Shares of Glenmark Pharmaceuticals Ltd. soared to a record high on July 11, 2025, hitting a 20% upper circuit at ₹2,984 on the NSE, following a landmark $700 million licensing agreement between its subsidiary, Ichnos Glenmark Innovation (IGI), and U.S.-based biopharmaceutical giant AbbVie for the cancer drug ISB 2001. Although the stock later moderated, closing 12.66% higher at ₹2,145 by 12:15 PM, the deal has sparked widespread optimism about Glenmark’s pivot to innovative biotechnology and its potential to reshape the global multiple myeloma market. Described as the largest out-licensing deal by an Indian pharmaceutical company, this agreement marks a defining moment for India’s biotech sector, with analysts projecting significant upside for Glenmark’s stock and long-term growth.
The Mega Deal: Terms and Structure
Announced on July 10, 2025, the exclusive global licensing agreement involves IGI Therapeutics SA, a wholly-owned subsidiary of Ichnos Glenmark Innovation, and AbbVie, a leader in oncology and immunology. The deal centers on ISB 2001, a first-in-class trispecific T-cell engager antibody targeting BCMA, CD38, and CD3, designed to treat relapsed or refractory multiple myeloma, a challenging blood cancer affecting 200,000–300,000 patients globally. Currently in Phase 1 dose-expansion trials, ISB 2001 has shown promising early results, with a 79% overall response rate and 30% complete response in heavily pre-treated patients, earning U.S. FDA Orphan Drug Designation in July 2023 and Fast-Track status in May 2025.
Under the agreement, AbbVie secures exclusive rights to develop, manufacture, and commercialize ISB 2001 in major markets, including North America, Europe, Japan, and Greater China. Glenmark retains commercialization rights in emerging markets, such as India, the rest of Asia (excluding Japan and China), Latin America, Russia/CIS, the Middle East, Africa, Australia, New Zealand, and South Korea. IGI will receive an upfront payment of $700 million (approximately ₹6,000 crore), with potential milestone payments of up to $1.225 billion tied to clinical, regulatory, and commercial achievements, plus tiered double-digit royalties on net sales.
“This is not just a Glenmark moment—it’s an India moment,” said Glenn Saldanha, Managing Director and CEO of Glenmark Pharmaceuticals, in a Mumbai press briefing. “The deal value reflects the strength of early clinical data and ISB 2001’s potential to transform treatment for multiple myeloma.”
ISB 2001: A Breakthrough in Multiple Myeloma Treatment
ISB 2001, developed using IGI’s proprietary BEAT® (Bispecific Engagement by Antibodies based on the T-cell receptor) protein platform, is a trispecific antibody that simultaneously targets BCMA and CD38 on myeloma cells and CD3 on T-cells, redirecting the immune system to attack cancer cells. This innovative approach positions ISB 2001 as a potential first-in-class therapy in the $30 billion multiple myeloma market, projected to reach $50 billion by 2030. Unlike existing bispecific antibodies, no trispecific antibodies are currently commercialized, placing Glenmark and AbbVie at the forefront of immuno-oncology innovation.
Cyril Konto, MD, President and CEO of IGI, emphasized, “This agreement marks a defining milestone in IGI’s journey. Our partnership with AbbVie accelerates ISB 2001’s path to patients and strengthens our focus on the next generation of BEAT®-enabled assets.” Roopal Thakkar, AbbVie’s Executive Vice-President and Chief Scientific Officer, added, “Multispecifics represent a new frontier in immuno-oncology with the potential to deliver deeper, more durable responses by engaging multiple targets simultaneously.”
The drug’s promising Phase 1 data, presented at the American Society of Hematology (ASH) 2024 and ASCO 2025, sparked interest from multiple global pharma companies, with negotiations intensifying after the JP Morgan Healthcare Conference in January 2025. Subject to regulatory clearances, AbbVie will lead Phase 2 and 3 trials, with commercialization expected in four to five years if timelines are met.
Market Reaction and Analyst Perspectives
The announcement triggered a sharp rally in Glenmark’s stock, which surged from ₹1,919.60 on July 10 to a peak of ₹2,984, reflecting investor confidence in the deal’s financial and strategic implications. By midday, the stock stabilized at ₹2,145, up 12.66%. Over the past year, Glenmark’s stock has risen 52%, with a 212% increase over two years and 436% over three years, underscoring its sustained upward trajectory.
Analyst reactions have been largely positive, with varied price targets:
- Motilal Oswal: Reaffirmed a “buy” rating with a target price of ₹2,430, incorporating a net present value (NPV) addition of ₹470 per share from the deal. The brokerage projects a 23% earnings CAGR for FY25–27, driven by 10% growth in domestic formulations, 7% in the U.S., 12% in the EU, and 14% in other regions, with a 200-basis-point margin expansion. It highlighted the deal’s validation of IGI’s BEAT platform, ISB 2001’s potential, and its commercial viability.
