III Clinical Studies, is a novel therapeutic approach to treat type 1 diabetes.