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Clal Biotechnology Industries has announced that it has completed the acquisition of DiaPep277 rights from Davlogan

This is a drug for the treatment of juvenile diabetes based on a substance that affects the function of the immune system and may stop the destruction of pancreatic cells that secrete insulin

Clal Biotechnology Industries announced the completion of the transaction for the acquisition of the rights to the drug DiaPep277 for the treatment of type 1 diabetes (juvenile diabetes) from Davlogan. The purchase was made through Andromeda, the wholly owned subsidiary of Clal Biotechnology Industries. According to the agreement, Devlogan will grant Andromeda exclusive rights to use the drug DiaPep277 in exchange for royalties from future sales of the drug and additional financial arrangements dependent on the success of milestones. The drug, in the development of which more than 100 million dollars have been invested to date, is in advanced clinical trials (phase III). At the same time, Andromeda entered into an agreement with Teva according to which, in exchange for reducing the royalties due to Teva on the product, Teva could purchase Andromeda in a specified time window, for a one-time sum and royalties.

Reuven Krupik, CEO of Clal Biotechnology Industries, states: "The completion of this unique transaction is another step in fulfilling the stated business strategy of Clal Biotechnology Industries: significant holding in portfolio companies, investment also in companies that are in advanced clinical stages, focusing on blue-white technology and value creation constant and sources of future profitability".

Dr. Shlomo Dagan, CEO of Andromeda, adds: "We have recruited an experienced management team that we believe will be able to complete the clinical development plan for the drug. Also, we are built on fruitful cooperation with all the bodies involved in the clinical trials for the drug, including doctors and researchers as well as world-renowned expert scientists and opinion leaders in the field of diabetes. We believe that Andromeda will be able to complete the program and lead the product towards global marketing approval, which may help many patients suffering from juvenile diabetes."

About DiaPep277 and type 1 diabetes

DiaPep277 is based on a substance that affects the function of the immune system and may stop the destruction of pancreatic cells that secrete insulin. In people with type 1 diabetes, this process may deteriorate into a complete inability to produce insulin and the patient's continuous dependence on external administration of insulin. To date, no safe and effective method has been found to stop the destruction of the immune system in type 1 diabetes patients or a cure for this complicated disease. DiaPep277® is in phase III of clinical trials being conducted in dozens of centers in Europe, South Africa and Israel. The estimated size of the market is hundreds of millions of $ per year.

About Clal Biotechnology Industries

Clal Biotechnology Industries (TA: Clalvi) is an active investment company, the largest in Israel in the field of life sciences. The company, which operates in an industrial-business orientation, invests in companies in various stages of development and in diverse fields of activity. The company, which enjoys strategic cooperation between its significant shareholders (including Kell Industries and Teva), is managed by ARTE headed by Reuven Krupik. Key portfolio companies: D-Pharm, Medivend, Curetech, Compugen (NASDAQ: CGEN), NST, Andromeda, Polyhill, BioCancell (TA: Bexel) and Biocan.

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