Glenmark arm IGI licenses cancer drug to AbbVie for upfront $700 mn with $1.22 bn in milestone payment

Glenmark Pharmaceuticals Ltd on July 10 said its step-down wholly-owned subsidiary Ichnos Glenmark Innovation has signed an exclusive global licensing agreement with New York-based AbbVie for the former's investigational asset ISB 2001 for oncology and autoimmune diseases. ISB 2001 is currently in the first phase of clinical trials for patients suffering from relapsed or refractory multiple myeloma, the company said in an exchange filing.

Under the terms of agreement, AbbVie will get the exclusive right to develop, manufacture, and commercialise ISB 2001 across North America, Europe, Japan, and China while Glenmark Pharmaceuticals will develop, manufacture and lead commercialization of ISB 2001 across Emerging Markets including the rest of Asia, Latin America, the Russia/CIS region, the Middle East, Africa, Australia, New Zealand and South Korea.

The pact was signed by IGI Therapeutics SA, a wholly owned subsidiary of Ichnos Glenmark Innovation, Inc., which is a subsidiary of Glenmark Pharmaceuticals. IGI will get 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, it said in a statement.

The US Food and Drug Administration had granted ISB 2001 orphan drug designation in July 2003 and fast-track designation in May for the treatment of relapsed or refractory myeloma patients.