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Dr. Reddy’s and Alvotech Partner to Develop Global Keytruda Biosimilar

HSBC upgraded Dr. Reddy’s to Buy after the stock rose over 3%

Dr. Reddy’s Laboratories shares rise 4%: Two factors fueling the rally today
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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.