Shares of Glenmark Pharmaceuticals are expected to remain in focus on Friday, July 11, after its subsidiary IGI Therapeutics SA signed a blockbuster licensing agreement with AbbVie worth up to $1.925 billion for its lead investigational asset, ISB 2001.
On Thursday, the company announced that IGI Therapeutics — a part of the Ichnos Glenmark Innovation (IGI) alliance — granted AbbVie exclusive rights to develop, manufacture, and commercialise ISB 2001 in North America, Europe, Japan, and Greater China. Glenmark will receive an upfront payment of $700 million, with potential milestone payments of up to $1.225 billion and tiered double-digit royalties on future sales.
The deal marks one of the largest out-licensing agreements by an Indian pharmaceutical firm in recent years and significantly strengthens Glenmark’s balance sheet. CEO Glenn Saldana called it a “landmark moment” for Indian research, noting that ISB 2001 could transform the multiple myeloma treatment market, which is projected to reach $50 billion by 2030.
Saldana also said the deal would help Glenmark pare its debt, which stood at ₹400 crore before the transaction, and allow it to reward shareholders.
Analysts expect the deal to improve Glenmark’s cash flows, reduce leverage, and bolster investor sentiment, making the stock a key one to watch in Friday’s trading session.
