Shilpa Biocare, a wholly owned subsidiary of Shilpa Medicare (NSE:SHILPAMED, BOM:530549), has agreed to acquire a 30.4% stake in Spanish biotechnology company Gate2Brain for 7 million euros, according to a Wednesday filing to the Indian stock exchanges.

Under the terms of the agreement, Shilpa will become a strategic shareholder of Gate2Brain and its dedicated chemistry, manufacturing, and controls (CMC), and regulatory partner for G2B-002 - Gate2Brain's lead program in brain cancer.

Gate2Brain is in the pre-clinical stage of product development currently for G2B-002, which has been granted Orphan Drug Designation by both the US Food and Drug Administration and the European Medicines Agency.

The company's shares were down over 1% in recent trade.