(12th May, 2014); Cipla announced that it is investing 21 million USD in Chase Pharmaceuticals, an early stage drug development company, based in Washington DC. Chase is focused on developing novel approaches to improve treatments for Alzheimer’s disease. It has a unique patented approach and is focused on improving the efficacy, safety and tolerability of existing Alzheimer medications.
Cipla – through its impact investment unit Cipla New Ventures – is investing in the Series B round of financing as part of a syndicate, which also consists of Edmond de Rothschild Investment Partners and New Rhein Healthcare LLC. Cipla New Ventures was set up to chart a trajectory in innovation around biologicals, repurposing existing safe drugs and leveraging Cipla’s enviable suite of delivery technologies through disruptive innovation around access and affordability. It is managed by Mr. Chandru Chawla.
The USD21 million two-phase financing will support Phase 2a and Phase 2b clinical trials for Chase’s lead drug CPC 201. The original venture funding for Chase was provided by the Brain Trust Accelerator Fund in 2010.
Commenting on the investment, Mr. Subhanu Saxena, MD & Global CEO, Cipla Ltd said, “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.”
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 USD203 billion annually with projections to reach USD1.2 trillion by 2050.
In addition to financing Chase, Cipla 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 where Cipla has championed affordable access to essential and life-saving medications for decades.
