Mumbai: India’s fourth-largest pharma company Glenmark Pharmaceuticals’ shares are witnessing a massive rise after the company informed the bourses about its deal with US-based AbbVie for developing and commercialising its experimental cancer drug ISB 2001, in a deal potentially worth $1.2 billion. The deal, inked by Glenmark’s Swiss-based subsidiary IGI Therapeutics SA, includes a $700 million upfront payment to develop a rival to Johnson & Johnson’s blockbuster Tecvayli cancer drug, a cure for myeloma, a type of blood cancer.
This development is perhaps the most significant landmark for an Indian biotech player, as this deal could potentially earn Glenmark about $500 million in royalties, higher than its current EBITDA at Rs.560.7 cr ($65 million).
“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.” Cyril Konto, M.D., President, Executive Director and CEO of IGI said in a press release.
“At Glenmark, we are committed to expanding access to innovative cancer treatments across Emerging Markets where unmet need and growth potential intersect,” said Christoph Stoller, President – Europe and Emerging Markets, Glenmark Pharmaceuticals. “The addition of ISB 2001 is a natural evolution of our oncology strategy. With our deep commercial footprint, strong regulatory capabilities, and experience in launching breakthrough assets like BRUKINSA® and TEVIMBRA® in India, and rights to commercialize QiNHAYO® (envafolimab), a PD-L1 checkpoint inhibitor, in Emerging Markets, we are well positioned to deliver impactful treatment option for patients with difficult-to-treat cancers through ISB 2001.” he added.
The experimental drug is currently in Phase 1 trials and its commercialisation is planned in the next 4-5 years. According to the deal, AbbVie will take over the development and commercialisation of the drug across developed markets like US, Europe, China and Japan while Glenmark will retain the commercialisation rights for India and other emerging markets.
Glenmark Pharma has been one of India’s leading R&D focused companies, with 4 R&D centres across India, US and Switzerland along with 11 manufacturing facilities in India, Europe, Argentina and the US, where almost 60% of its revenue comes from international operations.
