Dr Reddy’s Laboratories inks pact with Alvotech; stock gains ~3%

5 Jun 2025 , 11:00 AM

Dr Reddy’s Laboratories’ shares zoomed as much as 3% after the company informed the bourses that it has entered into a collaboration with Iceland-based Alvotech for making cancer treatment drugs.

At around 10.43 AM, Dr Reddy’s Laboratories was trading 2.90% higher at ₹1,288.20 per piece, against the previous close of ₹1,251.90 on NSE. The counter touched an intraday high of ₹1,303.40.

Both the companies will collaborate to co-develop a biosimilar candidate to Keytruda (pembrolizumab) for global markets, stated the company in its filing with the bourses. Merck Sharp & Dohme Corp.

As per the terms agreement, Alvotech and Dr Reddy’s will jointly develop and manufacture the biosimilar candidate and share costs and responsibilities. Each party shall have the right to commercialize the product globally.

The drug can be used for the treatment of numerous cancers.

Pembrolizumab is a monoclonal antibody and immune checkpoint inhibitor. The drug is used for the treatment of various cancers, including lung cancer, melanoma, and Hodgkin Iymphoma. The drug has recorded worldwide sales of $29.50 Billion in 2024.

This development comes just after the company received a setback when the Delhi High Court restricted companies from selling semaglutide, or Ozempic in the domestic market after a patent infringement.

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