Gamida will use the money to advance its clinical programs, including the development of NiCord, an experimental treatment for patients with high risk hematological malignancies or blood cancers such as leukemia, lymphoma and sickle cell disease.
In mid-2016, Gamida plans to initiate a Phase III clinical trial with NiCord, derived from a single cord blood unit, which is expanded and enriched with stem cells and immune modulatory cells, using the company’s NAM technology.
In August 2014, Novartis had invested $35m in return for a 15% equity interest in Gamida Cell.
According to the company, the deal could reach $600m if the Swiss firm exercises a buyout option that expires next year.
Gamida Cell president and CEO Yael Margolin said: "This support is testament to the potential of Gamida Cell’s immune therapy platform and its potential to improve outcomes for patients with diseases like leukemia and lymphoma who need a bone marrow transplant but who do not have a matched related donor."
As part of the new deal, Novartis will immediately invest $5m in Gamida Cell for an additional 2.5% stake.
Additionally, subject to the close of an equity financing by the end of 2017, Novartis will invest about another $10m to fund the late stage development of NiCord.
According to the company, as part of the agreement, Novartis will not have rights or options to Gamida products or technology.