Algorae Targets $10M ANZ Market with New Oncology Licensing Agreement

Strategic Commercial Expansion

Algorae Pharmaceuticals Limited (ASX – 1AI), an AI-enabled drug development company, has taken a significant step into the commercial pharmaceutical market by signing an exclusive licensing agreement with Sakar Healthcare Limited. This deal grants Algorae the rights to launch five generic oncology medicines in Australia and New Zealand, targeting a combined addressable market worth approximately $10 million annually.

The agreement represents Algorae's first commercial deal in these key markets, signaling a strategic expansion beyond its core AI-driven research and development activities. By leveraging Sakar's established manufacturing capabilities, Algorae aims to build a commercial presence while continuing to advance its innovative oncology drug discovery platform.

Leveraging Manufacturing Expertise

Sakar Healthcare, headquartered in Ahmedabad, India, is a well-regarded pharmaceutical manufacturer specializing in sterile injectables and various dosage forms, including tablets and capsules. Algorae conducted thorough due diligence, including an on-site inspection of Sakar’s manufacturing facilities and meetings with senior management, to ensure alignment on quality, capacity, and regulatory compliance.

This partnership allows Algorae to market these oncology generics under its own brand, combining Sakar’s production strengths with Algorae’s commercial focus. Both companies see this collaboration as a way to enhance patient access to trusted oncology therapies in the ANZ region.

Complementing AI-Driven R&D

Alongside this commercial initiative, Algorae continues to advance its proprietary AI platform, AlgoraeOS, which applies machine learning to identify synergistic drug combinations. The company is currently validating 21 oncology drug targets in collaboration with the Peter MacCallum Cancer Centre, with results expected in the fourth quarter of 2025.

The licensing deal complements these R&D efforts by establishing a revenue stream and market presence that could support further innovation and development. Regulatory planning for Therapeutic Goods Administration (TGA) approval is already underway, with updates on timelines and revenue contributions anticipated as the process progresses.

Leadership Perspectives

Algorae’s Chief Commercial Officer Vishal Shah described the agreement as a milestone that strengthens both companies’ growth ambitions and expands Algorae’s commercial footprint. Meanwhile, Sakar’s Managing Director Sanjay S. Shah highlighted the partnership as a fusion of manufacturing expertise and commercial focus aimed at improving access to oncology medicines.

Algorae’s Chairman David Hainsworth emphasized the strategic importance of the deal in positioning the company for long-term growth and enhancing patient access to quality therapies.