Algorae Pharmaceuticals (ASX: 1AI) – First Oncology Commercial Deal in ANZ
- Noel Ong
- 3 days ago
- 5 min read
Announcement
Algorae Pharmaceuticals Ltd (ASX: 1AI) takes a step towards establishing a commercial presence in the Australian and New Zealand markets. The Company has entered into an exclusive licensing agreement with global pharmaceutical manufacturer Sakar Healthcare Limited (NSE: SAKAR, BSE: 538377) (Figure 1) to launch five oncology medicines across the region.
Figure 1: Sakar Healthcare (source: Sakar Healthcare)
This move strengthens Algorae’s position as an AI-enabled pharmaceutical company and complements its research and development initiatives, including the ongoing high-throughput validation program at the Peter MacCallum Cancer Centre (Figure 2).
Figure 2: Peter MacCallum Cancer Centre, Australia’s leading cancer treatment, education and research institute. (source: Victorian Comprehensive Cancer Centre)
Key Highlights - Beginning the Oncology Business.
Exclusive Commercial Licensing Agreement – Algorae secures rights to launch five oncology medicines into the Australian and New Zealand markets.
Addressable Market – The combined annual market opportunity for these products is estimated at ~A$10 million.
Regulatory Pathway Underway – Algorae has commenced planning for TGA registration to enable timely commercialisation.
Strategic R&D Complement – The deal aligns with the ongoing 21 oncology drug target validation program at Peter MacCallum Cancer Centre, with results expected in Q4 2025.
Building a Commercial Presence
This agreement represents Algorae’s first commercial deal in the region and provides an immediate pathway to revenue generation. By partnering with Sakar, a globally recognised manufacturer with EU-GMP and WHO-GMP certified facilities, Algorae strengthens its ability to deliver high-quality oncology medicines.
Algorae’s on-site due diligence in Ahmedabad, Gujarat, India, confirmed Sakar’s production capacity, quality systems, and regulatory compliance. The partnership is designed to enhance patient access to trusted therapies while positioning Algorae for long-term growth.
Management Commentary
Algorae Chairman, Mr David Hainsworth, stated:
“Our licensing agreement with Sakar is a significant milestone as Algorae expands its commercial footprint, enhances patient access to trusted therapies, and positions the Company for long-term growth. This partnership allows us to leverage Sakar’s established manufacturing capabilities, and we are delighted to be working alongside Mr Sanjay Shah and his team.”
Algorae Chief Commercial Officer, Mr Vishal Shah, commented:
“The Sakar license agreement represents Algorae’s first commercial deal for the Australian and New Zealand markets with six key generic oncology medicines. These products will be marketed under the Algorae brand, and we are delighted to partner with Sakar on this exciting commercial opportunity that strengthens both companies’ growth ambitions.”
Sakar Managing Director, Mr Sanjay S. Shah, stated:
“We are pleased to partner with Algorae Pharmaceuticals in a licensing agreement for the Australian and New Zealand markets. This collaboration combines Sakar’s proven manufacturing expertise with Algorae’s commercial focus, supporting greater access to high-quality oncology medicines in the region.
About Sakar Healthcare
Founded in 2004 and headquartered in Ahmedabad, India, Sakar Healthcare is a vertically integrated pharmaceutical group with a strong focus on oncology. The company manufactures APIs and finished dosage forms, including sterile injectables, oral liquids, tablets, and emerging dosage forms, and exports to more than 60 countries across Europe, Asia, Africa, and Latin America.
About Algorae Pharmaceuticals
Algorae Pharmaceuticals (ASX: 1AI) is an AI-enabled drug discovery company pioneering the identification of synergistic drug combinations to address unmet medical needs. Its proprietary platform, AlgoraeOS, uses machine learning and deep neural networks to generate fixed-dose combination (FDC) drug candidates, leveraging existing clinical and scientific data to accelerate development and reduce costs (Figure 3).
Figure 3: AlgoraeOS (source: 1AI)
By combining commercialisation opportunities with a growing pipeline of AI-predicted therapies, Algorae is positioning itself as a key player at the intersection of AI and biopharma innovation.
Samso Concluding Comments
This announcement is a step forward for Algorae, shifting it from a purely R&D-driven narrative to one with a near-term commercial pathway. The partnership with Sakar provides credibility, manufacturing strength, and a tangible route to revenue.
The most interesting aspect for investors is the dual-track approach: while commercialisation of generic oncology medicines provides cash flow potential, the AI-enabled oncology drug discovery pipeline could unlock higher-value, differentiated opportunities over time.
This deal effectively de-risks Algorae’s entry into the market while keeping its innovation pipeline intact. As results from the Peter Mac validation program come through in late 2025, the market will have more data to assess the long-term value of AlgoraeOS.
The AI + Pharma theme is a growing theme on the ASX, and this will be an interesting company for Samso News to follow. Currently, 1AI has a market capitalisation of just under AUD $16.9M and the share price chart below is indicating a good base for investors to take stock and do some good old DYOR.
Figure 3: The share price chart for 1AI as of 13th October 2025. (source: CommSec)
The Samso Way – Seek the Research
Follow Algorae’s TGA approvals, track launch timelines, and watch Q4 2025 R&D results for the bigger picture.
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