Dr. Reddy’s Partners With Immutep For Cancer Drug Development And Commercialisation
Dr. Reddy’s Laboratories Ltd. has entered into a pact with a late-stage immunotherapy company, Immutep Ltd., for the development and commercialisation of a cancer medication.
Dr. Reddy’s arm, Dr Reddy’s Laboratories SA, along with Immutep Ltd.’s arm, Immutep SAS, have strategically collaborated and signed an exclusive licence agreement for the development and commercialisation of Eftilagimod Alfa.
About Eftilagimod Alfa
Eftilagimod Alfa is Immutep’s first-in-class novel immunotherapy that directly activates the immune system to fight cancer, which is under evaluation for the first-line therapy of advanced or metastatic non-small cell lung cancer.
It is also being investigated in other indications, including head and neck cancer, breast cancer, and soft tissue sarcoma.
Terms Of The Agreement
The agreement is valid in all countries outside North America, Europe, Japan, and Greater China, as per a joint statement by both the firms.
The terms of the licencing agreement provide Immutep with significant milestones and preserve its ability to capture material future upside in the licenced markets as Efti advances commercially.
Further, it holds the global manufacturing rights to the product across all markets and will supply the product to Dr Reddy’s in the licenced markets.
It retains all rights to the product in the key pharmaceutical markets, including North America, Europe, and Japan.
Financial Terms
Additionally, as per the agreement, Immutep will receive an upfront payment of $20 million from Dr Reddy’s.
It is also eligible to receive potential regulatory development and commercial milestone payments of up to $349.5 million, plus double-digit royalties on commercial sales in these markets.
Quotes From Key Executives
‘Through this agreement, we look forward to leveraging our expertise and strong market access to advance the development and commercialisation of this promising cancer therapy in the licensed markets,’ MV Ramana, CEO-branded markets (India & Emerging Markets) at Dr Reddy’s, said.
‘Dr Reddy’s proven capabilities and reach in the licenced markets make them an ideal partner to maximise the impact of our innovation and serve a large number of patients across the globe,’ Immutep CEO Marc Voigt said.
‘Additionally, this partnership allows us to capture significant value for Efti in the licenced markets, while retaining full rights in key markets such as North America, Europe, and Japan, and ensures we remain very well-positioned for future value creation,’ he added.
Impact On The Indian Stock Market
Shares of Dr Reddy’s closed 0.68% lower at Rs 1,266.50 apiece on the NSE, compared to a 0.86% decline in the benchmark Nifty.
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To learn more about Dr. Reddy’s and its operations, check out our article on Dr. Reddy’s Laboratories Ltd.
For updates on the pharmaceutical sector, read our post on pharmaceutical sector in India.