Glenmark Pharma Shares Locked at 10% Upper Circuit on Subsidiary’s $700M Deal

On Friday, the Glenmark Pharma share price hit a 10 percent upper circuit, touching a day’s high price of Rs. 2,094.40 on NSE after the exchange filings revealed that it took a giant step in its innovation-led growth journey by entering into a landmark licensing agreement with global pharmaceutical leader AbbVie. This deal includes ISB 2001, a first-in-class trispecific antibody developed for the treatment of relapsed or refractory multiple myeloma (blood cancer arising from plasma cells in the bone marrow). 

Under the agreement, Glenmark Pharma’s innovation arm, Ichnos Glenmark Innovation (IGI), will receive an upfront payment of $700 million from AbbVie, with the potential to earn an additional $1.225 billion in development, regulatory, and commercial milestone payments. Furthermore, Glenmark stands to gain tiered, double-digit royalties on net sales of ISB 2001 in AbbVie’s licensed territories, which include North America, Europe, Japan, and Greater China. The partnership was forged after ISB 2001 demonstrated impressive early-phase clinical results, including a 79 percent overall response rate and a 30 percent complete response rate in patients with advanced multiple myeloma with a favourable safety profile.

The impact of this strategic partnership is already evident in Glenmark’s robust financial performance for FY25. The company reported consolidated revenue of Rs. 13,322 crore, representing a healthy 12.8 percent year-on-year growth, driven by strong performance in the Indian and European markets. The EBITDA nearly doubled to Rs. 2,351 crore, with margins expanding to 17.6 percent. Profit after tax (PAT) surged to Rs. 1,047 crore, with a margin of around 7.86 percent. The domestic formulations business continued its growth trajectory, while the European segment also maintained strong momentum. However, the North American business faced a slight decline.

Glenmark Pharma’s leadership has also outlined a roadmap for potentially listing IGI through an initial public offering (IPO) in the future, capitalising on its now self-sustaining financial position post-deal. Strengthening the balance sheet is a key priority, with net debt standing around Rs. 489 crore as of FY25, which is before the AbbVie agreement. The company plans to reward shareholders as it continues to deliver strong financial results.

The company expects its annual revenue to grow in the 10% to 12% range, with EBITDA margin to hover around 19% to 20%, and cash generation in the range of Rs. 300 crore to Rs. 400 crore post interest and dividend in FY26. Glenmark’s strategic partnership with AbbVie, improved FY25 results, and focused innovation pipeline collectively position the company for sustained growth and leadership in the global pharmaceutical industry.