- HSBC: Raised its price target by 32% from ₹1,720 to ₹2,275, citing the deal’s transformative impact on Glenmark’s financial health and innovation credentials.
- Nomura: Maintained a “neutral” rating with a conservative target of ₹1,500, noting the deal’s value exceeded expectations but anticipating increased R&D spending by IGI. Nomura suggested a potential IPO for IGI in the medium term.
Of 12 analysts covering Glenmark, eight recommend “buy,” three suggest “hold,” and one advises “sell.” The deal’s $700 million upfront payment ranks as the fourth-largest globally for multispecific or bispecific assets in recent years, following deals like 3SBio-Pfizer ($1.25 billion) and BioNTech-BMS ($11.1 billion).
Suresh Subramanian, Partner and Life Science Leader at EY, described the deal as a “noteworthy milestone,” noting that oncology’s shift toward multispecifics positions ISB 2001 as a game-changer. “The deal endorses Glenmark’s BEAT platform and affirms the potential of its broader pipeline,” he said.
Strategic Implications for Glenmark
The AbbVie deal marks a pivotal shift for Glenmark, traditionally known for generics, toward high-value innovation in oncology and autoimmune diseases. The $700 million upfront payment significantly strengthens Glenmark’s balance sheet, reducing its net debt of ₹400 crore and funding IGI’s $70 million annual R&D budget for the next three to four years. Saldanha indicated that a portion of the funds would be used to reward shareholders, potentially through dividends or buybacks, while supporting further development of pipeline assets like ISB 2301 for solid tumors.
The deal also validates Glenmark’s high-risk, high-reward R&D strategy, which faced skepticism from investors due to its cash-intensive nature. Over the past few years, Glenmark has optimized R&D spending (from 8% of sales in FY19 to 3.5% in 9MFY25), reduced financial leverage, and strengthened its U.S. generics portfolio in respiratory and injectable segments. The company reported a Q4 FY25 net profit of ₹253.57 crore, up from ₹190.60 crore, with revenue of ₹2,704.03 crore, signaling a recovery from a ₹1,830.85 crore loss in FY24.
Posts on X reflect bullish sentiment, with @mystockedge stating, “The ISB 2001 deal marks Glenmark’s serious biotech pivot—bringing global validation, upfront cash, and long-term monetization. It could be a structural rerating.” @NDTVProfitIndia noted mixed brokerage reactions but highlighted the deal’s significance for Indian biotech.
Broader Impact on Indian Pharma
The Glenmark-AbbVie deal is a landmark for India’s pharmaceutical industry, positioning the country as a hub for cutting-edge biotech innovation. Shrikant Akolkar of Nuvama called it “possibly the biggest deal by an Indian company in the biotechnology space,” highlighting its global ranking among multispecific antibody agreements. The deal follows Glenmark’s earlier out-licensing successes, such as a $320 million deal with Almirall for ISB 880 in 2021 and an agreement with Astria Therapeutics for ISB 830 in 2023, reinforcing IGI’s growing reputation in novel biologics.
For AbbVie, the deal bolsters its oncology portfolio, complementing drugs like Imbruvica and Venclexta, and strengthens its position in the multiple myeloma market, where competitors like Pfizer and Johnson & Johnson have launched therapies. Glenmark’s retention of emerging market rights ensures a significant role in ISB 2001’s global commercialization, particularly in India, where multiple myeloma cases are rising.
What Investors Should Watch
Investors should monitor several factors:
- Clinical Progress: Successful completion of Phase 1–3 trials and regulatory approvals will trigger milestone payments, impacting Glenmark’s cash flow and stock performance.
- Commercialization Timeline: With commercialization projected in four to five years, sustained R&D investment and trial outcomes will be critical.
- IGI’s Future: Analysts speculate that IGI could pursue an IPO in the medium term, potentially unlocking further value for Glenmark shareholders.
- Market Dynamics: The multiple myeloma market’s growth to $50 billion by 2030 offers significant upside, but competition from established players like Pfizer and J&J remains a challenge.
- Shareholder Returns: Glenmark’s plans to reward shareholders with the upfront payment could include dividends or buybacks, boosting investor confidence.
Conclusion
The Glenmark-AbbVie deal for ISB 2001 is a transformative milestone, cementing Glenmark’s transition from a generics-focused company to a global innovator in oncology. The $700 million upfront payment, potential $1.225 billion in milestones, and royalties provide financial stability and growth potential, while the BEAT platform’s validation opens doors for future pipeline assets. Despite a conservative outlook from some analysts like Nomura, the deal’s scale and strategic implications have fueled a 52% stock rally over the past year, with projections of further upside to ₹2,430. As India’s biotech sector gains global recognition, Glenmark’s achievement underscores the country’s potential to lead in high-value, innovative therapies, setting a new benchmark for the industry.
Last Updated on Friday, July 11, 2025 2:20 pm by Lok Ram
About The Author
