Cipla invests additional $3 mn in US’s Chase Pharmaceuticals

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Drug firm Cipla   Ltd has made an additional investment of USD 3 million in US-based Chase Pharmaceuticals engaged in developing novel approaches to improve treatments for Alzheimer’s disease. The company in May 2014 had invested USD 1.5 million to acquire 14.6 percent stake in Chase Pharmaceuticals. “Cipla (EU) Ltd, UK, a wholly-owned subsidiary of the company…made an additional investment of USD 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. Consequently, Cipla UK’s total investment in Chase would aggregate to approximately USD 5.12 million for a 16.7 percent stake on a fully diluted basis. As per the agreement in May, Cipla had said it will make an additional USD 4.5 million investment in Chase upon achievement of certain milestones in this direction. The investment done through Cipla (EU) Ltd, UK, was part of USD 21 million syndicate to finance Phase 2a and Phase 2b clinical trials for Chase’s lead drug CPC 201 for treating the disease. Other investors in the syndicate were Edmond de Rothschild Investment Partners and New Rhein Healthcare LLC. The original venture funding for Chase was provided by the Brain Trust Accelerator Fund in 2010. Cipla stock price On March 16, 2016, Cipla closed at Rs 532.65, up Rs 7.95, or 1.52 percent. The 52-week high of the share was Rs 748.00 and the 52-week low was Rs 505.55. The company’s trailing 12-month (TTM) EPS was at Rs 19.63 per share as per the quarter ended December 2015. The stock’s price-to-earnings (P/E) ratio was 27.13. The latest book value of the company is Rs 137.93 per share. At current value, the price-to-book value of the company is 3.86.