Pluristem, an Israeli biotech startup, has sold a 17% stake in the company to the Chinese firm Innovative Medical. The company’s stock soared 8% in trading on the NASDAQ on Tuesday in response to the news.
Under the deal, Innovative will acquire 16, 890, 000 shares of Pluristem common stock at $1.77 per share. The two companies expect that the deal will be sealed by December 26 of this year.
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When trading closed at the end of October 25, Pluristem’s stock listed at $1.64 per share, up 12 cents from the day before, on high volume of 701, 060 shares.
Innovative Medical Management Co. Ltd. is a publicly listed Chinese healthcare company and an affiliate of Zheshang Venture Capital Co.
Pluristem Therapeutics Inc. is a clinical-stage biotherapy company which uses placental cells and what it calls a unique, proprietary, three-dimensional (3D) technology platform to develop cell therapies for conditions such as inflammation, ischemia, hematological disorders, or exposure to radiation.
So Israel’s Startup Nation continues to lead the world in the field of biotech. And the relationship between Israel and China continues to grow.
The company is looking for ways to use placental cells to treat all manner of disease. If you have heard of placental cells before it is because they are a type of stem cell which can be collected after the birth of a newborn baby. This spares companies such as Pluristem from angering anyone by using stem cells collected from aborted fetuses.
Pluristem Stock Soars 8% on $30M Chinese VC (PSTI) https://t.co/CHQ3cGOAqf
— Mohit Gang (@Mohit_Gang) October 26, 2016
Based in Haifa, Plurstem declares its strategy to be to develop powerful cell therapies that can be successfully commercialized to reach patients who need innovative treatment options. The company develops placenta-derived, “off-the-shelf” products that do not need genetic or tissue matching prior to administration and could be delivered in almost any clinical setting.
