JERUSALEM Teva Pharmaceutical Industries has invested $11.9 million in Andromeda Biotech, a company that develops diabetes drugs, according to published reports.
In addition, Andromeda parent company Clal Biotechnology Industries will invest another $5.6 million. The two investments will result in Teva having a 16% stake in Andromeda and Clal having an 84% stake.
Andromeda will use the money from the investment to fund development of DiaPep277, a Type 1 diabetes treatment in late-stage clinical studies for which the company hopes to gain regulatory approval in the United States and Europe. The drug is designed to prevent destruction of insulin-producing cells in the pancreas in patients who still have some of the cells remaining and is considered the first drug to work in this way.