Glenmark Pharmaceuticals’ shares surged by 10% after its innovation arm secured a massive deal with AbbVie for an investigational drug targeting cancer and autoimmune diseases.
A Landmark Deal for Glenmark
Glenmark Pharmaceuticals saw its stock price jump significantly following a major announcement. The company’s innovation arm, Ichnos Glenmark Innovation (IGI), has struck a deal with global biopharmaceutical giant AbbVie.
This collaboration focuses on ISB 2001, an under-development drug. The agreement could be worth up to USD 2 billion, marking it as one of the largest transactions in the pharmaceutical sector recently.
Understanding ISB 2001
ISB 2001 is a promising drug candidate designed to treat a range of conditions, including various forms of cancer and autoimmune diseases. It was developed using IGI’s proprietary ‘BEAT protein platform,’ which is tailored for oncology and autoimmune applications.
This platform represents advanced research in drug development, aiming for more targeted and effective treatments.
Global Reach of the Partnership
Under the terms of the agreement, AbbVie gains exclusive global rights to develop, manufacture, and commercialize ISB 2001. Their focus will be on key markets including North America, Europe, Japan, and Greater China.
Meanwhile, Glenmark Pharmaceuticals will take the lead on developing, manufacturing, and commercializing ISB 2001 in emerging markets. This includes regions like the rest of Asia, Latin America, the Russia/CIS region, the Middle East, Africa, Australia, New Zealand, and South Korea.
The Financial Details
The financial terms of this deal are substantial. Subject to regulatory clearance, IGI is set to receive an upfront payment of USD 700 million. This initial payment alone is a significant boost for the company.
Furthermore, IGI stands to receive up to USD 1.225 billion in additional payments. These future payouts are tied to various development, regulatory, and commercial milestones being met. The deal also includes tiered, double-digit royalties on net sales, ensuring Glenmark a share in the drug’s long-term success.
Market Reacts Strongly
Investors reacted positively to the news, pushing Glenmark Pharma shares up by 9.99 percent on the BSE. The stock hit its 52-week high, reaching the upper circuit limit of Rs 2,095.65.
Similarly, on the NSE, the stock zoomed 10 percent, also hitting its 52-week high and upper circuit level at Rs 2,094.40. This strong market performance reflects investor confidence in the potential of this new partnership and drug.
- Glenmark shares surged 10% after a major deal with AbbVie.
- The deal is for ISB 2001, a drug targeting cancer and autoimmune diseases.
- The agreement could be worth up to USD 2 billion, with an initial USD 700 million upfront payment.
- AbbVie will commercialize in major developed markets; Glenmark will handle emerging markets.
This strategic alliance positions Glenmark Pharmaceuticals for significant growth and showcases the potential of its innovative drug development platform.
