Glenmark’s R&D bet pays off handsomely with AbbVie deal, vindicating backer-in-chief Saldanha

Just a year ago, the company had to sell some assets to pare debt and clean up its balance sheet. Its cash-heavy model  didn’t sit too well with investors either.

And then ISB 2001 happened.

ISB 2001 targets relapsing multiple myeloma, a form of blood cancer that affects white blood cells. The drug has the potential to address a significant unmet need, especially in cases where patients have exhausted other lines of treatment. It is estimated that globally between 200,000 and 300,000 patients suffer from multiple myeloma.

The milestone payments hinge on successful clinical trials such as completion of Phase 1, 2, and Phase 3, regulatory nods and commercial outcomes such as launches in specific markets, sales thresholds or market share.

Globally, the ISB 2001 deal ranks third-largest in terms of upfront payment size for a multi-specific or bispecific asset in the last two years, placing it in elite company alongside two agreements involving China’s 3SBio licensing its PD-1 asset to Pfizer for $1.25 billion, with milestone payments potentially reaching $4.8 billion plus royalties on sales.

The other is BioNTech – BMS licensing deal worth $11.1 billion, including upfront and milestone payments.

High risk, high cash burn

Glenmark's high-risk, high-cash-burn research and development model didn't resonate well with most Indian investors and analysts.

The Mumbai-based firm has an impressive track record of building brands domestically and has a sizeable presence in the US and Europe. Nine of its brands, including Candid, Ascoril, and Telma, are among the top 300 in India by sales but the company has struggled with high debt and sub-20 EBITDA margins, way below the industry standard.

It had to sell some good assets, including its API business to Nirma in March 2024, which allowed the company to clean up the balance sheet, lowering the net debt to around Rs 400 crore.

"The challenge with India has always been that the capital markets are always short-term focused. So, there's always pressure on showing higher margins, getting better valuation, getting better market cap. And that's contrary to spending in innovation.” Saldanha said.

“Innovation is the long gestation period capital that you're putting aside every year, with a view that something will culminate down the road.”

What’s different this time?

ISB 2001, developed using IGI’s proprietary BEAT multispecific antibody platform, targets BCMA and CD38 on myeloma cells and CD3 on T cells.

It showed a 79 percent overall response rate and 30 percent complete response in heavily pre-treated multiple myeloma patients in Phase 1 trials, earning Orphan Drug Designation and Fast Track status from the US Food and Drug Administration (FDA).

Unlike previous efforts, Glenmark focused its resources on a single, high-potential asset. “We shut down other programmes and bet big on ISB 2001,” said Saldanha. “All it takes is one asset to transform a company — just look at Keytruda.”

He was referring to American drug firm Merck’s Keytruda (pembrolizumab), which is the top selling cancer drug globally, generating $29.5 billion in sales in 2024 alone.

Behind the scenes

The work on licensing deal between IGI and AbbVie for ISB 2001 began in earnest in January 2025 during the JP Morgan Healthcare Conference — the global event for biotech dealmaking.

Following the presentation of promising Phase 1 data at American Society of Hematology (ASH) in late 2024, IGI scouting for potential partners.

Compelling clinical data — a 79 percent overall response rate and 30 percent complete response —sparked interest among several global pharma companies.

Negotiations with AbbVie intensified after the ASCO 2025 presentation, which further validated ISB 2001’s efficacy and safety profile.

Over the next six months, IGI and AbbVie engaged in rigorous due diligence, contracting, and strategic discussions, culminating into licensing deal.

What next?

AbbVie will now lead global development and commercialisation in North America, Europe, Japan, and Greater China. Glenmark retains rights for Emerging Markets, including India, Latin America, and Africa.

The molecule remains in Phase 1 dose expansion, with commercialisation expected in four to five years, subject to regulatory progress.

Glenmark will remain deeply involved through joint committees and retain commercial rights in key geographies, Saldanha said. “It’s a partnership not a hands-off,” he said.

The Rs 6,000 crore upfront payment will make IGI self-funded for at least three years, reducing pressure to launch  IPO immediately. “We’ll time the IGI IPO based on market conditions,” Saldanha noted. “But we’re now debt-free and have the flexibility to reward shareholders.”

While no acquisitions are planned yet, Glenmark will continue investing in innovation. “We’re not stepping away from R&D. We’ll do globally relevant work,” he said.

Beyond ISB 2001

IGI’s pipeline includes ISB 2301, another multi-specific antibody targeting NK cells, which is expected to enter clinical trials next year. Two monoclonal antibody programmes in dermatology are also partnered and progressing. “We’re building a portfolio, not just a one-hit wonder,” said Saldanha.

“We’ve always believed in moving up the value chain,” said Saldanha. “This is just the beginning.”