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Israeli stem cell therapy 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 personal. With a market cap of simply $45 million, Gamida Cell goes by a difficult interval, with its share worth having misplaced 95% since its IPO.
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Primarily based in Jerusalem, Gamida Cell was based in 1998 and has advertising and marketing operations within the US. Final 12 months, 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 and marketing channels.
Quickly after the product’s launch, Gamida Cell introduced it was on the lookout for a advertising and marketing associate or a strategic various, in different phrases, to be offered or to promote the product, and needed to freeze improvement tasks in earlier phases that appeared enticing, to finance the advertising and marketing 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 in depth strategic course of to deal with its capital construction and liquidity constraints by partnering Omisirge with a 3rd get together. Sadly, that course of didn’t yield any actionable options. This restructuring will allow Gamida Cell to stay as a going concern and can assist our ongoing efforts to make Omisirge accessible to extra transplant facilities and their sufferers as a doubtlessly lifesaving donor supply possibility.”
In accordance with the settlement with Highbridge, it should 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 staff, representing 25% of its workforce. The corporate will shut down its Jerusalem improvement heart however will proceed to function its Kiryat Gat manufacturing heart.
Printed by Globes, Israel enterprise information – en.globes.co.il – on March 27, 2024.
© Copyright of Globes Writer Itonut (1983) Ltd., 2024.
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