Dr. Reddy’s inks $67-million deal to commercialise Alvotech’s biosimilar denosumab in key markets 

Dr. Reddy’s signs $67 million deal to commercialize Alvotech’s biosimilar AVT03 in key global markets, including the U.S.

Dr. Reddy’s Laboratories has signed an in-licensing deal involving upto $67 million in payments to commercialise Iceland-headquartered biosimilar medicine maker Alvotech’s biosimilar candidate AVT03 (denosumab) in key global markets, including the U.S.

A human monoclonal antibody AVT03 is a biosimilar candidate to Amgen Inc.’s Prolia and Xgeva, which are both denosumab but in different presentations and used in treatment of various diseases, including osteoporosis in postmenopausal women and prevention of skeletal-related events in adults with advanced malignancies.

Under the agreement, Dr. Reddy’s through a Swiss subsidiary will get exclusive rights for commercialisation of the product in the U.S. and semi-exclusive rights for Europe and the U.K., in exchange of upfront and development regulatory milestones of $38 million. Additionally, there will be certain success based commercial milestones payment upto $29 million payable to the Nasdaq-listed Alvotech, which will develop and manufacture the product.

The collaboration combines Dr. Reddy’s global commercial presence with Alvotech’s proven capabilities in developing biosimilars for markets worldwide, the firms said in a release on Tuesday.

Dr. Reddy’s said considering the expected commercialisation time frame, the agreement is expected to contribute to the revenue from FY2026 onwards. Also, the infrastructure that gets established for commercialisation of the product would be leveraged for in-house pipeline of biosimilar products in both the U.S. and Europe.

“This strategic collaboration augments our growing portfolio of biosimilar offerings, and progresses our biosimilar journey further into the highly regulated markets,” CEO Erez Israeli said.

Biosimilars have come to play an increasingly important role in global healthcare systems, offering broader access to best-in-class therapies. “Combining our resources will ensure patients globally can be better served,” Chairman and CEO of Alvotech Robert Wessman said.