Immutep (ASX:IMM) Surges on US$369M Global Partnership With Dr. Reddy’s

Immutep Lands Global Deal With Dr. Reddy’s

Immutep (ASX:IMM) surged 23% at market open after announcing a new strategic partnership through a collaboration and licensing agreement with Dr Reddys Laboratories, a major global pharmaceutical company based in India. Under the deal, Dr Reddys secures exclusive rights to develop and commercialise Efti across all markets outside North America, Europe and China. The structure is straightforward. Immutep receives an upfront US$20M payment, access to milestone payments of up to US$349M, and the potential for double digit royalties on any future sales.

What makes this deal stand out is not just the size of the milestone pool but the quality of the funding. This is non dilutive capital, which is something every biotech hopes for and rarely achieves. Most companies at this stage are still tapping shareholders for equity just to keep programmes moving forward. Immutep now has a partner with global reach, meaningful financial commitment, and clear incentive to advance Efti quickly.

It allows the company to keep progressing clinical work without eroding existing ownership, which is a meaningful win for long term investors while also reducing a major funding overhang.

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The Aussie Biotech Leading the Global Charge in Cancer Immunotherapy

For investors who are not familiar with the company, Immutep is an ASX listed late stage biotech focused on immunotherapy for cancer and autoimmune diseases. The company is recognised globally as a leader in LAG 3 biology, a key pathway that helps regulate the immune system. Its lead asset, Efti, is a first in class soluble protein designed to stimulate the immune system to recognise and attack cancer cells. The mechanism is simple but powerful. Efti activates antigen presenting cells, which then trigger the body’s natural responses for fighting cancer.

Dr. Reddy’s Partnership Gives Immutep Global Reach and Faster Market Access

Dr Reddy’s brings something Immutep could never achieve alone. Its commercial footprint across India, Russia, Latin America, CIS markets, and a range of emerging economies gives Efti access to a broad patient population with far faster on-the-ground execution. This mix of global reach and local expertise is exactly what increases the probability of accelerated approvals and market adoption in regions that are typically underserved.

Immutep holding on to commercial rights in North America, Europe and Japan is also a smart move in our view. These regions account for more than 70% of global oncology drug spending, which means the company keeps exposure to the largest long-term commercial opportunity while still securing meaningful non-dilutive funding today.

Immutep’s Efti Shows 61% Response in Lung Cancer

Recent data from Immutep’s INSIGHT 003 trial showed a 61% objective response rate in lung cancer when combined with chemotherapy. This comfortably outperforms the traditional benchmark of roughly 40% and positions Efti as a genuinely differentiated immunotherapy candidate. The global lung cancer market is valued at around US$32B today and is expected to grow to roughly US$65B by 2034, with immunotherapies set to capture more than 40% of total market share as new approvals and next-generation combinations accelerate adoption. A market expanding this quickly, paired with a partnership that de risks funding through to 2026 without dilution, puts Immutep in a far stronger development position.

The Investors Takeaway for IMM

For shareholders, this deal is clearly a net positive and the re rating on the day is justified. If royalties eventually materialise, investors could reasonably view Immutep as undervalued at current levels. But the risks still matter. A Phase 3 failure would erase most of the company’s value, and regulatory delays in emerging markets can slow the commercial rollout. Even so, the structure of the agreement, with milestones concentrated around major approvals, aligns incentives and could support the expansion of later stage trials.

For long term holders, the partnership strengthens Immutep’s identity as a true LAG 3 pure play, with Efti’s potential 2029 US approval acting as a multi billion turning point. Short term traders will focus on momentum, but the volatility here continues to reward risk-tolerant portfolios looking for asymmetric outcomes.