Cipla invests additional Rs 20 crore in Chase Pharma

Drug firm Cipla Ltd has made an additional investment of $3 million (around Rs 20.2 crore) in US-based Chase Pharmaceuticals engaged in developing novel approaches to improve treatments for Alzheimer's disease.

The company in May 2014 had invested $1.5 million (about Rs 10.1 crore) to acquire 14.6% stake in Chase Pharmaceuticals.

"Cipla (EU) Ltd, UK, a wholly-owned subsidiary of the company...made an additional investment of $3 million (Rs 20.2 crore) in Chase Pharmaceuticals towards full settlement of its obligation under the agreement arrangement for investment in Chase," Cipla said in a BSE filing.

Consequently, Cipla UK's total investment in Chase would aggregate to approximately $5.12 million (Rs 34.5 crore) for a 16.7% stake on a fully diluted basis.

As per the agreement in May, Cipla had said it will make an additional $4.5 million (Rs 30.3 crore) investment in Chase upon achievement of certain milestones in this direction.

The investment done through Cipla (EU) Ltd, UK, was part of $21 million (Rs 141.4 crore) 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 were Edmond de Rothschild Investment Partners and New Rhein Healthcare LLC.

The original venture funding for Chase was provided by the Brain Trust Accelerator Fund in 2010.