Mumbai: Drugmaker Cipla Ltd on Wednesday said its British subsidiary has sold its 16.7% stake in US-based Chase Pharmaceuticals Corp. to Allergan plc, following Allergan’s acquisition of Chase Pharma.
Cipla’s UK arm had acquired the stake in Chase Pharma in May 2014 through a syndicated venture investment, the company said in a press release.
Chase Pharma is a clinical-stage biopharmaceutical company focussed on development and commercialisation of improved treatments for neurodegenerative disorders.
The investment in Chase Pharma was part of Cipla New Ventures, a division of Cipla created in 2014-15 that invests in building innovation-led business streams for the company, which are distinct from the mainstream business.
Allergan plc announced the completion of its acquisition of Chase Pharma on 22 November. As part of the deal, Allergan will pay $125 million and potential regulatory and commercial milestones of up to $875 million to shareholders of Chase Pharma.
Chase Pharma has closed over $24 million in funding to date, with approximately $22 million through a Series B financing led by New Rhein Healthcare Investors LLC, Edmond de Rothschild Investment Partners, Cipla UK and Brain Trust Accelerator Fund.
In a stock exchange filing in March 2016, Cipla had said the UK subsidiary’s total investment in Chase Pharma is about $5.12 million for a 16.7% stake on a fully diluted basis.