Dr Reddy's signs licensing pact to sell Australian Immutep's cancer drug

Indian drugmaker Dr Reddy's signed an exclusive licensing pact with Australia's Immutep to develop and distribute the latter's cancer therapy, the companies said on Monday.

As part of the agreement, Immutep will receive about $20 million upfront from Dr Reddy's as well as potential regulatory development and commercial milestones payments of up to $349.5 million. Immutep will also get double-digit royalties on commercial sales, the companies added.

The deal will allow Dr Reddy's to distribute eftilagimod alfa in all regions barring North America, Europe, Japan and Greater China.

Over the last few years, Dr Reddy's has diversified its portfolio beyond generics to include cancer therapies as it battles pricing pressures in North America, its largest market.

Immutep's eftilagimod is an immunotherapy, or a category of drugs that direct the body's immune cells to attack cancer more precisely while reducing side effects. The Australian drugmaker aims for the drug to fight non-small cell lung cancer.