Glenmark Pharma shares jump 10% to hit record high after cancer drug licensing deal with AbbVie

Shares of Glenmark Pharmaceuticals Ltd surged 10 per cent in early trade on Friday, hitting a new all-time high of Rs 2,094 apiece, after the company announced a major licensing agreement involving its innovation subsidiary. The counter saw heavy trading volume on BSE in combination with the price action as around 61,000 shares were last seen changing hands. The figure was higher than the two-week average volume of 27,000 shares. Turnover on the counter came at Rs 12.78 crore, commanding a market capitalisation (m-cap) of Rs 59,139.41 crore.

Today’s rally followed Glenmark’s Thursday announcement that its innovation arm, Ichnos Glenmark Innovation (IGI), has entered into an exclusive global licensing deal with US-based AbbVie. The agreement grants AbbVie rights to develop, manufacture and commercialize IGI’s lead investigational asset, ISB 2001, for oncology and autoimmune indications — adding to AbbVie’s expanding cancer therapy portfolio.

Under the terms of the deal, AbbVie will hold exclusive rights in North America, Europe, Japan and Greater China, while Glenmark Pharmaceuticals will manage development, manufacturing and commercialization of ISB 2001 in emerging markets, including the rest of Asia, Latin America, Russia/CIS, the Middle East, Africa, Australia, New Zealand and South Korea, according to a regulatory filing.

ISB 2001 is a novel trispecific T-cell engager designed to simultaneously target BCMA and CD38 on myeloma cells and CD3 on T-cells. It is currently undergoing Phase 1 clinical trials in patients with relapsed or refractory multiple myeloma.

Pending regulatory approvals, IGI will receive an upfront payment of $700 million, with potential milestone-based payouts of up to $1.225 billion. Additionally, IGI is eligible for tiered, double-digit royalties on global net sales.

Cyril Konto, MD, President and CEO of IGI, stated, “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.”