- Dr Reddys partners with Immutep for cancer drug Eftilagimod Alfa development outside select markets
- The agreement excludes North America, Europe, Japan, and Greater China regions
- Immutep retains rights in key markets and will manufacture the drug globally
Dr Reddy's Laboratories Ltd. has entered into a pact on Monday with a late-stage immunotherapy company that targets cancer and autoimmune disease 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.
The agreement is valid in all countries outside North America, Europe, Japan, and Greater China, as per a joint statement by both the firms.
Efti 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.
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. 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.
"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.
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.
(With PTI Inputs)
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