Teva, Clal Biotech Amend Andromeda Deal

Israel’s Teva and Clal Biotechnology have rewritten their investment agreement in Andromeda Biotech.

Andromeda is developing DiaPep277, a synthetic peptide immunomodulator for the treatment of Type 1 diabetes. The Phase III trial is being conducted in Europe, and the interim results are due in early 2008, according to Israeli business daily Globes.

Teva had an option to acquire full ownership of Andromeda from Clal Biotechnology after interim results of a Phase III clinical trial of the company’s diabetes drug were obtained.

Under the new agreement, Clal Biotechnology will continue to own the controlling stake in Andromeda and will finance further trials and regulatory procedures. Teva will receive a marketing license for the drug in exchange for a smaller investment.