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

AbbVie partnership signals a new era for Glenmark Pharmaceuticals Ltd.'s subsidiary, Ichnos Glenmark Innovation, has signed an exclusive licensing agreement with AbbVie for its lead investigational asset, ISB-2001..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .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.:the strength of IGI’s BEAT protein platform for oncology and auto-immune diseases;the potential of ISB-2001 to treat relapsed/refractory multiple myeloma; and 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:reduced its financial leverage;improved the commercial prospects of innovative R&D;strengthened its ANDA pipeline for the US market; and 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..Click on the attachment to read the full report:.Glenmark Pharma Shares Hit Life High After License Deal With AbbVie For Cancer Drug.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

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

Based on the contours of the deal, Motilal Oswal adds an NPV of Rs 470 per share to the 27x 12M forward base business earnings to arrive at a target price of Rs 2,430.

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

Based on the contours of the deal, Motilal Oswal adds an NPV of Rs 470 per share to the 27x 12M forward base business earnings to arrive at a target price of Rs 2,430.

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