Press Release
Awaiting price reaction for this filing.
Dr. Reddy's has signed a collaboration and license agreement with Iceland-based biotech Alvotech to co-develop, manufacture, and commercialize a biosimilar version of Keytruda® (pembrolizumab), Merck's blockbuster immuno-oncology drug. Keytruda recorded worldwide sales of US$29.5 billion in 2024, making it one of the highest-selling drugs globally. Under the deal, both companies will share development, manufacturing costs, and responsibilities, with each having rights to commercialize the product globally (subject to certain exceptions). The collaboration strengthens Dr. Reddy's oncology biosimilars pipeline and leverages Alvotech's dedicated biosimilars R&D and manufacturing platform. This is a development-stage agreement — the product is not yet approved or commercialized and timeline for launch is not disclosed.
Positive for long-term growth narrative — tapping into a multi-billion-dollar opportunity via a cost-shared partnership reduces financial risk while expanding Dr. Reddy's global biosimilars footprint. Near-term stock impact likely limited as the product is years away from commercialization and subject to clinical and regulatory risks.