INDIA – Cipla’s shares increased by a percent after the drug producer resolved a funding dispute with the US-based pharmaceutical company Pulmatrix Inc.

The funding squabble with Pulmatrix Inc was over the development of Pulmazole, a bronchial asthma treatment that is currently in the works.

According to reports, Cipla and Pulmatrix reached an agreement in 2019 to collaborate on the development of a formulation for the treatment of allergic bronchopulmonary aspergillosis in bronchial asthma patients.

Cipla applied sciences (a Cipla subsidiary) and Pulmatrix Inc. signed a definitive agreement for the joint development and commercialization of Pulmazole.

Pulmazole is an inhaled iSPERSE formulation of itraconazole used to treat allergic bronchopulmonary aspergillosis (ABPA) in asthma patients.

According to reports, Pulmatrix Inc announced on Tuesday that it has completed a modification to the earlier agreement for the development and commercialization of Pulmazole.

The completion of the modification resolves Pulmatrix’s previously disclosed dispute with Cipla regarding the continued funding of the event prices for Pulmazole,” according to Pulmatrix.

Cipla’s stock reached a high of Rs 924.15 (US$12.24) on the National Stock Exchange, up from an earlier close of Rs 914.15 (US$12.10).

According to the second modification, Cipla will proceed to reimburse Pulmatrix for 50% of all third-party prices for the event of Pulmazole.

Cipla will reimburse an additional 10% of Pulmatrix’s direct prices if certain improvement milestones are met on time, according to the agency.

Meanwhile, Cipla, the pharmaceutical conglomerate, announced that Kedar Upadhye has resigned as the company’s global chief financial officer and key managerial personnel in order to pursue professional interests outside of the pharmaceutical or healthcare sectors.

According to the company, Upadhye will serve his full three-month notice period, which ends on May 3, 2022, and will continue in his current role as global chief financial officer and key managerial personnel until relieved.

The board will announce the successor in due course, the company added. Upadhye said: “The last 5 years at Cipla have been extremely gratifying. Under the guidance of Samina Hamied, Umang Vohra and the entire Management Council we have delivered across our strategic priorities and have set strong management and governance processes.

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