The $21 million two-phase financing from Cipla will support Phase 2a and Phase 2b clinical trials for Chase’s lead drug CPC201
Cipla Ltd said it invested $1.5 million for buying a 14.6% stake in US-based Chase Pharmaceuticals Corp. The investment will be done through Cipla's UK subsidiary Cipla (EU) Ltd.
In a regulatory filing, the pharmaceutical company said, Chase has a unique patented approach and is focused on improving the efficacy, safety and tolerability of existing Alzheimer medications.
The $21 million two-phase financing will support Phase 2a and Phase 2b clinical trials for Chase’s lead drug CPC201. The original venture funding for Chase was provided by the Brain Trust Accelerator Fund in 2010, Cipla said in the filing.
“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, managing director and global chief executive of Cipla said.
In India, over 5 million patients suffer from dementia, most of whom are afflicted with Alzheimer’s. These numbers are expected to double by 2030. In India, the caregiver is the family and the economic and social impact is far reaching. In North America, Alzheimer’s disease affects more than over 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.
Cipla said, in addition to financing Chase, it 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, the company added.
Cipla closed Monday 1.3% up at Rs387 on the BSE while the 30-share Sensex ended the day 2.2% higher at 23,494.
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