Teva Pharmaceutical Industries has announced that it will invest $11.9m in diabetes drug developer Andromeda Biotech.

Andromeda’s parent company, Clal Biotechnology Industries, is also expected to invest $5.6m, bringing the total investment in Andromeda to $17.5m.

The investments will see Teva’s stake in Andromeda increase to 16%, and Clal’s stake fall from 89% to 84%.

Andromeda will use the additional investment to continue confirmatory Phase III clinical trials of diabetes treatment DiaPep277, and to obtain marketing approval for it in Europe and the US.