Glenmark Pharmaceuticals shares soared 10% on July 11 after its innovation arm struck a landmark global licensing agreement with US-based AbbVie for its cancer drug, currently under trials. The deal, offering a potential royalty windfall if the cancer drug in question proves successful, bolstered investor sentiment for the drugmaker, also triggering a sharp spike in trading volumes.
Ichnos Glenmark Innovation (IGI), a subsidiary of Glenmark, focused on novel biologics, has granted AbbVie exclusive global rights to develop, manufacture and commercialise ISB 2001—a first-in-class investigational treatment currently in Phase 1 trials for relapsed or refractory multiple myeloma, a difficult-to-treat form of blood cancer.
The deal is being hailed as a significant milestone for India’s pharmaceutical sector, signalling a shift from its traditional focus on generics towards homegrown innovation.
AbbVie will now get to develop, manufacture and commercialise the drug for the US, Europe, Japan, and China markets, while Glenmark retains commercial rights across emerging markets including parts of Asia, Latin America, the Middle East, and Africa.
Under the terms of the agreement, IGI will receive an upfront payment of $700 million, with potential milestone payments of up to $1.225 billion, alongside tiered double-digit royalties on net sales. If ISB 2001 progresses successfully through clinical trials and secures regulatory approval, the resulting royalty stream could surpass Glenmark’s current annual Ebitda—a transformative prospect for the company.
Bloomberg Intelligence estimates the global market for multiple myeloma therapies could reach $33 billion by 2030, underscoring the scale of opportunity.
AbbVie will assume responsibility for Phase 2 and 3 trials, with regulatory filings expected in four to five years if results are favourable.
