Dr. Reddy’s Shares Jump 4% on Biosimilar Deal with Alvotech

In a significant move, Dr. Reddy’s entered a strategic collaboration with Alvotech to co-develop, manufacture, and commercialize a biosimilar of Keytruda (pembrolizumab). This cancer immunotherapy drug is widely used across the globe and has seen massive commercial success.

Keytruda’s global sales hit $29.5 billion in 2024, making it a highly attractive target for biosimilar development. The new partnership is expected to fast-track product development and expand the global footprint of the upcoming biosimilar.

Shared Responsibilities in Development and Marketing

According to the agreement, both Dr. Reddy’s and Alvotech will share responsibilities and costs related to development, manufacturing, and commercialisation. Importantly, both companies will also have marketing rights in global markets, with a few specified exceptions.

This collaborative structure signals a long-term commitment from both players, aiming to tap into the growing demand for affordable cancer treatments globally.

Investor Sentiment Turns Positive

The announcement boosted investor confidence, as it strengthens Dr. Reddy’s presence in the biosimilar segment—a key growth area in global pharmaceuticals. The sharp rise in share price reflects market optimism around the company’s future growth prospects driven by innovation and strategic alliances.

Outlook

With this development, Dr. Reddy’s is positioning itself strongly in the biosimilar oncology space. As the partnership with Alvotech progresses, market watchers will closely monitor regulatory milestones and global commercial rollouts of the Keytruda biosimilar.