Cipla has announced that the company's wholly owned subsidiary Cipla (EU) UK, has signed a definitive agreement to invest USD 1.5 million in Chase Pharmaceuticals Corporation, US (Chase) to acquire 14.6% stake in Chase on a fully diluted basis. Cipla will make an additional USD 4.5 million investment in Chase upon achievement of certain milestones.
Chase is an early stage drug development company developing novel approaches to improve treatments for Alzheimer's disease.
Cipla - through its impact investment unit Cipla New Ventures - is investing in the Series B round of financing as part of a syndicate, which also consists of Edmond de Rothschild Investment Partners and New Rhein Healthcare LLC.
The $21 million two-phase financing will support Phase 2a and Phase 2b clinical trials for Chase's lead drug CPC 201. The original venture funding for Chase was provided by the Brain Trust Accelerator Fund in 2010.
Commenting on the investment, Subhanu Saxena, MD & Global CEO, Cipla said, ''This investment is consistent with Cipla New Ventures' mission to build more innovation-led business streams for Cipla in the future. We want to bring affordable medicines, where we identify an unmet patient need, in a way that leverages Cipla's formidable technology, device and development capabilities.''
Shares of the company declined Rs 5.65, or 1.44%, to trade at Rs 386.90. The total volume of shares traded was 159,256 at the BSE (12.23 p.m., Monday).