Collaboration For Cancer Treatment Drug
Alvotech and Dr. Reddy’s will collaborate to co-develop a biosimilar candidate to Keytruda (pembrolizumab) for global markets, it said in an exchange filing.
Keytruda is manufactured and marketed by Merck Sharp & Dohme Corp.
Under the agreement signed between the two companies, Alvotech and Dr. Reddy’s will be jointly responsible for developing and manufacturing the biosimilar candidate and sharing costs and responsibilities. Subject to certain exceptions, each party will have the right to commercialise the product globally.
This drug is used in treating numerous cancers.
Pembrolizumab is a monoclonal antibody and immune checkpoint inhibitor. It is approved for treating various cancers, including lung cancer, melanoma, and Hodgkin lymphoma.
The drug had worldwide sales of $29.5 billion in 2024.
Semaglutide Setback
This development comes just days after the company was handed a setback when the Delhi High Court restrained the companies from selling semaglutide, or Ozempic (as marketed by Novo Nordisk) in the domestic market following a patent infringement plea by Novo Nordisk.
Despite this setback, brokerage firm HSBC upgraded the stock to “buy” from its earlier rating of “hold”, stating that a large scale and timely launch of the Semaglutide injection pens in the target markets will be key for Dr. Reddy’s to gain market share.
HSBC is projecting Semaglutide sales of $280 million in financial year 2027 for Dr. Reddy’s, a number that can go up to $500 million in the best case scenario.
Shares of Dr. Reddy’s are currently trading 2.8% higher at ₹1,287. The stock has surged 10% in the last month.
Also Read: A diabetes treatment drug can change Dr. Reddy’s fortunes, HSBC says after upgrade
(Edited by : Hormaz Fatakia)
First Published:Â Jun 5, 2025 10:17 AM IST
