Alkem Laboratories on Monday said it has signed an agreement with Sweden-based Biosergen AB (Biosergen) to develop and commercialise the latter’s novel anti-fungal drug.

The co-development and licence agreement is for BSG005, which Biosergen is developing for the treatment of severe and difficult-to-treat invasive fungal diseases.

Alkem said in a regulatory filing that after the successful completion of two phase I studies, the first trial will be conducted in India on patients with severe fungus disease who are intolerant or resistant to treatment with Amphotericin B, which is an anti-fungal medication. India is one of the countries with the highest incidence of difficult-to-treat and life-threatening fungal infections.

Alkem said that it will manage the first clinical patient trial, which is expected to start immediately after the regulatory approval.