Drug firm Cipla Ltd on Monday said it will invest USD 1.5 million to acquire 14.6 per cent stake in US-based Chase Pharmaceuticals engaged in developing novel approaches to improve treatments for Alzheimer’s disease.
“..Company has signed a definitive agreement to invest USD 1.5 million in Chase Pharmaceuticals Corporation Inc, US, to acquire 14.6 per cent stake in Chase on a fully diluted basis,” Cipla said in a BSE filing.
The investment, done through Cipla’s wholly owned subsidiary Cipla (EU) Ltd, UK, will be part of USD 21 million syndicate to finance Phase 2a and Phase 2b clinical trials for Chase’s lead drug CPC 201 for treating the disease.
Other investors in the syndicate are Edmond de Rothschild Investment Partners and New Rhein Healthcare LLC.
“The USD 21 million two-phase financing will support Phase 2a and Phase 2b clinical trials for Chase’s lead drug CPC 201,” Cipla said.
The original venture funding for Chase was provided by the Brain Trust Accelerator Fund in 2010.
Commenting on the investment, Cipla Ltd MD and Global CEO Subhanu Saxena said: “This investment is consistent with Cipla New Ventures’ mission to build more innovation-led business streams for Cipla in the future.”
Elaborating on the importance of the investment, Cipla said: “In India, over 5 million patients suffer from dementia, most of whom are afflicted with Alzheimer’s. These numbers are expected to double by 2030.”
Cipla also said it will make an additional USD 4.5 million investment in Chase upon achievement of certain milestones in this direction.