Glenmark Pharma's wholly owned subsidiary, Ichnos Glenmark Innovation (IGI) has received an upfront payment of $700 million from NYSE-listed AbbVie for a molecule used in cancer treatment, the company informed exchanges, sending the shares higher by over two percent in early trade on September 9.
"The payment is in accordance with the agreed contractual terms and is being made towards an exclusive global licensing agreement for IGI’s lead investigational molecule- ISB 2001 - across North America, Europe, Japan, and Greater China markets," Glenmark Pharma said.
Earlier this year, Ichnos Glenmark Innovation (IGI) and AbbVie had announced an exclusive Global Licensing
Agreement for ISB 2001, which is a Trispecific Antibody for Multiple Myeloma. Under the terms of the
first-of-its-kind agreement for an Indian biotech player, AbbVie has exclusive rights to develop, manufacture, and commercialize ISB 2001 in North America, Europe, Japan, and Greater China.
Read More: A $2 billion shot in the arm: Why Glenmark’s AbbVie deal could trigger re-rating
The exclusive global licensing pact features $700 million as upfront payment and $1.225 billion in milestones, in addition to tiered, double-digit royalties on net sales.
In an interview with Moneycontrol on July 14, Glenn Saldanha, Chairman and Managing Director of Glenmark said the deal with AbbVie has 'de-risked' the company and made the R&D unit self-sufficient and self-sustaining for at least 3-4 years.
"Effectively, by partnering, we've passed on the risk and de-risked ourselves. We've taken some money off the table. Crucially, we've retained the rights for emerging markets, including India. So, we've basically de-risked part of the asset by partnering with a big pharma and effectively monetising it," Glenn Saldanha said.
Glenmark is India’s 11th largest pharma company by market capitalisation and 12th in terms of FY25 revenue.
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