Immutep and Dr. Reddy’s enters into Strategic Collaboration for Commercialisation of an Innovative Oncology Drug, Eftilagimod Alfa
Rhea-AI Summary
Immutep (ASX: IMM; NASDAQ: IMMP) and Dr. Reddy’s entered an exclusive licensing and collaboration for eftilagimod alfa (efti) in all countries outside North America, Europe, Japan, and Greater China, announced 8 December 2025. Immutep will receive an upfront payment of USD 20 million, is eligible for up to USD 349.5 million in regulatory and commercial milestones, and will receive double-digit royalties on sales in the licensed markets. Immutep retains rights in key markets (North America, Europe, Japan), holds global manufacturing rights, and will supply product to Dr. Reddy’s as efti advances in a registrational Phase III NSCLC trial (TACTI-004/KEYNOTE-F91).
Positive
- Upfront cash of USD 20 million
- Potential USD 349.5 million in milestones
- Eligible for double-digit royalties on commercial sales
- Retains rights in North America, Europe, Japan
- Holds global manufacturing rights and supplier role
Negative
- Exclusive license excludes major pharma markets (NA, EU, Japan, Greater China)
- Milestone payments are contingent on regulatory/commercial events
- Commercial success depends on Dr. Reddy’s execution in licensed markets
News Market Reaction
On the day this news was published, IMMP gained 26.11%, reflecting a significant positive market reaction. Argus tracked a peak move of +65.1% during that session. Our momentum scanner triggered 57 alerts that day, indicating high trading interest and price volatility. This price movement added approximately $107M to the company's valuation, bringing the market cap to $516M at that time. Trading volume was exceptionally heavy at 85.1x the daily average, suggesting very strong buying interest.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
Peers show mixed moves, with names like CADL up 2.3% while others such as ACIU and HUMA are down 5.08% and 4.65%, respectively, pointing to stock-specific rather than sector-driven dynamics for IMMP.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 02 | Clinical data update | Positive | -7.1% | Phase II AIPAC-003 breast cancer data showing strong responses and immune activation. |
| Nov 13 | Clinical trial results | Positive | +2.8% | EFTISARC-NEO Phase II soft tissue sarcoma data meeting primary endpoint with strong fibrosis. |
| Nov 03 | Tax incentive inflow | Positive | -3.2% | Receipt of €2.59M (≈ A$4.57M) French R&D tax incentive supporting development. |
| Oct 29 | Quarterly update | Positive | -1.0% | Q1 FY26 report with TACTI-004 enrollment progress and cash of A$109.85M to end CY2026. |
| Oct 20 | Clinical trial milestone | Positive | -1.4% | EFTISARC-NEO Phase II neoadjuvant efti combo met primary endpoint with strong tumor response. |
Recent positive clinical and funding updates have often been followed by negative price reactions, suggesting a pattern of selling into good news, with only one of the last five events showing aligned positive movement.
Over the last few months, Immutep has reported multiple positive updates centered on eftilagimod alfa, including Phase II data in soft tissue sarcoma and metastatic breast cancer, tax incentive inflows, and a quarterly update noting A$109.85M in cash and term deposits supporting operations into end of CY2026. Despite generally constructive news, four of the last five events saw negative 24-hour price reactions, highlighting a tendency for the stock to trade weakly after seemingly favorable announcements.
Market Pulse Summary
The stock surged +26.1% in the session following this news. A strong positive reaction aligns with the sizeable upfront and milestone economics in this deal, including USD 20 million cash now and up to USD 349.5 million in potential milestones plus royalties. Historically, Immutep’s stock often traded weakly after good news, so a pronounced upside move on this collaboration could mark a shift versus prior patterns, though investors would still need to monitor future execution and trial progress on efti.
Key Terms
immunotherapy medical
non-small cell lung cancer medical
metastatic medical
Phase III medical
AI-generated analysis. Not financial advice.
- Dr. Reddy’s receives exclusive rights to develop and commercialise Eftilagimod Alfa in all countries outside North America, Europe, Japan, and Greater China
- Under the terms, Immutep to receive upfront payment of USD 20 million (~AUD 30.2 million) and is also eligible to receive potential regulatory development and commercial milestone payments of up to USD 349.5 million (~AUD 528.4 million), plus double-digit royalties on commercial sales
Sydney, Australia/Hyderabad, India, Dec. 08, 2025 (GLOBE NEWSWIRE) -- Immutep Limited (ASX: IMM; NASDAQ: IMMP) (“Immutep” or “the Company”), a late-stage immunotherapy company targeting cancer and autoimmune diseases and Dr. Reddy’s Laboratories Ltd., (BSE: 500124 | NSE: DRREDDY | NYSE: RDY | NSEIFSC: DRREDDY, and along with its subsidiaries, hereafter referred to as “Dr. Reddy’s”), today announced that their respective wholly-owned subsidiaries, Immutep SAS and Dr. Reddy’s Laboratories SA, have entered into a strategic collaboration and exclusive licensing agreement for the development and commercialisation of Eftilagimod Alfa (efti) in all countries outside North America, Europe, Japan, and Greater China.
Efti is Immutep’s first-in-class novel immunotherapy that directly activates the immune system to fight cancer, which is under evaluation in TACTI-004 (KEYNOTE-F91), a registrational Phase III trial for the first-line therapy of advanced or metastatic non-small cell lung cancer. Efti is also being investigated in other indications including head & neck cancer, breast cancer, and soft tissue sarcoma.
