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Dr. Reddy's Laboratories shares rise after collaboration with Alvotech to make cancer treatment drugAlvotech and Dr. Reddy's will collaborate to co-develop a biosimilar candidate to Keytruda (pembrolizumab) for global markets, it said in an exchange filing.By Juviraj Anchil  June 5, 2025, 10:19:50 AM IST (Updated)2 Min ReadShares of Hyderabad-based drugmaker Dr. Reddy's Laboratories Ltd. gained on Thursday, June 5, after the company announced that it has entered into a collaboration with Iceland-based Alvotech to make a cancer treatment drug.

Collaboration For Cancer Treatment Drug

Alvotech and Dr. Reddy's will collaborate to co-develop a biosimilar candidate to Keytruda (pembrolizumab) for global markets, it said in an exchange filing.

Keytruda is manufactured and marketed by Merck Sharp & Dohme Corp.

Under the agreement signed between the two companies, Alvotech and Dr. Reddy’s will be jointly responsible for developing and manufacturing the biosimilar candidate and sharing costs and responsibilities. Subject to certain exceptions, each party will have the right to commercialise the product globally.

This drug is used in treating numerous cancers.

Pembrolizumab is a monoclonal antibody and immune checkpoint inhibitor. It is approved for treating various cancers, including lung cancer, melanoma, and Hodgkin lymphoma.

The drug had worldwide sales of $29.5 billion in 2024.

Semaglutide Setback

This development comes just days after the company was handed a setback when the Delhi High Court restrained the companies from selling semaglutide, or Ozempic (as marketed by Novo Nordisk) in the domestic market following a patent infringement plea by Novo Nordisk.

Despite this setback, brokerage firm HSBC upgraded the stock to "buy" from its earlier rating of "hold", stating that a large scale and timely launch of the Semaglutide injection pens in the target markets will be key for Dr. Reddy's to gain market share.

HSBC is projecting Semaglutide sales of $280 million in financial year 2027 for Dr. Reddy's, a number that can go up to $500 million in the best case scenario.

Shares of Dr. Reddy's are currently trading 2.8% higher at ₹1,287. The stock has surged 10% in the last month.

Also Read: A diabetes treatment drug can change Dr. Reddy's fortunes, HSBC says after upgradeContinue Reading(Edited by : Hormaz Fatakia)First Published: Jun 5, 2025 10:17 AM ISTCheck out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsCancercancer drugDr Reddy's LaboratoriesDr Reddy's sharesDr ReddysmedicinePharmashare market today