Cipla hikes stake in US-based Chase Pharmaceuticals to 16.7%

Cipla (EU) Ltd, the UK-based wholly-owned subsidiary of Cipla Ltd, has made an additional investment of $ 3 million (about Rs 20 crores) in the US-based Chase Pharmaceuticals to increase its stake from present 14.6 percent to 16.7 percent. In May 2014, Cipla had invested $1.5 million in Chase Pharmaceuticals, which is an early stage drug development company developing novel approaches to improve treatments for Alzheimer's disease, to acquire 14.6 percent.
 
“Cipla (EU) Ltd, UK, a wholly-owned subsidiary of the company made an additional investment of $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 on March 15, 2016.
   
Consequently, Cipla UK's total investment in Chase would aggregate to approximately $5.12 million for a 16.7 percent stake on a fully diluted basis.
 
As per the agreement signed in May 2014, Cipla had agreed to make an additional $4.5 million investment in Chase upon achievement of certain milestones.