Dr Reddy’s has signed an exclusive licensing deal with Australia’s Immutep to make, develop and distribute the company’s cancer treatment, according to a stock exchange filing on Monday.
The agreement, worth up to almost $350 million, gives Dr Reddy’s the right to distribute eftilagimod alfa, Immutep’s cancer therapy, in all regions except North America, Europe, Japan and Greater China.
Efti is Immutep’s first-in-class immunotherapy that directly activates the immune system to fight cancer. It is being tested in TACTI-004 (KEYNOТЕF91), a Phase III trial for first-line treatment of advanced or metastatic non small cell lung cancer. Efti is also being studied for other uses, including head and neck cancer, breast cancer and soft tissue sarcoma.
Dr Reddy’s shares swung between gains and losses on BSE Sensex in initial trade, before plunging to day’s low of Rs 1267.50 a piece.
Under the licensing deal, Immutep will receive major milestone payments and can retain a large share of future gains in the licensed markets as efti moves towards commercial use. Immutep will also keep global manufacturing rights for the drug and will supply it to Dr Reddy’s in the licensed regions, while keeping full rights in the key markets of North America, Europe and Japan.
As part of the agreement, Immutep will get an upfront payment of $20 million from Dr Reddy’s. It may also receive further regulatory, development and commercial milestone payments of up to $349.5 million, along with double- digit royalties on future sales in these markets, Dr Reddy’s said in exchange filing.
“This collaboration marks our continuous efforts to deliver first-in-class and innovative therapies for cancer treatment. Efti is a novel immunotherapy with the potential to set a new standard of care in combination with pembrolizumab (Keytruda) and chemotherapy as first-line therapy for non small cell lung cancer,” said M.V. Ramana, CEO – Branded Markets (India & Emerging Markets), Dr. Reddy’s.
