INSUBCONTINENT EXCLUSIVE:
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.
AgenciesIchnos 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
