Cipla buys 14.6% stake in Chase Pharma to support Alzheimer treatment
12 May 2014
Cipla Limited, a global drug maker that specialises in making affordable drugs to treat life-threatening diseases, today announced the acquisition of a 14.6-per cent stake in Chase Pharmaceuticals Corporation Inc of the US, for $1.5 million.
Cipla said post acquisition it would own 14.6 per cent in Washington-based Chase Pharmaceuticals, an early stage drug development company, on a fully diluted basis. The company is focused on developing novel approaches to improve treatments for Alzheimer's disease.
''It has a unique patented approach and is focused on improving the efficacy, safety and tolerability of existing Alzheimer medications.
The investment is being made through its wholly owned subsidiary, Cipla (EU) Limited, UK, the company said in a filing with the stock exchanges.
Cipla said it would invest another $4.5 million in Chase upon achievement of a certain milestone in drug development.
This is part of the $21-million two-phase financing that 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.
''This investment is consistent with Cipla New Ventures' mission to build more innovation-led business streams for Cipla in the future,'' said managing director and global chief executive officer Subhanu Saxena.
''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,'' he added in a Monday statement.
''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,'' Cipla said in a release.
Cipla New Ventures was set up for investing in innovative technologies around biologicals, revalidating existing safe drugs and leveraging Cipla's own suite of delivery technologies through disruptive innovation.
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.
''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,'' Subhanu Saxena, MD and global CEO of Cipla Ltd, said.
In India, over 5 million patients suffer from dementia, most of whom are afflicted with Alzheimer's, Cipla said, adding, these numbers are expected to double by 2030.
In North America, Alzheimer's disease affects more than 7 million patients and its impact is growing as the population ages. The disease costs the US alone $203 billion annually with projections to reach $1.2 trillion by 2050.
In addition to financing Chase, Cipla will collaborate with the company to develop the drug. If successful, Cipla may provide low-cost access to Chase's lead drug in India and South Africa where Cipla has championed affordable access to essential and life-saving medications for decades.