Deals, Drugs, And Disruption: Glenmark, Lupin, IPCA Labs And Others Lead India's Pharma Opportunity Boom

At a time when Indian markets have ranked among the worst performers in the world over the past 12 months, the pharma sector is witnessing a wave of fresh deals that may provide the impetus the industry needs in order to enter the next leg of growth.

Indeed, the pharma space has witnessed a series of new deals, partnerships and drug launches this week, potentially offering investors a shot at significant growth across oncology, biosimilars and diabetes care.

One of the biggest developments this week in the pharma space was headlined by AstraZeneca and Daiichi Sankyo, as their drug combination — Enhertu with pertuzumab—was accepted for treatment of metastatic breast cancer.

Enhertu is an antibody-drug conjugate, which has been a major focus area for Daiichi, the second-largest pharmaceutical company in Japan.

This development may ripple into the rest of the pharma market, including Cohance Lifesciences, which supplies the active compound for Enhertu.

IPCA Laboratories Ltd. is stepping deeper into the biosimilar space, having reached a technology transfer and joint development agreement with BioSimilar Sciences (BSS) for a monoclonal antibody biosimilar targeting cancer and autoimmune diseases.

What are biosimilars, even? you ask. They are medicines that are highly similar to an already approved biological drug. They have no meaningful difference but are usually more affordable.

Think of a biosimilar as a replica of a famous hand-painted portrait. A skilled artist studies the portrait, uses the same colours and techniques and creates a version that looks and feels similar to the original art.

As part of the deal, Ipca will transfer the product's late-stage development, while manufacturing and supply will be handled by BSS.

This agreement is part of IPCA's plans to reshore supply to the United States, where the market for this category of biosimilar is estimated to be around $4 billion. However, the final product launch is expected in 2027.

Sticking to the oncology theme, Glenmark Pharmaceuticals Ltd. are in focus on the back of its exclusive license and collaboration deal with China's Hengrui Pharma for Trastuzumab Rezetecan, a cancer therapy.

The deal will allow Glenmark to develop and commercialise the drug globally, excluding China, Hong Kong, Macao, Taiwan, the U.S., Canada, Europe, Japan and Commonwealth countries.

The deal includes an upfront payment of $18 million to Hengrui, with potential milestone payments that exceed $1 billion. Glenmark will also pay royalties on future sales. Sounds like just another Manchester United signing, right?

The drug is already approved in China for lung cancer and is currently under review for the treatment of breast cancer.

Glenmark's pact Hengrui is seen a massive step for the company as it looks to expand the oncology pipeline and strengthen its focus on differentiated therapies.

Indian pharma giants Sun Pharma Ltd. and Dr Reddy's Laboratories Ltd. have reached a settlement with Japan's Eisai Pharma.

This settlement should pave the way to launch a generic version of Lenvima (gLenvima) in the U.S.

Lenvima, again, is used in cancer treatment and generates a whopping $1.5 billion annually in the American market. Hence, this could be a lucrative opportunity for both the pharma giants.

Finally, moving away from cancer drugs, treatments and therapies, India's diabetes care market is seeing a shake up, with global giant Novo Nordisk phasing out its human insulin pens, creating a potential opportunity of around Rs 600-800 crore.

This development is expected to benefit domestic companies such as Lupin, Wockhardt Pharma and Eris Lifesciences.

All things considered, it is apparent that the Indian pharma market is on the move and it is not relying solely on generics anymore. Although there is still a long way to go, global partnerships, high-margin therapies and and innovation-driven growth may serve as the next big themes in the pharma space.