Dr. Reddy's Laboratories (NSE:DRREDDY, BOM:500124) has entered into a collaboration and license agreement with biotech company Alvotech to codevelop, manufacture, and commercialize a biosimilar candidate to Keytruda (pembrolizumab) for global markets, according to a Wednesday filing to the Indian stock exchanges.

Keytruda is used to treat a number of cancer types.

Under the pact, both companies will be jointly responsible for developing and manufacturing the biosimilar candidate and sharing costs and responsibilities. The parties will have the right to commercialize the product globally.

In 2024, worldwide sales of Keytruda were estimated at $29.5 billion.

The company's shares were up nearly 3% in recent trade.