Orchid and Merck had in 2008 entered into an agreement to focus on discovery, development and commercialisation of new medicines to treat bacterial and fungal infections.
As per the agreement, Orchid Chemicals is eligible to receive payments over USD 100 million upon reaching various research and development milestones. It will also receive significant royalties on worldwide net sales of any products commercialized under the agreement.
Orchid Chemicals had said on Monday that it received approval from banks to raise USD 100 million via external commercial borrowings [ECB] for redeeming USD 117 million of foreign currency convertible bonds [FCCB] due in February 2012.
Orchid Chemicals shares were trading up over 6% at Rs 132.25 on NSE in noon trade.
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