Dr Reddy’s Lab in US to pay $46.25 million to Hatchtech in arbitration award

Dr. Reddy's Laboratories  | Representative image.

Dr Reddy’s Laboratories Ltd’s arm in the United States of America has been asked to pay an amount of $46.25 million towards milestones, interest and fees to Hatchtech Pty Lt in an arbitration award.

Hyderabad-based Dr Reddy’s lab informed the Bombay Stock Exchange (BSE) that the order had been issued by the International Center for Dispute Resolution, USA, in relation to the asset purchase agreement entered into between the parties in 2015.

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"Such approval triggered the contractual pre-commercialization 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," Hindu BusinessLine quoted Dr Reddy’s as saying.

Earlier on July 27, Dr Reddy’s announced the receipt of an approval of XEGLYZE (abametapir) lotion, 0.74 per cent, a 505(b)(1) NDA by the US Food and Drug Administration (USFDA). Meanwhile, the Hyderabad-based pharma firm is mulling legal options to challenge the award.