Hatchtech

About Hatchtech

Hatchtech Pty Ltd is an Australian pharmaceutical company that originated from research conducted at the University of Melbourne. Founded in 2001 by Associate Professor Vern Bowles, the company's inception was rooted in his scientific discoveries related to the vital role of certain enzymes in the development and survival of parasites. Bowles, an expert in parasitology and animal health, identified that metalloproteases are critical for the egg-hatching process in lice, and inhibiting these enzymes could disrupt the parasite's life cycle. This foundational research, initially focused on animal parasites, pivoted to human head lice, leading to the formation of Hatchtech with seed funding from the university-backed venture capital firm, Uniseed.

The company's core business revolves around the development and commercialization of pharmaceutical products for invertebrate pest control. Its flagship product is a prescription topical lotion known as Xeglyze™ (active ingredient abametapir), designed for the treatment of head lice infestation. The primary market for Xeglyze includes individuals, particularly children, suffering from head lice, a condition that affects millions globally each year. The product's key differentiator is its ability to kill both lice and their eggs (nits) in a single 10-minute application, addressing a major drawback of many existing treatments that require repeated applications to be effective. This dual action is achieved because its active ingredient, abametapir, inhibits metalloproteinases essential for egg development and louse survival, a novel mechanism that also lowers the probability of resistance developing.

Hatchtech's business model is centered on research and development, intellectual property creation, and strategic commercialization partnerships. After successfully navigating the extensive drug development process, including Phase II and Phase III clinical trials, the company filed a New Drug Application (NDA) with the U.S. Food and Drug Administration (FDA) in late 2015. In a significant milestone, Hatchtech entered into a major commercialization agreement with Dr. Reddy's Laboratories in September 2015 for Xeglyze. This deal granted Dr. Reddy's exclusive rights to manufacture and market the product in key territories including the USA, Canada, Australia, and India, in a deal valued at up to $279 million, inclusive of upfront, milestone, and sales-based payments. The FDA approved Xeglyze in July 2020 for patients six months of age and older, which triggered a substantial milestone payment to Hatchtech from Dr. Reddy's.