The S&P/ASX 300 Index (ASX: XKO) is down 0.3% today despite the best efforts of this rocketing ASX 300 healthcare share.
The surging stock in question is clinical-stage biotech company Immutep Ltd (ASX: IMM).
Immutep shares closed yesterday trading for 25.5 cents. In early morning trade on Tuesday, shares are changing hands for 32.5 cents apiece, up 27.5%.
This outperformance follows news of a new strategic collaboration.
Here's what's happening.
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ASX 300 healthcare share surges on global expansion potential
Investors are piling into Immutep shares today after the ASX 300 healthcare share reported that it has entered into a strategic collaboration and exclusive licensing agreement with an Indian-based global pharmaceutical company, Dr. Reddy's.
The agreement is for the development and commercialisation of Immutep's Eftilagimod Alfa (efti) cancer treatment in all countries outside North America, Europe, Japan, and Greater China.
The ASX 300 healthcare share will retain its rights on efti in those markets. Immutep also retains all its global manufacturing rights for efti across all markets. The company will supply the product to Dr. Reddy's in the licensed markets.
Immutep describes efti as 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.
The company highlighted that efti is also being investigated in other indications, including head and neck cancer, breast cancer, and soft tissue sarcoma.
Under the agreement with Dr. Reddy's, Immutep will receive an upfront payment of US$20 million (AU$30.2 million). The company said it may also receive potential regulatory development and commercial milestone payments of up to US$349.5 million, as well as double-digit royalties on commercial sales in these markets.
What did management say?
Commenting on the collaboration sending the ASX 300 healthcare share rocketing today, Immutep CEO Marc Voigt said, "This agreement with Dr. Reddy's marks a significant milestone for Immutep and further validates the potential of efti."
Voigt continued:
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.
M.V. Ramana, CEO Branded Markets Dr. Reddy's, noted, "This collaboration marks our continuous efforts to deliver first-in-class and innovative therapies for cancer treatment."
Ramana added:
Through this agreement, we look forward to leveraging our expertise and strong market access to advance the development and commercialisation of this promising cancer therapy in the licensed markets.
