New Delhi: Drug firm Orchid Chemicals & Pharmaceuticals today said it has inked a strategic pact with Europe-based Allecra Therapeutics to develop novel antibiotics to combat multi-drug resistant bacterial infections.
"As part of its investment into Allecra, Orchid has assigned to Allecra IP (Intellectual Property) related to an antibiotic discovery program which will then be pursued through further trials by Allecra," Orchid Chemicals said in a statement.
Under the terms of the agreement, together with shareholding, Orchid will also be paid an upfront sum and is eligible to receive further royalties and exit bonuses based on Allecra`s progress, it added.
"This strategic partnership with Allecra is yet another demonstration of how we can create value by harnessing the relative strengths of each company," Orchid Chairman and Managing Director K Raghavendra Rao said.
Commenting on the development Allecra CEO Nicholas Benedict said that Allecra has been formed in order to find new cures for some of the most widespread and hardest to treat resistant infections.
Bacterial resistance to current antibiotics is widespread and growing exponentially leading to increased urgency to combat what has been called the `epidemic of antibiotic resistance`.
Shares of Orchid Chemicals & Pharmaceuticals were trading at Rs 68.50 on the BSE in late afternoon trade, up 2.39 per cent from their previous close.