- Hatchtech is the third successful exit for Uniseed since May 2014
- Deal follows recent Uniseed exits of Spinifex in June 2015 (US$700m total deal value) and Fibrotech in May 2014 (US$557m total deal value)
- Hatchtech deal represents potential returns to Uniseed of up to 5x funds invested
Uniseed, a venture fund operating at the Universities of Melbourne, New South Wales and Queensland is pleased to announce the exit of investee company Hatchtech, representing the fund’s third successful exit since May 2014.
Hatchtech, developer of XeglyzeTM Lotion, a next generation lice treatment capable of killing both eggs and lice, today announced it has entered into a commercial agreement with Dr. Reddy’s Laboratories (NYSE: RDY) which will include upfront and pre-commercialisation payments plus additional milestone payments on commercial sales.
The terms of the Hatchtech deal will see Uniseed receive total potential returns on Uniseed’s $2.8 million investment of up to 5x funds invested.
Uniseed was the sole participant in Hatchtech’s first investment round in 2001 with a $488,000 investment, and has invested in every major funding round since. From 2001 to 2005, Uniseed supported Hatchtech alone and providing strategic guidance on the company’s scientific and commercial development program. Uniseed played an instrumental role in shifting Hatchtech’s initial application from animal health, to the treatment of human head lice.
From 2005 to 2009, Uniseed assisted Hatchtech in securing additional investment from other venture capital firms including GBS Ventures, QIC Bioventures and Biocomm, with the University Melbourne also investing from their endowment fund. Subsequent investors in Hatchtech’s development included OneVentures in 2010, and Blue Sky Venture Capital in 2013.
Uniseed Chief Executive Officer, Peter Devine, said: “On behalf of Uniseed, I am delighted to announce the news of Hatchtech’s deal with Dr. Reddy’s. This outcome further validates the Uniseed business model of investing in very early stage technologies, and highlights the insightful and long- term vision of the Universities of Melbourne, Queensland and NSW in setting up the Uniseed fund to seed the commercialisation of inventions from partner universities”.
“We are proud to have supported Hatchtech from its inception at the University of Melbourne, and we applaud the important work of the Company’s founder Professor Vern Bowles in addressing a major communicable condition in humans with such a novel and effective treatment”.
“To date, Uniseed has exited four investments through trade sales; most recently Spinifex, a drug for the treatment of neuropathic pain, Fibrotech, a drug in development to treat kidney disease, as well as Vintela, an IT security technology and Fultec, a semi-conductor technology”.
Hatchtech’s technology was developed by Professor Vern Bowles at the University of Melbourne, where he is Deputy Director of the Centre for Animal Biotechnology. Professor Bowles founded Hatchtech and has been responsible for Hatchtech’s scientific program since the company’s inception 15 years ago.
In September 2014, Hatchtech announced positive results from its two pivotal Phase 3 clinical studies evaluating Xeglyze™ Lotion as a potential treatment for head lice infestation. The studies involved 704 people across 14 clinical trial sites in the US and resulted in 81.5% of the participants remaining lice free following the observation period of 14 days after a single 10 minute application. In October 2014, Hatchtech also announced the successful completion of a Phase 2 clinical trial evaluating the ovicidal efficacy (ability to kill lice eggs).
About Hatchtech
Hatchtech Pty Ltd is an Australian specialty pharmaceutical product company developing technology for the control of invertebrate pests. The Company’s lead product is Xeglyze™, a class-leading head lice control agent that aims to overcome the frustrating, costly and inconvenient cycles of re-treatment experienced currently by children and their parents. The Company’s investors include, GBS Venture Partners, Queensland Biotechnology Fund, Uniseed, University of Melbourne Endowment Trust, Blue Sky Alternative Investments, Australian Super, and OneVentures Innovation Fund. The OneVentures Innovation Fund is supported by the Australian Government through the IIF program.
About Uniseed
Uniseed is a venture fund operating at the Universities of Melbourne, Queensland and New South Wales, with investment capital provided by the three universities and AustralianSuper, a leading industry superannuation fund. Uniseed’s mandate is to facilitate the commercialisation of university -generated intellectual property by targeted investment in highly promising technologies. Uniseed’s investments cover a range of technology sectors. To date, the fund has exited four investments through trade sales; a drug to treat nerve pain (Spinifex Pharmaceuticals acquisition by Novartis for US$200M up-front plus milestone payments); a drug in development to treat fibrosis (Fibrotech Therapeutics sale to Shire plc for US$75M up-front plus milestone payments), an IT security technology (Vintela sale to Quest Software Inc. for US$75M) and a semi-conductor technology (Fultec sale to Bourns Semiconductor Inc). Uniseed’s biotechnology portfolio is maturing, with a number of companies in clinical development. Other companies have products on the market (Hydrexia, ProGel, BT Imaging, Smart Sparrow) or are collaborating with leading global companies in their respective fields. For more information, go to www.uniseed.com.
About Dr. Reddy’s
Dr. Reddy’s Laboratories Ltd. is an integrated pharmaceutical company, committed to accelerating access to affordable and innovative medicines, because it believes Good Health Can’t Wait. Through its three businesses.
Pharmaceutical Services & Active Ingredients , Global Generics and Proprietary Products – the company offers a portfolio of products and services that include active pharmaceutical ingredients, (APIs), custom pharmaceutical services, generics, biosimilars and differentiated formulations. With operations in 26 countries across the globe, the major therapeutic areas of Dr. Reddy’s are gastro-intestinal, cardiovascular, diabetology, oncology, pain management and antiinfectives. For more information, log on to: www.drreddys.com
For more information:
Uniseed
Peter Devine
(07) 3365-3754 / 0409 631 581 p.devine@uniseed.com