Drugmaker Cipla Ltd is divesting its minority 16.7 per cent stake in Chase Pharmaceuticals Corporation, a Delaware-based corporation, to a subsidiary of Allergan Plc. The move follows Allergan’s $125-million deal to acquire Chase.
In May 2014, Cipla’s UK subsidiary had invested $1.5 million (?8.9 crore) to acquire a minority stake in Chase Pharmaceuticals through a syndicated venture investment. The early stage drug development company had a patented approach to improve the efficacy, safety and tolerability of existing Alzheimer’s medications and was focused on developing new approaches to treat the disease. Cipla was to invest another $4.5 million in Chase on the achievement of certain milestones. Chandru Chawla, Cipla’s Head of Corporate Strategy and Cipla New Ventures, said that Cipla had made a meaningful contribution in advancing an Alzheimer’s drug (in Chase’s portfolio) to an advanced stage of development where the product has now successfully concluded Phase 2 study.