Chennai-based global pharma major, Orchid Pharma has entered into a strategic partnership with Europe-based venture capital funded Allecra Therapeutics to develop novel antibiotics to combat multi-drug resistant bacterial infections.

The Swiss-based Allecra is a biopharmaceutical company is focused developing  novel treatments to combat multi drug-resistant bacterial infections. The company is based on a strategic partnership between its founders, Orchid Chemicals and its lead investors Forbion Capital Partners and Edmond de Rothschild Investment Partners.

Allecra’s €15 million Series A financing round was co-led by Edmond de Rothschild Investment Partners and Forbion Capital Partners. EMBL Ventures also participated.

As part of its investment into Allecra, Orchid has assigned to Allecra IP (Intellectual Property) related to an antibiotic discovery program which will then be pursued through further trials by Allecra.

Under the terms of the agreement, together with shareholding, Orchid will also be paid an upfront sum and is eligible to receive further royalties and exit bonuses based on Allecra’s progress.

Bacterial resistance to current antibiotics is widespread and growing exponentially leading to increased urgency to combat what has been called the “epidemic of antibiotic-resistance”. Allecra will aim to contribute to this cause by developing new treatments which overcome emerging bacterial resistance mechanisms, thereby saving lives of patients whose infections may otherwise be inadequately treated.

Commenting on this partnership, Orchid’s chairman and managing director K Raghavendra Rao said, “We have always believed in building collaborative business models to achieving our vision. This strategic partnership with Allecra is yet another demonstration of how we can create value by harnessing the relative strengths of each company.”

“To combat the increasing threat of bacterial resistance the medical community is trying to conserve the use of currently available antibiotics. At the same time, the biopharmaceutical industry is working to find new antibiotics. These objectives are complimentary activities in the increasingly urgent battle against bacterial resistance. Allecra has been formed in order to find new cures for some of the most widespread and hardest to treat resistant infections,” said Nicholas Benedict, CEO, Allecra.

Orchid was represented by the law firm Latham and Watkins.