Dr. Reddy’s Laboratories on Monday said it has signed a deal with Hatchtech, an Australian pharmaceutical company to sell the latter’s prescription head lice product, Xeglyze lotion. Dr. Reddy’s will have exclusive rights to sell the product in the US, Canada, India, Russia and the CIS, Australia, New Zealand and Venezuela.
As part of the agreement, Dr Reddy’s will pay Hatchtech an upfront amount of $10 million upto $50 million, based on pre-commercialization milestones and an undisclosed amount based on post-commercialization milestones, linked to achievement of annual net sales targets.
Additionally, Hatchtech announced it will be filing its New Drug Application for Xeglyze with the US Food and Drug Administration (FDA) today. If approved, the product will be marketed in the US by Promius Pharma, a wholly-owned specialty company of Dr. Reddy’s Laboratories.
Hatchtech Pty Ltd is an Australian specialty pharmaceutical product company developing technology for the control of invertebrate pests. The Company’s lead product is Xeglyze Lotion, a novel, next generation head lice product in development that aims to overcome the frustrating, costly and inconvenient cycles of retreatment for head lice infestation. The company’s investors include OneVentures Innovation Fund, University of Melbourne Endowment Trust, Queensland Biotechnology Fund, GBS Venture Partners, Uniseed, and Australian Super.
In September 2014, Hatchtech announced positive results from its two pivotal phase 3 clinical studies evaluating Xeglyze lotion as a potential treatment for head lice infestation. The studies involved 704 people, across 14 clinical trial sites in the US and resulted in an 81.5% success rate, following the observation period of 14 days after a single 10 minute application. Xeglyze lotion, a topical formulation containing abametapir, an inhibitor of metalloproteases, has demonstrated both ovicidal and lousicidal activity and offers the potential for a more effective treatment using only a single application. The active drug substance was developed in collaboration with Dr. Reddy’s Custom Pharmaceutical Services (CPS) business unit.