Algorae Pharmaceuticals – Distribution Agreement with Dr. Reddy’s Laboratories Expands Commercial Footprint
- Noel Ong
- 2 days ago
- 4 min read
Announcement
Algorae Signs Distribution Agreement with Dr. Reddy's - 27 November 2025 (click here to view the announcement)
Algorae Pharmaceuticals Limited (ASX: 1AI) has taken another step in building its commercial presence within the Australian pharmaceutical market. The Company has entered into a distribution agreement with Dr. Reddy’s Laboratories Ltd (NSE: DRREDDY), marking a strategic shift from purely into tangible near-term revenue generation. The first shipment of Capecitabine 500mg tablets is scheduled to arrive in Australia in December 2025, positioning Algorae for an accelerated commercial rollout.
The Business of Algorae Pharmaceuticals
Algorae operates a dual-focused business model combining:
AI-driven drug-combination discovery through its proprietary platform, AlgoraeOS.
Pharmaceutical commercialisation via its subsidiary AlgoraeRx, which sources, licenses, and distributes medicines across Australia and New Zealand.
This model integrates research partnerships—such as ongoing oncology validation studies at the Peter MacCallum Cancer Centre—with commercial distribution agreements to increase product accessibility and create a diversified revenue pathway.
Highlights – Strategic Commercial Expansion via Oncology Portfolio
Distribution agreement signed with Dr. Reddy’s Laboratories Ltd, a global pharmaceutical leader with operations across generics, biosimilars, APIs, and consumer health.
First shipment of Capecitabine expected in December 2025, supplying a widely used chemotherapy medicine (500 mg tablets) to the Australian market.
Strengthens Algorae’s oncology commercialisation strategy, supporting near-term revenue while broader AI-driven projects mature.
Second executed commercial agreement through AlgoraeRx, complementing ongoing oncology R&D at Peter MacCallum Cancer Centre, with validation results expected in Q4 2025.
Provides a strategic platform for future collaborations, leveraging Dr. Reddy’s global scale and reputation.
Leadership Commentary
Algorae Chief Commercial Officer, Mr. Vishal Shah, commented:
“Our distribution arrangement with Dr. Reddy’s for Capecitabine represents Algorae’s ongoing focus on oncology product commercialisation and provides the Company with a clear pathway to near-term revenue. We are delighted to enter into an agreement with such a reputable partner and look forward to positioning Algorae for long-term growth and future product collaborations”
About the Project
The Capecitabine distribution initiative forms part of AlgoraeRx’s growing portfolio of generic and specialty medicines. This agreement enhances supply channels for a key oncology drug and supports the Company’s broader objective of expanding patient access to essential treatments through reputable global manufacturers.
In parallel, Algorae continues to advance oncology validation testing at the Peter MacCallum Cancer Centre, where results are expected to inform future AI-guided therapeutic development.
Near-term Milestones to Watch
December 2025: Arrival of the first Capecitabine shipment to Australia.
Q4 2025: Results from oncology validation studies at the Peter MacCallum Cancer Centre.
Additional commercial agreements: Continued expansion of AlgoraeRx’s supply channels.
Pipeline development: Ongoing AI-enabled drug-combination research via AlgoraeOS.
Samso Concluding Comments
Algorae is steadily converting its AI-enabled drug discovery capability into commercially meaningful steps. The agreement with Dr. Reddy’s strengthens the Company’s near-term revenue outlook and demonstrates its ability to secure partnerships with global pharmaceutical groups. It shows management’s intent to generate revenue while continuing its AI-based discovery work.
The combination of AI-driven R&D with a growing portfolio of distributed medicines provides strategic diversification.
The introduction of Capecitabine into the Australian supply chain is a meaningful addition to AlgoraeRx’s portfolio. It positions the Company to participate in a stable oncology market segment.
Investors should not underestimate the partnerships with multinational groups, as this validates the Company’s credibility in a highly competitive sector. These relationships may become valuable as Algorae progresses additional products.
For investors, the next 12 months will centre on execution—particularly the delivery of the Capecitabine rollout and the outcomes of oncology validation studies.
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