HSBC bullish on Glenmark Pharmaceuticals with a ‘Buy’ rating and has raised its target price to ₹2,275 per share, citing the company’s landmark out-licensing deal with global biopharma major AbbVie for its oncology candidate ISB 2001.
The agreement will see Glenmark receive an upfront payment of $700 million from AbbVie, with the potential to earn up to $1.225 billion in milestone payments. The deal also includes tiered double-digit royalties on future commercial sales of ISB 2001, a potential first-in-class targeted protein degrader for relapsed and refractory multiple myeloma.
According to HSBC, the transaction is highly value-accretive and could translate into a potential net present value (NPV) of ₹320 per share for Glenmark.
“This deal validates Glenmark’s research capabilities and opens up a significant non-linear earnings opportunity. It also reinforces the value of Glenmark’s R&D pipeline, which could attract more strategic interest going forward,” the brokerage noted.
The stock has seen renewed investor interest after the deal announcement, with analysts viewing it as a critical step in Glenmark’s transformation from a generic-driven to an innovation-led pharmaceutical company.
