Glenmark Arm IGI's AbbVie Deal Unfolds Blockbuster Potential, Says Motilal Oswal — Read Report

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Motilal Oswal Report

Under the agreement, AbbVie will receive exclusive rights to develop, manufacture, and commercialize ISB-2001 across key developed markets, including North America, Europe, Japan, and Greater China.

The deal validates several aspects of Glenmark Pharmaceuticals Ltd.:

1. the strength of IGI’s BEAT protein platform for oncology and auto-immune diseases;

2. the potential of ISB-2001 to treat relapsed/refractory multiple myeloma; and

3. the commercial viability of ISB-2001 following successful clinical trials and subsequent commercialization.

Moreover, AbbVie has established itself as a diversified biopharma leader, combining scientific innovation with strong commercial execution. In oncology, the company has built a robust presence anchored by two cornerstone therapies: Imbruvica, a BTK inhibitor, and Venclexta, a BCL-2 inhibitor.

These medicines have transformed the treatment landscape for chronic lymphocytic leukemia and other B-cell malignancies, generating multi-billion-dollar revenues and reinforcing AbbVie’s reputation as a pioneer in hematologic cancer.

Notably, oncology accounts for the majority of global licensing deals. This agreement ranks as the fourth-largest worldwide in terms of upfront payment.

Based on the contours of the deal, we add an net present value of Rs 470 per share to the 27x 12 months forward base business earnings to arrive at our target price of Rs 2,430.

Over the past two years, Glenmark Pharma has:

1. reduced its financial leverage;

2. improved the commercial prospects of innovative R&D;

3. strengthened its ANDA pipeline for the US market; and

4. undertaken a strategic reset in its domestic formulation business.

Accordingly, we estimate 11%/17%/20% sales/Ebitda/PAT CAGR over FY25-27, reaching Rs 163 billion/Rs 33 billion/Rs 20 billion. Reiterate Buy.

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