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Gamida Cell Ltd. has raised another $16 million for its stem cell research. The investors were Israel Healthcare Ventures Ltd. and existing investors Denali Ventures, Biomedical Investments, Elscint Biomedical Investment (a subsidiary of Elbit Medical Imaging Ltd. (Nasdaq: EMITF)), and Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA). As I’ve said several times before, it’s better to seek investments in stem cells through large and stable companies with substantial holdings in start-ups in the field.

Based on what I’ve heard from knowledgeable people, Gamida Cell has a number of products that appear good and promising, especially products for rebuilding parts of the heart. An investor should realize that nothing significant will happen on Main Street before 2009 at the earliest, but several things can happen on Wall Street.

With time, investors specializing in healthcare are beginning to distinguish between the values of different companies. If a company like Gamida Cell stays at the technological forefront and approaches Main Street, its value will rise substantially. Believe me, if the company achieves a breakthrough in 2009, the effect on Elbit Medical Imaging and even Teva will be massive.

For the speculators amongst you, the dreamers who are always seeking the next big thing, I say: A big thing will unquestionably come from stem cells, but the risk is huge at the moment, so I prefer owning shares in Elbit Medical Imaging or Teva, or both. Believe me, it’s a lot safer.

I’m encouraged by the fact that Gamida Cell’s management and board of directors are made up of an exceptional team, headed by president and CEO Dr. Yael Margolin, who, after seven years at Teva, where she was responsible for the development of new products, worked for six years at Denali Ventures. The company’s advisory board includes some world leaders in various aspects of stem cell research.

Published originally by Globes [online], Israel business news - © Copyright of Globes Publisher Itonut (1983) Ltd. 2006. Republished on Seeking Alpha with full permission.

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Source: Investing in Stem Cell Research the Safer Way