Nomura has reiterated its ‘Neutral’ rating on Glenmark Pharmaceuticals, maintaining a target price of ₹1,500. This comes after the company held its post-earnings analyst meeting, where management commentary remained broadly in line with expectations.
The stock has rallied over 16% following Glenmark’s out-licensing deal with AbbVie for its R&D asset ISB 2001, significantly outperforming the Nifty. Nomura believes that this run-up has already captured most of the value from that transaction, and further upside will depend on the core business performance.
In particular, Nomura highlights the importance of improvement in US operations, where the company has been facing margin pressures and regulatory headwinds. Glenmark also plans to pursue innovation-led growth in India, emerging markets, and Europe, especially through its branded and specialty portfolio.
While the ISB 2001 licensing deal is seen as a positive milestone, the brokerage sees no immediate catalyst for a further re-rating unless the base business delivers consistently across key geographies.
