Mumbai, May 12: Cipla and a group of investors have invested around $21 million in US-based Chase Pharmaceuticals Corporation, which develops drug molecules to fight Alzheimer’s disease.
The investment will support two rounds of clinical trials of Chase’s lead drug CPC 201.
A press statement from Cipla said the company would also collaborate with Chase to develop the drug.
Cipla, therefore, could be in a position to offer a cheap Alzheimer’s drug in India and South Africa, where the Indian company have been selling affordable life-saving drugs for many years.
“This investment is consistent with Cipla New Ventures’ mission to build more innovation-led business streams for Cipla. 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 CEO of Cipla, said.
The investment by Cipla is part of a syndicated financing. Other investors in the syndicate are Edmond de Rothschild Investment Partners and New Rhein Healthcare LLC.
The original venture funding for Chase was provided by Brain Trust Accelerator Fund in 2010.
According to Cipla, over five million suffer from dementia in India alone. Most of them are afflicted with Alzheimer’s, with the numbers expected to double by 2030.
In North America, Alzhei-mer’s affects more than seven million and its impact is growing with an ageing population. The disease costs the US $203 billion annually. It is projected to reach $1.2 trillion by 2050.
India’s pharmaceutical exports grew 10.5 per cent year-on-year to $1.26 billion in April, according to the commerce ministry data. “This year we are expecting a healthy rate of growth in pharma exports. Regions such as Africa will help in enhancing exports,” an official said.
- Cipla, as part of a
syndicate, has invested around $21 million in Chase Pharma
- Chase develops drug
molecules to treat Alzheimer’s
- Cipla may offer a cheap Alzheimer’s medicine if it successfully collaborates with Chase to develop
its lead drug