Shilpa Medicare Shares Surge 4% After Subsidiary Signs Strategic Partnership for Novel Cancer Therapy

Shares of Shilpa Medicare rose over 4% to ₹657 in morning trade on March 18 after its subsidiary, Shilpa Biologicals, announced a strategic partnership with Switzerland-based mAbTree Biologics AG.

The collaboration aims to co-develop and manufacture a novel immuno-oncology therapy targeting a newly identified immune checkpoint protein, which could revolutionise cancer treatment.

Therapy Targets New Immune Checkpoint Protein

The therapy in focus is a fully human monoclonal antibody designed to enhance T-cell activation and improve the immune system’s response against cancer. Researchers believe it has the potential to convert ‘cold’ tumours—those with poor immune infiltration—into ‘hot’ tumours that respond better to treatment.

This makes it a promising option for various cancers, including lung and head and neck carcinomas.

Under the agreement, Shilpa Biologicals will handle the drug’s development, including clinical trials, and serve as the long-term commercial supplier. The manufacturing will take place at Shilpa Biologicals’ GMP (Good Manufacturing Practice) facility in Dharwad, Karnataka.

Potential to Revolutionise Cancer Treatment

The program aims to develop a fully human monoclonal antibody targeting a novel immune checkpoint protein that enhances T-cell activation, triggering a potent immune response against tumours.

This approach is similar to the well-established PD-1/PD-L1 blockade, which has achieved significant clinical success in cancer treatment.

Emerging research suggests that the new target holds immense therapeutic potential across various immuno-oncological conditions, both as a standalone treatment and in combination with other therapies. This could open new avenues for patients who do not respond to current immunotherapies.

Leadership Highlights Vision and Potential

Madhav Bhutada, Director of Shilpa Biologicals, emphasised the collaboration’s alignment with the company’s vision to deliver innovative and affordable oncology treatments globally. “This collaboration aligns with our vision to deliver innovative and affordable oncology treatments globally,” he said.

Sridevi Khambhampaty, CEO of Shilpa Biologicals, called the therapy a “new frontier” in immuno-oncology. She highlighted its potential to benefit patients who do not respond to current immunotherapies, underscoring the transformative impact it could have on cancer treatment.

Raj Andhuvan, CEO of mAbTree Biologics AG, emphasised the partnership’s goal of expanding access to cancer treatments in India and other underserved markets. He praised Shilpa’s strong scientific expertise and its ability to bring innovative therapies to market.

Stock Performance

At around 10:12 AM (IST), Shilpa Medicare share price is trading at ₹657.55, up 4.34% from the previous close on the National Stock Exchange (NSE). Despite the recent surge, Shilpa Medicare’s stock has declined by 23% since the start of the year, weighed down by broader market weakness.

Conclusion

The strategic partnership between Shilpa Biologicals and mAbTree Biologics AG marks a significant step forward in the development of innovative cancer therapies. By targeting a novel immune checkpoint protein.

The collaboration has the potential to transform cancer treatment, particularly for patients who do not respond to existing immunotherapies. The market’s positive reaction to the announcement reflects optimism about the therapy’s potential and Shilpa Medicare’s role in advancing cancer care.

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