Glenmark surges 20% after major drug licensing deal with AbbVie
Glenmark Pharmaceuticals shares surged following a significant licensing agreement. Ichnos Glenmark Innovation partnered with AbbVie for a drug targeting oncology and autoimmune diseases. Glenmark will receive $700 million upfront. Potential miles...
By ET Bureau |
Agencies
The company will also earn a share of future sales, Glenmark said in its exchange filing on Thursday.
Mumbai: Shares of Glenmark Pharmaceuticals rallied as much as 20% and made a fresh lifetime high on Friday after it announced an exclusive licensing deal between Ichnos Glenmark Innovation (IGI) and AbbVie to develop and commercialise IGI's drug used for oncology and autoimmune diseases.
The stock ended at ₹2,175.0 on Friday, up 14.3%. It made a record high of ₹2,284.8 during the day.
"The deal marks a turning point for Glenmark and could lead to significant re-rating of the stock," said Arijit Malakar, equity research analyst at Ashika Stock Broking. "With the drug currently undergoing trials and expected to be commercialised in about three years, Glenmark stands to earn annual royalties of $500 million or approximately ₹4,250 crore, nearly double its current Ebitda (earnings before interest, taxes, depreciation, and amortisation)," he said.
Ichnos Glenmark Innovation (IGI), Glenmark's research arm, will get $700 million upfront and could receive up to $1.2 billion more as the drug reaches certain development and sales milestones. The company will also earn a share of future sales, Glenmark said in its exchange filing on Thursday.
