Glenmark Pharma share price hits 10% upper circuit on unit's cancer licensing deal with AbbVie

Shares of Glenmark Pharmaceuticals were locked at a 10% upper circuit in early trade on Friday, July 11, to hit a fresh all-time high of ₹2,094 apiece. The rally followed the company’s announcement on Thursday that its innovation arm, Ichnos Glenmark Innovation (IGI), had signed an exclusive licensing agreement with AbbVie for IGI’s lead investigational asset, ISB 2001 for use in oncology and autoimmune diseases, thereby adding to the U.S. firm’s oncology portfolio.

Under the terms of the agreement, IGI partners with AbbVie and grants exclusive rights to globally develop, manufacture, and commercialize ISB 2001 across North America, Europe, Japan, and Greater 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, as per the company's exchange filing.

ISB 2001 is a unique trispecific T-cell engager that targets BCMA and CD38 on myeloma cells and CD3 on T cells, and it is currently being tested in Phase 1 clinical trials for multiple myeloma that has come back or does not respond to treatment.

Subject to regulatory clearance, IGI will receive 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.

Commenting on the development, Cyril Konto, M.D., President, Executive Director, and CEO of IGI, said, "Our collaboration with AbbVie and Glenmark reflects IGI’s mission to accelerate access to transformative multispecifics™ for patients worldwide. AbbVie’s reach in major markets, combined with Glenmark’s commercial strength in emerging markets, creates complementary access pathways for ISB 2001, a trispecific T-cell engager with promising potential in multiple myeloma.”

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