Dr Reddy's Laboratories, an integrated global pharmaceutical company, today announced the signing of a commercialization deal with Hatchtech, an Australian pharmaceutical company developing an innovative prescription head lice product, Xeglyze Lotion.

The exclusive rights for this product are applicable for the territories of the United States, Canada, India, Russia and the CIS, Australia, New Zealand and Venezuela.

Additionally, Hatchtech will be filing its New Drug Application for Xeglyzew with the US Food and Drug Administration (FDA). The product, on approval will be marketed in the United States by Promius Pharma, a wholly-owned specialty company of Dr. Reddy's Laboratories.

As part of the agreement Dr. Reddy's will pay Hatchtech an upfront amount of USD 10MM, up to USD 50 million based on pre commercialization milestones and an undisclosed amount based on post commercialization milestones, linked to achievement of annual net sales targets.

Shares of the company gained Rs 4.75, or 0.12%, to trade at Rs 4,010.00. The total volume of shares traded was 1,997 at the BSE (10.24 a.m., Monday).