Dr Reddys told to pay around Rs 339 crore to Hatchtech
New Delhi: Dr Reddy's Laboratories on Tuesday said it has been asked to pay USD 46.25 million (around Rs 339 crore) to Australia-based Hatchtech Pty Ltd as part of an asset purchase agreement between the two parties in 2015.
The company is in receipt of an arbitration award issued by the US-based International Center for Dispute Resolution whereby a subsidiary has been asked to pay an amount of USD 46.25 million towards milestones, interest and fees to Hatchtech, the Hyderabad-based drug major said in a regulatory filing.
The company is exploring all legal options to challenge the award, it added.
On July 27, 2020, Dr Reddy''s had announced the receipt of an approval of XEGLYZE under the NDA (new drug application) category from the US Food and Drug Administration (USFDA).
Such approval triggered the contractual pre-commercialisation milestone of USD 20 million payable to Melbourne-headquartered Hatchtech Pty Ltd.