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Drugmaker Cipla's wholly-owned subsidiary Cipla (EU) Ltd., UK, will acquire a 10.35 percent stake in Ethris GmbH, Germany for a total investment of €15 million.

Cipla's unit will acquire 9,939 common shares of Ethris of face value of €1 each for the stake.

Incorporated in Germany, Ethris is a pre-clinical stage firm working on a proprietary non-immunogenic mRNA platform. It is known for delivering mRNAs directly to the respiratory system, including administration by inhalation.

mRNA or Messenger RNA are molecules that carry the genetic information needed to make proteins. They carry the information from the DNA to the cytoplasm, where the proteins are made.

Through this investment, Cipla will facilitate a long-term strategic partnership with Ethris to develop mRNA-based therapies and also fast track the company's foray into the space. The agreement will also pave the way for Cipla to market Ethris' innovative portfolio in Cipla's key emerging markets.

The transaction is expected to be completed within the next 60 days from the date of signing of the agreement or any other time period as agreed upon mutually, subject to completion of regulatory formalities.

Between 2019 and 2021, Ethris has had revenue of €5.81 million, €16.82 million and €5.45 million respecively.

Umang Vohra, MD & CEO of Cipla said that the mRNA-based therapies will be one of the key innovation levers for Cipla, adding that the deal is in line with the company's aspiration of attaining global lung leadership.

Shares of Cipla are up 17 percent this year and are among the few outperformers within the pharmaceuticals space along with Sun Pharma.

First Published:Dec 30, 2022 7:54 AM IST