Cipla declines after making additional investment in Chase Pharmaceuticals Corporation Inc

Cipla fell 1.09% to Rs 519 at 10:27 IST on BSE after the company announced that its subsidiary has made an additional investment in Chase Pharmaceuticals Corporation Inc., US towards full settlement of its obligation under the agreed arrangement.

The announcement was made before market hours today, 16 March 2016.

Meanwhile, the BSE Sensex was down 90.44 points, or 0.37%, to 24,460.73

On BSE, so far 30,361 shares were traded in the counter, compared with an average volume of 1.38 lakh shares in the past one quarter. The stock hit a high of Rs 526.95 and low of Rs 516.80 so far during the day. The stock hit a 52-week high of Rs 748 on 17 August 2015. The stock hit a 52-week low of Rs 505.55 on 29 February 2016. The stock had underperformed the market over the past one month till 15 March 2016, falling 2.87% compared with Sensex's 4.23% rise. The scrip had also underperformed the market in past one quarter, sliding 17.71% as against Sensex's 3.04% fall.

The large-cap company has an equity capital of Rs 160.68 crore. Face value per share is Rs 2.

Cipla announced that its wholly owned subsidiary Cipla (EU), UK (Cipla UK) has made an additional investment of $3 million in Chase Pharmaceuticals Corporation Inc., US (Chase) towards full settlement of its obligation under the agreed arrangement announced in May 2014 for investment in Chase. Consequently, Cipla UK's total investment in Chase would aggregate to approximately $5.12 million for a 16.7% stake on a fully diluted basis. Chase is an early stage drug development company developing novel approaches to improve treatments for Alzhemimer's disease.

Cipla's consolidated net profit rose 4.7% to Rs 343.20 crore on 13.5% growth in total income to Rs 3185.85 crore in Q3 December 2015 over Q3 December 2014.

Cipla is a global pharmaceutical company.

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