Immutep Soars on Global Licensing Deal with Dr. Reddy’s as Investors Pile In

Key Highlights

• Immutep signs a major global licensing and collaboration deal for its lead immunotherapy candidate, Eftilagimod Alfa.
• Dr. Reddy’s to pay USD 20 million upfront, with up to USD 349.5 million in milestone payments and double-digit royalties.
• IMM shares jump 25.49 percent on the ASX as trading volumes skyrocket nearly tenfold.
• Analysts say the deal significantly strengthens Immutep’s commercial position while reducing financial pressure ahead of pivotal trial readouts.

Immutep lands transformational global partnership as investors reward the move

Immutep Ltd (ASX: IMM) delivered one of the ASX healthcare sector’s standout performances on Tuesday, December 9, after announcing a sweeping strategic collaboration with Dr. Reddy’s Laboratories for the development and commercialisation of its lead immunotherapy program, Eftilagimod Alfa (efti).

Shares surged 25.49 percent to 32 cents, marking one of the company’s strongest one-day gains this year. The move came on the back of blockbuster trading volumes topping 21.1 million shares, far above the four-week average of just 2.2 million.

Investors appear to be responding to what is arguably one of Immutep’s most commercially significant announcements in years.

According to the company’s ASX release, Dr. Reddy’s will receive exclusive rights to develop and commercialise efti across all markets outside North America, Europe, Japan and Greater China. In exchange, Immutep will receive an upfront payment of USD 20 million (approximately AUD 30.2 million), with the potential for USD 349.5 million (AUD 528.4 million) in regulatory and commercial milestone payments. The company will also receive double-digit royalties on sales in these licensed markets. 

Importantly, Immutep retains global manufacturing rights and keeps full ownership of efti in key pharmaceutical markets such as the US, Europe and Japan.

Why this deal matters for Immutep

For a late-stage clinical biotech company navigating expensive Phase III trials, the structure of this agreement offers several strategic advantages.

First, the upfront and potential milestone payments strengthen Immutep’s balance sheet at a critical time. Efti is currently being evaluated in TACTI-004 (KEYNOTE-F91), a pivotal Phase III study in first-line non-small cell lung cancer — one of the largest oncology markets globally. The company is also running programs in head and neck cancer, breast cancer and soft tissue sarcoma.

Second, this partnership allows Immutep to offload commercialisation risk in a wide range of markets — particularly emerging markets where Dr. Reddy’s has long-established distribution power — while maintaining access to future upside.

Dr. Reddy’s CEO of Branded Markets (India & Emerging Markets), M. V. Ramana, emphasised the clinical potential of efti, stating:

“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 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.” 

 

Immutep CEO Marc Voigt described the agreement as both validating and value-accretive:

“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.” 

 

For shareholders who have watched the stock drift lower in 2025 (down 12.33 percent year-to-date prior to today’s spike), this is a meaningful shift in sentiment.

Understanding efti: An immune-system activator rather than a blocker

Efti is not another checkpoint inhibitor, and that difference is part of the excitement around it. The therapy is a soluble LAG-3 protein and MHC Class II agonist, meaning it works by activating antigen-presenting cells — a pivotal part of the immune system that helps initiate a strong anti-tumour response.

In simple terms, rather than taking the brakes off immune cells like many existing immunotherapies do, efti turns on the ignition by priming the body to recognise and attack cancer more effectively.

This upstream immune activation has shown promise in earlier trials, especially when combined with pembrolizumab (Keytruda), one of the world's best-selling cancer drugs. The therapy also benefits from a favourable safety profile, which broadens its potential use in combination regimens. 

Given the global momentum in immuno-oncology and the intense focus on LAG-3 pathways over the past few years, efti positions Immutep in a sector with significant long-term investment interest.

A closer look at the stock’s performance

Tuesday’s rally not only reversed recent declines but also pushed IMM sharply above its one-month performance benchmark, with the stock now up 25.49 percent over 30 days.

Other key market metrics highlight the scale of interest:

Market cap: AUD 471.6 million

Shares issued: 1.47 billion

Sector rank: 33 out of 240 ASX healthcare stocks

Daily turnover: AUD 6.83 million (far above normal levels)

Notably, institutional ownership trends this year show substantial activity. JP Morgan and Regal Funds Management have both increased and trimmed positions across various dates — normal behaviour for active managers navigating a volatile biotech landscape.

What does this mean for Immutep’s future?

For a company entering the most expensive and high-risk stage of drug development, this partnership provides:

Financial reinforcement without excessive shareholder dilution

Commercial validation from a major global pharmaceutical company

Risk-sharing in less familiar global markets

Strategic focus on core, high-value territories like the US and Europe

The next major catalysts for investors will come from clinical updates in TACTI-004 and other ongoing programs. With funding pressure partially relieved and a credible commercial partner on board, Immutep enters 2026 in a stronger position.

For now, the market’s reaction signals confidence that this deal could be more than just a licensing announcement — it could be a turning point.