Glenmark Pharmaceuticals witnessed a strong rally in its stock price on Friday, July 11, closing 10% higher and locking into the upper circuit. The rise followed the announcement by Ichnos Glenmark Innovation (IGI), its innovation subsidiary, of a historic worldwide licensing deal for the oncology asset ISB 2001 with US biopharma giant AbbVie.
With a potential value of $1.925 billion, the deal is the biggest licensing agreement ever made by an Indian pharmaceutical company and greatly enhances Glenmark’s standing in the global oncology and innovation market.
1,200% Returns Since Lockdown Lows:
Over the past few years, Glenmark Pharma has produced remarkable stock market returns. During the lockdown of the epidemic at a price of ₹ 160, the stock has now climbed ₹ 2,094 per share, translating into 1,200% returns. The latest 10% jump adds to a strong speed that has seen more than 28% stock profit in the previous month.
On July 11, the rally was inspired by heavy investor interest, in which the trading volume reached 0.70 lakh shares-more than 0.27 lakhs than an average of two weeks.
Inside the AbbVie-Glenmark Licensing Deal:
As per the terms of the agreement, IGI Therapeutics SA, a subsidiary of Ichnos Glenmark Innovation Inc., has licensed out its top-line investigational asset ISB 2001 to AbbVie, with exclusive development and commercialisation rights in top global markets such as the US, Europe, Japan, and China.
Glenmark Pharma retains commercialization rights in India and emerging economies in Latin America, Middle East, Africa, Russia/CIS, Australia, New Zealand, South Korea and the and the rest.
Deal Highlights:
- $700 million upfront payment to IGI
- Development, regulatory and commercial milestones pay $ 1.225 billion
- Tiered, double-digit royalties on net sales globally
This agreement underscores the global credibility of IGI’s BEAT® protein platform, and validates Glenmark’s long-term focus on innovation.
Strategic Market Positioning:
Under the licensing agreement, Glenmark will lead commercialisation across all emerging markets whereas AbbVie shall have responsibility for development and sales in North America, Europe, Japan, and Greater China. Such a dual-framework enables Glenmark to:
- Long -term royalty revenue safe from developed markets
- Expand direct access to development markets in Asia, Latin America and Africa
- Create reliability in global oncology innovation
The deal also aligns Glenmark with a top-tier global partner, giving its drug development programs a significant boost in both capital and capability.
Cyril Konto, M.D., President, Executive Director, and CEO of IGI, said:
“Our collaboration with AbbVie and Glenmark highlights IGI’s mission to accelerate access to transformative multispecifics globally. AbbVie’s presence in major markets and Glenmark’s stronghold in emerging regions offer complementary access strategies for ISB 2001, which shows strong promise in multiple myeloma.”
Conclusion
10% rally in Glenmark Pharma shares operate more and more than emotions – it demonstrates a strategic shift of the firm, which is supported by global partnership. Glenmark Pharma has rewritten its future trajectory with this deal. Company steps towards innovation and licensing bring new avenues not just for their shareholders but to Indian pharma as well. All eyes are now in clinical progress of ISB 2001 and Glenmark’s developed innovation pipeline.
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Disclaimer:
The information provided here is purely for educational and informational purposes only and reflects our personal analysis and opinions. We are not SEBI-registered advisors. Please consult a qualified financial advisor before making any investment decisions.