Cipla invests additional $ 3mn in US's Chase Pharmaceuticals

New Delhi: Drug firm Cipla Ltd has made an additional investment of USD 3 million in US-based Chase Pharmaceuticals engaged in developing novel approaches to improve treatments for Alzheimer's disease.

The company in May 2014 had invested USD 1.5 million to acquire 14.6 per cent stake in Chase Pharmaceuticals.

"Cipla (EU) Ltd, UK, a wholly-owned subsidiary of the company.Made an additional investment of USD 3 million 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 USD 5.12 million for a 16.7 per cent stake on a fully diluted basis.

As per the agreement in May, Cipla had said it will make an additional USD 4.5 million investment in Chase upon achievement of certain milestones in this direction.

The investment done through Cipla (EU) Ltd, UK, was 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 were Edmond de Rothschild Investment Partners and New Rhein Healthcare.