The International Center for Dispute Resolution, US has asked Promius Pharma, a subsidiary of Dr. Reddy’s Laboratories Limited to pay $46.25 million (Rs 339.3 crore) to Hatchtech Pty Ltd, an Australian specialty pharmaceutical product company.
As per the arbitration award issued by arbitrational court, the company has been asked to pay an amount of $46.25 million (towards milestones, interest and fees) to Hatchtech Pty Ltd., in relation to the asset purchase agreement entered into between the parties in 2015, Indian pharma company informed the exchange.
Dr. Reddy’s Laboratories informed the exchange, “The company is exploring all legal options to challenge the award.”
On July 27, 2020, Dr. Reddy’s Laboratories had announced the receipt of an approval of Xeglyze (abametapir) lotion by the U.S. Food and Drug Administration (USFDA). “Such approval triggered the contractual pre-commercialisation milestone of $20 million payable to Hatchtech Pty Ltd. which is included in the above mentioned award and has already been accounted for and charged off in the Company’s financial statements for the financial year 2020-21,” stated Dr. Reddy’s Laboratories.
In 2015, announced the signing of a commercialisation deal with Hatchtech, an Australian pharmaceutical company developing head lice product, Xeglyze Lotion. The exclusive rights for this product are applicable for the territories of the United States, Canada, India, Russia and the CIS, Australia, New Zealand and Venezuela. Additionally, Hatchtech announced it will be filing its New Drug Application for Xeglyze with the US Food and Drug Administration (FDA). If approved, the product will be marketed in the United States by Promius Pharma, a wholly-owned specialty company of Dr. Reddy’s Laboratories.
