Dr. Reddy’s (RDY) has signed a huge deal to commercialize head lice lotion Xeglyze in several countries.
Dr. Reddy’s signed a deal with Hatchtech, the company developing Xeglyze, that allows it rights to the lotion in the United States, Canada, India, Russia, the CIS, Australia, New Zealand and Venezuela. The deal costs RDY $10 million with a possible $50 million based on pre commercialization milestones and more for post commercialization milestones.
Xeglyze is a prescription head lice lotion that has passed its Phase 3 clinical trials. The trials resulted in it being effective at removing head lice roughly 81% of the time in 704 patients. Dr. Reddy’s Promius Pharma will handle marketing of the lotion after it obtains approval from the US Food and Drug Administration.
Xeglyze could be a good deal for Dr. Reddy’s. Trials showed that it was able to remove head lice after only a single application. This goes beyond other treatments, which typically require two treatments within seven to 10 days of each other to remove head lice.