Under the terms of the agreement, AbbVie has secured exclusive rights to develop and commercialize ISB 2001 in North America, Europe, Japan, and Greater China. Glenmark’s subsidiary, Ichnos Glenmark Innovation (IGI), is set to receive an upfront sum of $700 million and stands to earn up to $1.22 billion in milestone payments based on the progress of the candidate.
“This is possibly the biggest deal by an Indian company in the biotechnology space,” said Shrikant Akolkar, an analyst at brokerage firm Nuvama.
The announcement led to broader gains across the Indian pharmaceutical sector, with companies like Sun Pharmaceutical Industries Ltd. and Biocon Ltd. also seeing a rise in share value following the news.
According to Nomura Holdings Inc., the financial backing from this agreement is expected to enable IGI to significantly increase its research and development efforts. The brokerage also noted the possibility of Glenmark exploring an initial public offering for IGI in the near to medium term. In its assessment, Nomura highlighted that prior to this development, the company’s innovation-related efforts had generally been viewed unfavorably, with analysts attributing negative value to its R&D operations.
Several brokerages adjusted their outlooks for Glenmark’s stock in response to the deal. Motilal Oswal increased its price target to 2,430 rupees from 1,690 rupees, marking the highest target among nine analysts currently tracking the stock. The median price estimate remains at 1,665 rupees, below current trading levels. Analysts, on average, maintain a “buy” rating on the stock.
Kunal Randeria of Axis Capital referred to the agreement as “a landmark deal in Indian pharma and substantially ahead of our elevated expectations.” He revised Glenmark’s target price to 2,300 rupees, predicting a 21% increase from the previous close and continued stock revaluation.
As of now, Glenmark is the leading performer on the 20-member pharma index in 2025, with a year-to-date increase of 30%, compared to a 4.8% decline in the overall sub-index. The company’s stock has climbed approximately 70% since its February low.
Abhilash Pagaria from Nuvama Wealth Management indicated that this stock movement could position Glenmark for potential inclusion in MSCI’s standard index during its upcoming August review.
HSBC analysts, including Damayanti Kerai, increased their target price for Glenmark to 2,275 rupees, citing improved R&D funding, a stronger India business outlook, and enhanced confidence in the company’s innovation platform.
