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Orchid Pharma today announced that it has entered into a strategic partnership with Europe-based venture capital funded 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.
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.
Allecra’s 15 million euro Series A financing round was co-led by Edmond de Rothschild Investment Partners and Forbion Capital Partners. EMBL Ventures also participated.
CH Ram, head-Corporate Communications & Investor Relations, Orchid Chemicals & Pharmaceuticals Ltd said, "Orchid will get $1 million in cash upfront now and once the entire process is completed, Orchid will hold 20% in Allecra.
Orchid’s Chairman & Managing Director K Raghavendra Rao said, "this strategic partnership with Allecra is yet another demonstration of how we can create value by harnessing the relative strengths of each company.”
