Shares of Dr Reddy’s Laboratories Ltd ended flat on 8th December, even as the company announced that it has entered into a strategic collaboration and exclusive licensing agreement with Immutep SAS to develop and commercialise Eftilagimod Alfa (efti) across multiple global markets.

Dr Reddy’s will get exclusive rights to Efti in all markets outside North America, Europe, Japan and Greater China. Immutep will receive a $20-million upfront payment. Additionally, they could earn up to $349.5 million in regulatory and commercial milestones, along with double-digit royalties.

Efti, Immutep’s lead immunotherapy candidate, is in a Phase III trial for first-line treatment of advanced or metastatic non-small cell lung cancer. It is also being tested for head and neck cancer. Moreover, it is being tested for breast cancer and soft tissue sarcoma.

M.V. Ramana, CEO – Branded Markets (India & Emerging Markets) at Dr Reddy’s, said the partnership reflects the company’s focus on advancing innovative cancer therapies. He noted that Efti has the potential to set a new standard of care.

Immutep CEO Marc Voigt called the agreement a significant milestone. He said Dr Reddy’s reach makes it an ideal partner to expand efti’s impact.

Immutep will retain global manufacturing rights and will supply Efti to Dr Reddy’s in licensed markets. They will keep rights in the US, Europe and Japan.

At 3:30 PM, shares of Dr Reddy’s Labs ended 0.72% lower at Rs 1,266 on NSE.