Share Price of Glenmark Pharma: Following the signing of a worldwide licensing deal with AbbVie for its cancer medication, ISB 2001, by its subsidiary, Ichnos Glenmark Innovation, Glenmark Pharmaceuticals’ shares skyrocketed. Glenmark keeps its rights in emerging regions, while AbbVie acquires exclusive rights in big markets. The agreement, which highlights the drug’s potential to treat multiple myeloma, involves an upfront payment of $700 million as well as possible milestone payments.
After its step-down, wholly owned subsidiary, Ichnos Glenmark Innovation (IGI), signed an exclusive global licensing agreement with US-based AbbVie for its experimental cancer drug, ISB 2001, Glenmark Pharmaceuticals shares jumped 10% to reach the upper circuit and a new 52-week high of Rs 2,095.65 on the BSE on Friday.
Under the arrangement, ISB 2001, a treatment for relapsed or refractory multiple myeloma that is presently undergoing Phase 1 clinical trials, will be developed together. AbbVie will have the sole authority to create, produce.
Glenmark Pharma Redefines Indian Innovation with $2 Billion Global Licensing Deal
Glenmark Pharmaceuticals may have just redefined the global perception of Indian pharma innovation. On July 10, its Swiss-based innovation subsidiary, IGI Therapeutics SA, announced a game-changing global licensing agreement with U.S. biopharma giant AbbVie for its lead investigational molecule, ISB 2001 — currently in Phase 1 trials.
This landmark deal is one of the largest ever for an Indian biotech company, featuring a massive $700 million (approx. ₹6,000 crore) upfront payment, up to $1.2 billion in milestone-based payouts, and tiered double-digit royalties on future sales.
If ISB 2001 proves successful, Glenmark could unlock a royalty stream surpassing its current EBITDA — a transformative financial boost that analysts say could de-risk the company’s balance sheet and significantly re-rate Glenmark’s long-standing innovation narrative.
“With a total deal value of $2 billion and substantial royalties, AbbVie’s implied peak sales estimate for ISB 2001 is likely in the $5–6 billion range,” said Vishal Manchanda, pharma analyst at Systematix. “If the drug delivers, Glenmark stands to earn over $500 million annually in royalties — more than its present consolidated EBITDA,” he added.
This milestone sets a precedent for how global markets value Indian pharma innovation — and positions Glenmark as a serious player on the global biotech stage.Additionally, Manchanda noted that even by international standards, the transaction size for a Phase 1 molecule is substantial. He anticipates peak sales in six to seven years and commercialization in around three years.
Glenmark Rethinks IGI IPO Plans After Landmark Deal
Following the AbbVie deal, Glenmark no longer sees an immediate need to pursue an IPO for its Swiss innovation arm, IGI Therapeutics — a move it had earlier considered to support its high R&D expenditure.
According to management in the post-deal briefing, IGI, which requires around $70 million annually for R&D over the next three years, will now utilize the upfront cash from the deal. A modest dividend will be paid to Glenmark, but there are no significant deleveraging plans given IGI’s minimal debt profile.
This strategic pivot marks one of the most significant pre-IPO de-risking developments in Indian pharma in recent years.
“This effectively makes the IGI platform self-sustaining,” said Vineet Gala, an independent pharma analyst. “Glenmark had been supporting it through leverage and internal cash flows for years. With this deal, the pressure eases — shifting the narrative from ‘R&D funded by debt’ to a high-potential, monetizable innovation pipeline,” he added.
