By: ICN Bureau
Last updated : January 27, 2022 5:49 pm
The company is exploring all legal options to challenge the award.
Dr. Reddy's Laboratories has announced about the receipt of an arbitration award issued by the International Center for Dispute Resolution, U.S., whereby a subsidiary of Dr. Reddy's Laboratories Limited (the Company) has been asked to pay an amount of US$46.25 mn (towards milestones, interest and fees) to Hatchtech Pty Ltd., 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%, a 505(b)(1) NDA by the U.S. Food and Drug Administration (USFDA). Such approval triggered the contractual pre-commercialization milestone of US$20 mn 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.
The company is exploring all legal options to challenge the award.