Biotechnology company Alvotech SA (NASDAQ:ALVO) and Indian pharmaceutical company Dr. Reddy's Laboratories Ltd. (BSE:500124, NSE:DRREDDY, NYSE:RDY, NSEIFSC:DRREDDY) announced on Thursday that they have entered into a collaboration and license agreement to co-develop, manufacture, and commercialise a biosimilar candidate to pembrolizumab for global markets.

Pembrolizumab, marketed under the brand name Keytruda, generated worldwide sales of USD29.5bn in 2024 and is indicated for the treatment of multiple cancers.

Under the agreement, both companies will share development and manufacturing responsibilities, along with associated costs. Subject to certain exceptions, both parties will have commercialisation rights worldwide.

The collaboration leverages Alvotech's R&D and manufacturing platform and Dr. Reddy's established biosimilar expertise, aiming to strengthen both companies' positions in the immuno-oncology sector while addressing the growing global demand for cost-effective therapies.