Glenmark Pharmaceuticals is entering a new phase of strategic transformation, fuelled by a $700 million upfront payment from AbbVie for its multi-specific antibody asset ISB 2001. Chairman and managing director Glenn Saldanha said the company is now focused on innovation, therapeutic specialization, and disciplined capital deployment.
“We are just trying to regroup… one wrong move takes you back by four or five years,” Glenn Saldanha said, emphasizing caution in deploying the AbbVie funds., in an interview to Moneycontrol.
The company has ruled out mergers and acquisitions in the near term, opting instead to strengthen its core innovation engine and expand its licensing portfolio.
“M&A is not on the cards. At least for the next year, year, two years, we won’t do anything in the M&A space,” Saldanha confirmed.
Glenmark’s strategic focus will be centered on three therapeutic areas such as respiratory, oncology, and dermatology. These segments are expected to drive branded and innovative product growth globally.
“We are already about 60% branded today… that number will keep escalating,” he said. “We are more interested in globally dominating certain therapies.”
De-risking R&D
Glenmark's high-risk, high-cash-burn R&D model has been a cause of concern for Indian investors, as they prefer safer bets with better return ratios. The AbbVie deal relieves Glenmark of the financial burden of funding its US-based subsidiary, Ichnos Glenmark Innovation (IGI), and may give the drugmaker some breathing room and flexibility.
“IGI was heavily dependent on Glenmark for funding… they burn about $70 million a year,” Saldanha said. “Now, with $700 million coming in, they are self-sufficient plus self-sustaining.”
“We’ve effectively de-risked part of the asset by getting a big pharma and monetising it,” Saldanha said. “We keep in-licensing products and expanding, leveraging our distribution globally,” he added.
Saldanha said the company will be pursuing branded and innovation driven model, as it moves up the value chain from generics.
“We are already about 60% branded today… that number will keep escalating,” Saldanha said.
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