- Alvotech (ALVO, Financial) and Dr. Reddy's collaborate to develop a Keytruda biosimilar.
- Keytruda, with $29.5 billion in 2024 sales, represents a significant market opportunity.
- Both companies to share development costs and global commercialization rights.
Alvotech (NASDAQ: ALVO) and Dr. Reddy's Laboratories have officially announced a strategic partnership to co-develop, manufacture, and commercialize a biosimilar version of Keytruda (pembrolizumab), a pivotal cancer treatment medication. This collaboration leverages the expertise of both companies in the biosimilars arena, aiming to accelerate development timelines and enhance global reach capabilities.
As part of their agreement, both Alvotech and Dr. Reddy's will equally share the development costs and manufacturing responsibilities, while retaining global commercialization rights, subject to certain exceptions. This collaboration is strategically positioned to capitalize on a substantial market opportunity, given that Keytruda generated an impressive $29.5 billion in worldwide sales in 2024.
The partnership underscores a commitment to increasing the availability of cost-effective biologic therapies for cancer treatment on a global scale, with oncology being a critical focus area for both companies. This move potentially positions both Alvotech and Dr. Reddy's to navigate the competitive landscape of biosimilar development effectively, bringing more affordable treatment options to patients worldwide as Keytruda's patent protection approaches expiration.
