Overview

• Dr. Reddy’s Laboratories and Alvotech announced on June 5 that they will co-develop, manufacture and commercialize a biosimilar version of Merck’s cancer immunotherapy Keytruda.
• The collaboration leverages both companies’ biosimilar R&D and manufacturing platforms to accelerate regulatory approvals and expand global distribution.
• Under the agreement, Dr. Reddy’s and Alvotech will share development costs and production responsibilities while each retains commercialization rights with limited exceptions.
• Keytruda generated $29.5 billion in global sales in 2024 across multiple cancer indications, underscoring the high-value opportunity for a biosimilar alternative.
• Following the announcement, Dr. Reddy’s shares jumped more than 3% and HSBC lifted its target price to Rs 1,445 from Rs 1,235 when upgrading its rating to Buy.