Looking to consolidate its research activities under a common umbrella, Orchid Chemicals & Pharmaceuticals Ltd today said it will buyout US-based Bexel Pharmaceuticals Inc by acquiring a 26 per cent stake , for over Rs 13 crore (three million dollars).
The company holds a majority 74 per cent stake in Bexel Pharma and would acquire the remaining 26 per cent stake as a part of an agreement reached between the two companies to bring the drug discovery activities under a unified structure, Orchid informed the Bombay Stock Exchange.
Orchid said that "bringing all drug discovery activities under a unified structure will provide seamless integration of the several drug discovery programmes being pursued at the company and Bexel, while retaining the advantages of having a discovery front-end in the US and a discovery-cum -developmental back-end at the company in Chennai." As part of the agreement, Orchid Pharma would grant 6.50 lakh stock options to Bexel's founders and key employees for subscription at a grant price, the company added.
Orchid said it had already established a wholly owned subsidiary, Orchid Research Laboratories Ltd (ORLL) to channel its drug discovery work.
Bexel has been focusing on drug discovery research in metabolic diseases such as diabetes, obesity and auto-immune diseases, while Orchid has been focusing on inflammation, cancer and anti-infective areas.