Gamida Cell has a second chance to be an Israeli success story
Success through technological innovation has become a cornerstone not just of the Israeli economy but of its society as well. The start-up culture woven throughout the country’s fabric has driven founders to create projects that have helped solve insurmountable problems across multiple industries. Whether in medicine, computing, or agriculture – innovative companies have left an indelible mark that echoes beyond Israel’s borders.
But what happens when a company’s footprint risks being washed away?
It’s easy to focus on the success stories in hi-tech while sweeping less-fortunate projects under the rug – which in reality, is what happens to most start-ups. However, when the impacts of a project are potentially transformative to overcoming the most pressing medical challenges of our time, it’s a bit harder to ignore.
For instance, if a medical company is working to alleviate complications and extend the lives of patients with cancer through groundbreaking tech, the utility of its technology makes it virtually imperative that it survives. However, the stigma surrounding pride and self-reliance throughout the Israeli tech ecosystem can sometimes put projects in a precarious position to stay afloat.
No one loves needing to ask for a helping hand, but when potentially life-saving technology is at stake, some extra measures must be taken.
This is the case with Gamida Cell, a biopharmaceutical company primarily based in Kiryat Gat, Israel operating since 1998. Specializing in cancer treatment, Gamida Cell’s claim to fame is advancing potentially curative cell therapies for various cancers – specifically through its proprietary “NAM” stem-cell technology available under the customizable “Omisirge” product.
The core of Gamida Cell’s NAM technology enables stem cell extraction from a foreign donor and enhances those cells’ therapeutic abilities through ex-vivo expansion. Once the therapy cells are ready, they’re sent to transplant centers for patient bone marrow infusions – fostering a rapid stem cell engraftment through Omisirge that gives patients a chance to extend their lives.
Such a delicate medical process requires a mountain of personalized care, attention, and analysis – which does come at a high cost. But Omisirge’s benefits in revitalizing a patient’s immune system for easier recovery are vital, especially for those battling complex blood cancers through intense conditioning regimens.
It was cruelly ironic that until recently, a company providing life-saving technology was running out of lifeblood in the way of financial support to keep operating.
Earlier this week, a court approved the creditors arrangement for Gamida Cell that was supported by Highbridge Capital Management, LLC as the only long-term financing solution available to address its capital needs and keep Omisirge available for patients.
Since going public on the NASDAQ stock exchange in 2018, Gamida Cell’s GMDA stock has gone through turbulent waves of volatility – all while its financial needs continued to mount. As the company neared insolvency and risked losing the life-saving innovations it has pioneered, the court ruled in favor of the plan supported by Highbridge that would rescue Gamida Cell and revert it to becoming private.
Gamida Cell doesn’t have the luxury of time. While the company is dedicated to continuing its work to improve outcomes for patients with blood cancers and to maintaining a majority of its operations – it’s running out of runway to do so.
The restructuring plan gives Gamida Cell a new lease on life and opens up its prospects. That includes expanding Omisirge’s footprint to onboard more patients who would incredibly benefit from its donor source technology.