Dr Reddy's, Immutep Ink Licensing Pact for Cancer Drug

Dr Reddy's Laboratories and Immutep Ltd, a late-stage immunotherapy company targeting cancer and autoimmune disease, on Monday entered into a licensing pact for the development and commercialisation of a cancer medication.

Subsidiaries of two companies, Immutep SAS and Dr Reddy's Laboratories SA, have entered into a strategic collaboration and exclusive licensing agreement for the development and commercialisation of Eftilagimod Alfa (Efti) in all countries outside North America, Europe, Japan, and Greater China, the drug firms said in a joint statement.

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 licensing agreement provide Immutep with significant milestones and preserve its ability to capture material future upside in the licensed 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 licensed 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," Dr Reddy's CEO - Branded Markets (India & Emerging Markets) MV Ramana said.

Dr Reddy's proven capabilities and reach in the licensed markets make them an ideal partner to maximise the impact of our innovation and serve a large number of patients across the globe, Marc Voigt, CEO of Immutep, said.

"Additionally, this partnership allows us to capture significant value for Efti in the licensed 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 were trading 0.8% down at ₹1,264.80 apiece on the BSE.