Hatchtech head lice drug to be commercialised by Dr Reddy's

Multinational pharmaceutical company Dr Reddy’s Laboratories has signed a commercialisation agreement with Melbourne-based company Hatchtech, the developer of prescription head lice product Xeglyze Lotion. The agreement will cover the exclusive rights for Xeglyze Lotion in the territories of the United States, Canada, India, Russia and the CIS, Australia, New Zealand and Venezuela.

The deal will see Dr Reddy’s pay Hatchtech an upfront amount of US$10 million, up to US$50 million based on pre-commercialisation milestones and an undisclosed amount based on post-commercialisation milestones, linked to achievement of annual net sales targets. Hatchtech will retain global rights for non-human applications of Xeglyze Lotion and its active ingredient, abametapir, as well as the right to commercialise the product for human use in territories outside of agreement with Dr Reddy’s.

The result of a collaboration between Hatchtech and the Dr Reddy’s Custom Pharmaceutical Services (CPS) business unit for 10 years, Xeglyze Lotion is a topical formulation containing abametapir, an inhibitor of metalloproteases. It has demonstrated both ovicidal and lousicidal activity, with 81.5% of Phase 3 clinical study participants last year remaining lice-free following the observation period of 14 days after a single 10-minute application.

Hatchtech filed its New Drug Application for Xeglyze with the US Food and Drug Administration (FDA) yesterday. If approved, the product will be marketed in the United States by Promius Pharma, a wholly owned specialty company of Dr Reddy’s Laboratories.

“This is a great outcome, and we are excited by what the sale means for the company and shareholders,” said Hatchtech CEO Hugh Alsop. “Dr Reddy’s will be an outstanding partner for the commercialisation of Xeglyze and this deal builds on an already strong relationship forged during the development of the active drug within the Reddy’s Custom Pharmaceutical Services business.

“Hatchtech will seek additional commercialisation partners in other territories for further human and non-human applications of Xeglyze.”

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