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The deal will enable Dr Reddy's to commercialize Hatchtech's head lice product, Xeglyze Lotion, which was previously called as DeOvo.
As part of the agreement, Dr Reddy's will pay Hatchtech an upfront amount of $10 million, up to $50 million based on pre-commercialization milestones, and an undisclosed amount based on post-commercialization milestones, linked to achievement of annual net sales targets, Dr Reddy's told Bombay Stock Exchange (BSE).
Xeglyze is used in for treating head lice infestation experienced by children and their parents.
The rights for this product are applicable for territories including the US, Canada, India, Russia and the CIS, Australia, New Zealand and Venezuela.
Hatchtech also announced that it will be filing its New Drug Application (NDA) for Xeglyze with the US Food and Drug Administration (FDA) today.