Nomura has maintained its neutral rating on Glenmark Pharma with a target price of ₹1,500 after the company announced an in-licensing agreement with Hengrui Pharma for Trastuzumab Rezetecan, an oncology-focused antibody drug conjugate (ADC).
The agreement gives Glenmark exclusive rights to develop and commercialise the product in India and select emerging markets. As part of the deal, Glenmark will pay Hengrui an upfront fee of US$18 million, while Hengrui will be eligible to receive up to US$1.1 billion in regulatory and commercial milestone payments, along with royalties on net sales once the drug is commercialised.
Nomura said Trastuzumab Rezetecan could become the single-largest contributor to Glenmark’s target of generating US$350–400 million in innovative drug revenues over the next five to seven years. However, given the long gestation period for oncology assets and associated risks, the brokerage retained its neutral stance.
Disclaimer: The views and recommendations made in this article are those of Nomura. This article does not constitute investment advice. Investors should consult their financial advisors before making any investment decisions.
