Glenmark Pharmaceuticals will turn net cash positive on its licensing deal with AbbVie Inc, according to S&P Global Ratings on Thursday. The agreement will further strengthen the company's financial position and liquidity, reversing results that led to a reported net debt of Rs 4.9 billion last year, it said in a statement.
On July 11, 2025, Glenmark, through wholly-owned subsidiary IGI Therapeutics SA, announced an exclusive licensing agreement with AbbVie for ISB 2001, a lead investigational asset, developed by IGI, targeted for the treatment of cancer and autoimmune diseases.
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"Following the transaction, we expect Glenmark's adjusted debt to decline to Indian rupee 10 billion-11 billion in fiscal 2026," S&P Global Ratings said.
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This will help offset higher working capital outflow than expected, which fuelled negative operating cash flow in fiscal 2025, it added.
Consequently, Glenmark's adjusted debt rose to about Rs 28 billion in fiscal 2025, compared with Rs 18.1 billion in fiscal 2024.
"We estimate revenue will increase about 10% in fiscal 2026 and 9-11% annually for the following three years on new product launches and steady performance of the company's core portfolio," S&P Global Ratings said.
Further, it said, "We expect Glenmark's Ebitda margins to remain stable during this period without sizable remediation costs. Also, working capital outflow should moderate to Rs 12 billion-Rs 14 billion in fiscal 2026." Glenmark could be upgraded if its business position improves materially amid a significant rise in revenue accompanying persistently higher profitability, it noted.
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