Strengthening its oncology innovation portfolio, Dr. Reddy’s Laboratories has entered into an exclusive licensing agreement with Australian biotech Immutep to commercialise its Phase 3-stage immunotherapy candidate, eftilagimod alpha (efti), across select global markets. The deal includes a $20 million upfront payment, with Immutep eligible for up to $349.5 million in regulatory and commercial milestones, taking the total potential value above $370 million (approx. ₹3,200 crore). Immutep will also receive double-digit royalties on commercial sales.

Under the agreement, Dr. Reddy’s gains commercial rights for efti in territories outside North America, Europe, Japan, and Greater China, while Immutep retains rights in these high-value markets as well as full control of global manufacturing. The Australian company will supply efti to Dr. Reddy’s for all licensed regions.

A Late-Stage Immunotherapy with Strong Clinical Promise

Eftilagimod alpha is a first-in-class, soluble LAG-3 fusion protein designed to activate antigen-presenting cells—particularly dendritic cells—to enhance the body’s anti-tumor immune response. The therapy has demonstrated encouraging outcomes across its clinical programs.

Earlier this year, Immutep reported that efti combined with Merck’s Keytruda achieved a median overall survival of 17.6 months as first-line therapy in patients with recurrent or metastatic head and neck squamous cell carcinoma (HNSCC). The candidate is now being evaluated in a Phase 3 trial for advanced or metastatic non-small cell lung cancer (NSCLC) and is also being studied in head and neck cancer, breast cancer, and soft tissue sarcoma.

Efti has received US FDA Fast Track designation for both first-line NSCLC and HNSCC, further strengthening its commercial potential.

Strategic Expansion Beyond Generics

For Dr. Reddy’s, this partnership aligns with its long-term ambition to expand beyond generics into innovative and speciality therapies.

“Efti has the potential to shape a new standard of care when used with pembrolizumab and chemotherapy in first-line NSCLC,” said M.V. Ramana, CEO – Branded Markets (India & Emerging Markets), Dr. Reddy’s Laboratories. “This agreement enables us to leverage our strong market access and oncology expertise to accelerate its development and commercialisation in the licensed territories.”

Immutep Retains Control in Key Markets

Immutep’s CEO, Marc Voigt, emphasised that the collaboration allows the company to unlock value in emerging and secondary markets, while keeping strategic control in major geographies such as the U.S., Europe, Japan, and China.

“This partnership positions us well for future value creation while expanding efti’s global reach,” Voigt noted.

A Targeted Opportunity in PD-L1-Negative Disease

Immutep is particularly focused on carving a niche in PD-L1-negative patient populations, which represent about 20% of first-line HNSCC cases. The company believes that efti+Keytruda regimens could offer a chemo-free immunotherapy-only alternative, addressing a major unmet need, as few competitors are pursuing this segment.

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Implications for the Global Pharma Ecosystem

The collaboration reflects a growing trend of Indian pharma players pursuing innovation-driven growth and deepening their footprint in oncology biologics. For Immutep, the deal provides capital and commercial momentum as its lead asset enters late-stage development across multiple indications.

With its promising mechanism, expanding clinical evidence, and strong regulatory designations, efti represents a high-potential immuno-oncology candidate — and this partnership marks a strategic win for both companies as they move toward addressing critical gaps in cancer care across global markets.

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