Cipla   said its UK subsidiary has sold its entire stake in Chase Pharmaceuticals Corporation, a Delaware-based corporation, to a subsidiary of Allergan plc. Cipla UK arm, Cipla (EU) had 16.7 percent stake in Chase Pharmaceuticals, which was acquired in May 2014 via a syndicated venture investment.

Allergan has agreed to pay USD 125 million upfront plus potential regulatory and commercial milestones of up to USD 875 million to the shareholders of Chase, the healthcare firm said in its filing.

Chase Pharma was financed most recently by a series B consortium consisting of New Rhein Healthcare, Edmond de Rothschild Investment Partners and Cipla UK. Cipla Group is proud to have made a meaningful contribution in advancing an Alzheimers drug to an advanced stage of development where the product has now successfully concluded Phase 2 study, Chandru Chawla, Head of Corporate Strategy and Cipla New Ventures said.

Chawla believes that Chases pipeline will be successful at Allergan, given their strength as a leading CNS commercial franchise. At 12:37 hours IST, the stock was quoting at Rs 552.20, up Rs 2.45, or 0.45 percent on the BSE.