The terms of the licensing agreement provide Immutep with significant milestones and preserves its ability to capture material future upside in the licensed markets as efti advances commercially. Further, Immutep holds the global manufacturing rights to the product across all markets and will supply the product to Dr. Reddy’s in the licensed markets, while Immutep retains all rights to the product in the key pharmaceutical markets, including North America, Europe, and Japan.
Additionally, as per the agreement, Immutep will receive from Dr. Reddy’s an upfront payment of USD 20 million (~AUD 30.2 million). It is also eligible to receive potential regulatory development and commercial milestone payments of up to USD 349.5 million (~AUD 528.4 million), plus double-digit royalties on commercial sales in these markets.
“This collaboration marks our continuous efforts to deliver first-in-class and innovative therapies for cancer treatment. Efti is a novel immunotherapy with the potential to set a new standard of care in combination with pembrolizumab (Keytruda®) and chemotherapy as first-line therapy for non-small cell lung cancer. Its broad potential extends to other major cancers across multiple stages of disease. Through this agreement, we look forward to leveraging our expertise and strong market access to advance the development and commercialization of this promising cancer therapy in the licensed markets,” stated M.V. Ramana, CEO – Branded Markets (India & Emerging Markets), Dr. Reddy’s.
“This agreement with Dr. Reddy’s marks a significant milestone for Immutep and further validates the potential of efti. Dr. Reddy’s proven capabilities and reach in the licensed markets make them an ideal partner to maximise the impact of our innovation and serve a large number of patients across the globe. Additionally, this partnership allows us to capture significant value for efti in the licensed markets, while retaining full rights in key markets such as North America, Europe, and Japan, and ensures we remain very well-positioned for future value creation,” said Marc Voigt, CEO of Immutep.
About Eftilagimod Alfa (Efti):
Efti is a first-in-class soluble LAG-3 protein and MHC Class II agonist delivered subcutaneously that uniquely activates antigen-presenting cells or APCs (e.g., dendritic cells, monocytes) via major histocompatibility complex (MHC) class II ligands. As an MHC Class II agonist, its activation of APCs engages the adaptive and innate immune system to initiate a broad anti-cancer immune response. This includes priming and activating cytotoxic T cells as well as generating important co-stimulatory signals & cytokines that further boost the immune system’s ability to combat cancer.
Efti is under evaluation for a variety of solid tumours including non-small cell lung cancer (NSCLC) in a pivotal Phase III trial called TACTI-004 (KEYNOTE-F91), as well as head and neck squamous cell carcinoma (HNSCC), soft tissue sarcoma, and breast cancer. Its favourable safety profile enables various combinations like with anti-PD-[L]1 immunotherapy, radiotherapy, and/or chemotherapy. This has been demonstrated across early-stage trials in NSCLC and HNSCC, which have laid the foundation for the larger randomized clinical trial in NSCLC. Efti has received Fast Track designation in first line HNSCC and in first line NSCLC from the United States Food and Drug Administration (FDA).
About Dr. Reddy’s:
Dr. Reddy’s Laboratories Ltd. (BSE: 500124, NSE: DRREDDY, NYSE: RDY, NSEIFSC: DRREDDY) is a global pharmaceutical company headquartered in Hyderabad, India. Established in 1984, we are committed to providing access to affordable and innovative medicines. Driven by our purpose of ‘Good Health Can’t Wait’, Dr. Reddy’s offers a portfolio of products and services including APIs, generics, branded generics, biosimilars, innovative drugs, and OTC. Our major therapeutic areas of focus are oncology, gastroenterology, cardiology, diabetology, pain management and dermatology. Our major markets include – USA, India, Russia & CIS countries, China, Brazil, and Europe. As a company with a history of deep science that has led to several industry firsts, Dr. Reddy’s continues to plan and invest in businesses of the future. As an early adopter of sustainability and ESG actions, we released our first Sustainability Report in 2004. Our current ESG goals aim to set the bar high in environmental stewardship; access and affordability for patients; diversity; and governance. For more information, log on to: www.drreddys.com
About Immutep:
Immutep is a late-stage biotechnology company developing novel immunotherapies for cancer and autoimmune disease. The Company is a pioneer in the understanding and advancement of therapeutics related to Lymphocyte Activation Gene-3 (LAG-3), and its diversified product portfolio harnesses LAG-3’s ability to stimulate or suppress the immune response. Immutep is dedicated to leveraging its expertise to bring innovative treatment options to patients in need and to maximise value for shareholders. For more information, please visit www.immutep.com.
KEYTRUDA® is a registered trademark of Merck Sharp & Dohme LLC, a subsidiary of Merck & Co., Inc., Rahway, NJ, USA.
Immutep Contacts:
Australian Investors/Media:
Eleanor Pearson, Sodali & Co.
+61 2 9066 4071; eleanor.pearson@sodali.com
U.S. Investors/Media:
Chris Basta, VP, Investor Relations and Corporate Communications
+1 (631) 318 4000; chris.basta@immutep.com
Dr. Reddy’s Contacts:
| Media Relations: Priya K priyak@drreddys.com | Investors Relations: Aishwarya Sitharam aishwaryasitharam@drreddys.com |
FAQ
What did Immutep and Dr. Reddy’s announce on December 8, 2025 about IMMP?
How much upfront and milestone payments will Immutep receive from Dr. Reddy’s for IMMP?
What royalty terms did Immutep secure in the Dr. Reddy’s collaboration for IMMP?
Which markets does Immutep retain full rights to efti after the Dr. Reddy’s deal for IMMP?
What development stage is efti in as mentioned in the IMMP announcement?
Will Immutep manufacture efti for Dr. Reddy’s under the IMMP agreement?
