Glenmark Pharma, a BSE 500 stock, has rallied 34% in 1 month! AbbVie's licensing deal a big positive

Shares of Glenmark Pharma have been buzzing over the past few sessions. Data show that the stock has jumped around 34% in the past 30 days.

The stock came in the spotlight last week when the pharma major announced a landmark deal between Ichnos Glenmark Innovation (IGI) and AbbVie for ISB 2001, a first-in-class CD38×BCMA×CD3 trispecific antibody.

On July 11, 2025, IGI Therapeutics SA, a wholly owned subsidiary of New York-based Ichnos Glenmark Innovation, Inc. (IGI), and AbbVie announced an exclusive licensing agreement for IGI’s lead investigational asset, ISB 2001, developed using IGI’s proprietary BEAT® protein platform, for oncology and autoimmune diseases.

Under the terms of the agreement, AbbVie will receive exclusive rights to develop, manufacture, and commercialise ISB 2001 across North America, Europe, Japan, and Greater China. Subject to regulatory clearance, IGI will receive an upfront payment of $700 million and is eligible to receive up to $1.225 billion in development, regulatory, and commercial milestone payments, along with tiered, double-digit royalties on net sales.

Ichnos Glenmark Innovation (IGI) is an alliance between Ichnos Sciences Inc. and Glenmark Pharmaceuticals.

ISB 2001 is a novel type of cancer drug that is used to treat multiple myeloma, a type of blood cancer. It is a trispecific antibody, meaning it can bind to three different targets on cancer cells and immune cells.

AbbVie is a global biopharmaceutical company that focuses on discovering and delivering innovative medicines and solutions to address complex health issues.

What does this deal mean?

S&P Global Ratings on Thursday said Glenmark Pharmaceuticals will turn net cash positive on its licensing deal with AbbVie Inc.

The agreement will further strengthen the company's financial position and liquidity, reversing results that led to a reported net debt of ₹4.9 billion last year, it said in a statement.

"Following the transaction, we expect Glenmark's adjusted debt to decline to Indian rupee (INR) 10 billion-11 billion in fiscal 2026," S&P Global Ratings said.

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 ₹28 billion in fiscal 2025, compared with ₹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 ₹12 billion-₹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, S&P Global noted.

HSBC views

HSBC, according to news reports, said the AbbVie deal was "transformative". The global financial entity estimated a potential Net Present Value of ₹320 per share for the ISB 2001 deal alone. HSBC also notes the strong efficacy and safety data from the active doses of the Phase 1 dose-escalation studies, further validating the potential of ISB 2001.

The analysts at HSBC expect Glenmark to deliver better sales growth for the India segment and improved profitability, with EBITDA margins expected to expand by over 23% by fiscal 2027.

About Glenmark Pharma

Glenmark Pharma shares are a part of the BSE500 universe.

Glenmark Pharmaceuticals Limited is a research-led, global pharmaceutical company with a focus on branded generics and over-the-counter (OTC) segments, particularly in dermatology, respiratory, and oncology.

The company has a global presence, with manufacturing facilities in India, Argentina, the US, and the Czech Republic and operations in over 80 countries.