Companies

Arbitration award: Dr Reddy’s asked to pay $46.25 mn to Hatchtech in US

Our Bureau Hyderabad | Updated on June 16, 2021

The payment award was in relation to the asset purchase agreement entered into between the parties in 2015

An arm of Dr Reddy’s Laboratories Ltd in US has been asked to pay $46.25 million towards milestones, interest and fees) to Hatchtech Pty Lt in an arbitration award.

It was isued by the International Center for Dispute Resolution, USA, they Hyderabad-based Dr Reddy’s informed BSE.

The payment award was in relation to the asset purchase agreement entered into between the parties in 2015.

On July 27, 2020 the Company had 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)

“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,” Dr Reddy’s said.

The company is exploring all legal options to challenge the award, the intimation to the exchange said.

Published on June 16, 2021

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