Hadasit Bio is also investing $1 million in the company, which is developing protein-based drugs for autoimmune diseases and cancer.

Gali Weinreb Published by Globes [online], Israel business news - www.globes-online.com

Sanofi-Aventis SA (NYSE; Euronext: SNY) is investing $2.1 million in Hadasit Bio Holdings Ltd. (TASE:HDST) portfolio company KAHR Medical Ltd. at a company value of $5.5 million, before money. Hadasit Bio is also investing $1 million in the company and will convert a $2.1 million owner's loan into shares at a 20-30% discount on the price in the original investment agreement.

When the deal is closed, Hadasit Bio will own 65% of Kahr and Sanofi-Aventis will own 18%, and will have first rights to negotiate to buy Kahr's leading product. Kahr is developing protein-based drugs for autoimmune diseases and cancer.

Hadasit Bio CEO Ophir Shahaf told "Globes" that other portfolio company, Enlivex Therapeutics Ltd., is also in talks with a strategic investor. Enlivex is cell therapies for the induction of immune tolerance in autoimmune and inflammatory conditions such as graft versus host disease, solid organ transplant rejection, and Crohn’s disease.

Shahaf said that a third company, BioMarCare Technologies Ltd., is in talks with a financial investor. BioMarCare is developing next-generation molecular and serum-based diagnostic biomarkers for breast and colon cancers.

Shahaf added that Hadasit Bio was seeking new activities, and that it was in talks with two companies whose intellectual property rights were not from Hadassah Medical Organization.

"We're developing a new model, under which we'll carry out a test for our own due diligence.We're prepared to finance such a test in exchange for options, in order to improve our assurance about the product that we're buying and investing in."