Concord Biotech Ltd on Thursday said it has invested $10 lakh (nearly Rs 85 crore) in US-based Palvella Therapeutics, Inc with an aim to establish a partnership to manufacture and commercialise 'Qtorin', a drug used to treat serious and rare genetic skin diseases.

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The company has made an investment of $10,00,000 in compulsorily convertible notes of Palvella Therapeutics, Inc which will be converted into around 71,446 equity shares, Concord Biotech said in a regulatory filing.

Palvella Therapeutics is in the business of clinical trials for developing and commercialising treatments for rare genetic skin diseases, it added.

On the objects of acquisition, Concord Biotech said it is aimed "to establish a partnership for the manufacture and commercialisation of 'Qtorin' utilised in the treatment of serious, rare genetic skin diseases".

"This funding will strengthen our collaboration with Palvella through a financial commitment, enhancing the potential for exporting our products to them," the company said.

The equity shares against the current investment will be allotted within 90 days of the investment, the filing said.