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.
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.