Dr. Reddy’s Laboratories (DRL) on Tuesday said one of its subsidiaries had been asked to pay $46.25 million, under an arbitration award, to Hatchtech Pty Ltd., the Australian firm with whom it had entered into an asset purchase pact in 2015.
Stating that the award was issued by the International Centre for Dispute Resolution, U.S., the pharmaceuticals company said it was exploring all legal options to challenge the award.
The subsidiary had been asked to make the payment towards milestones, interest and fees to Hatchtech in connection with the asset purchase agreement, DRL said in a regulatory filing.
Citing a July 2020 filing on the USFDA approving its New Drug Application pertaining to Xeglyze (abametapir) lotion, 0.74%, the drugmaker said that the approval triggered the contractual pre-commercialisation milestone of $20 million payable to Hatchtech, which had been included in the arbitration award.
Also, the sum had been already accounted for and charged off in the company’s financial statements for 2020-21, Dr. Reddy’s Laboratories said in the filing to the stock exchanges.
