Cipla to pick 14.6 per cent stake in Chase Pharmaceuticals for USD 1.5 mn

Drug firm Cipla will acquire 14.6 per cent stake in US-based Chase Pharmaceuticals Corporation Inc for $1.5 million.

The investment will be done through Cipla's wholly owned subsidiary Cipla (EU) Ltd, UK.

Cipla said it will also make an additional $4.5 million investment in Chase upon achievement of certain milestones.

"..Company has signed a definitive agreement to invest $1.5 million in Chase Pharmaceuticals Corporation Inc, US, to acquire 14.6 per cent stake in Chase on a fully diluted basis," Cipla said in a filing to the Bombay Stock Exchange.

Chase is an early stage drug development company, engaged in novel approaches to improve treatments for Alzheimer's disease.

Shares of Cipla were trading 1.57 per cent down in afternoon trade on the Bombay Stock Exchange.