Glenmark arm inks $700 million licensing deal with US-based AbbVie

IGI Therapeutics, a wholly owned subsidiary of Glenmark, has licensed its cancer and autoimmune drug ISB 2001 to AbbVie for an upfront payment of $700 million

In what can be called a landmark deal for Indian pharma and research, IGI Therapeutics SA, a wholly-owned subsidiary of New York-based Ichnos Glenmark Innovation Inc. (IGI), signed an exclusive licensing agreement with US-based AbbVie for its oncology and autoimmune diseases asset ISB 2001 for an upfront payment of $700 million (₹6000 crore) and milestone based payments of up to $1.2 billion (close to ₹10,000 crore).

 

ISB 2001, an investigational asset, has been developed using IGI’s proprietary BEAT protein platform for oncology and autoimmune diseases.

 

The US Food and Drug Administration had granted ISB 2001 orphan drug designation in July 2023 and fast-track designation in May for the treatment of relapsed or refractory myeloma patients. Phase-1 trial in human study is underway, and dose escalations are being tested now. The company feels that due to its mechanism of action, ISB 2001 can also potentially be a viable therapeutic option for various autoimmune indications.

 

 

Glenmark shares have risen 38 per cent in the last three months, and on Thursday touched a fresh all-time high of ₹1919 apiece.

 

AbbVie will have exclusive rights to develop, manufacture, and commercialise ISB 2001 across North America, Europe, Japan, and Greater China.

 

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.

 

Glenmark will retain the rights for emerging markets and India. 

 

IGI is a wholly-owned subsidiary of Mumbai headquartered Glenmark and speaking to reporters here chairman and managing director Glenn Saldanha said that this deal puts India in the world map.

 

“There is no parallel to ₹6000 crore upfront payment,” he said, adding that the deal ranks among some of the top out-licensing deals in the antibody space globally.

 

Notable recent deals include 3SBio Inc and Pfizer’s $6 bn licensing deal for global rights (excluding China) to develop, manufacture and commercialise 3SBio’s bispecific antibody SSGJ-707.

 

This deal involved an upfront payment of $1.2 bn to 3SBio.

 

Roopal Thakkar, MD, executive vice-president, research and development and chief scientific officer, AbbVie said, “Multispecifics including trispecific antibodies represent a new frontier in immuno-oncology with the potential to deliver deeper, more durable responses by engaging multiple targets simultaneously.”

 

The company claims that ISB 2001 is currently the only trispecific antibody of its kind in development with clinical responses seen even in patients previously treated with BCMA CAR-T therapy. While highlighting the promise of this asset, the company maintains that trispecifics are just one part of a broader therapeutic strategy and not a standalone solution.

 

Other pipeline candidates like ISB 2301 and beyond are also multispecific, meaning they are tri- or tetra specific in design. Although several bispecific antibodies are already commercially available, the company states that there are currently no trispecific antibodies approved or on the market, positioning ISB 2001 as a potential first-in-class therapy.

 

Glenmark expects the molecule to transform the multiple Myeloma space, which can become a $50 billion market by 2030. The asset may take another 4-5 years to be commercialized if timelines are met.

 

ISB 2001’s competitors are Pfizer and J&J’s already launched drugs for multiple myeloma.

 

The road ahead for IGI is likely to be an IPO, however, nothing immediately is on the cards, Saldanha said.

 

The research arm is self-funded for at least the next three-four years if not more as it uses $70 mn annually.

 

Saldanha also said that the ₹6000 crore would definitely be used to fund IGI’s pipeline of investigational assets and also some amount would be paid as dividend to Glenmark shareholders. Glenmark had a net debt of ₹400 crore before the deal and Saldana said they would be net-cash now.

 

Saldanha has fought a long battle to pursue his ambitions around innovation, and has already tasted success with several key partnerships it forged with players like Almirall and Astria for innovation assets. 

 

Glenmark has had its tryst with managing R&D spending, its debt and cash flows over the years.

 

In 2019, Glenmark had spun off its research unit into a separate subsidiary to de-risk its investments, bring down debt and improve focus on base business. Earlier, the cash flows from the base business were deployed in the high-risk innovation programme, which several analysts had felt was a drag on shareholder value.

 

Motilal Oswal analyst Tushar Manudhane noted recently that Glenmark is on track to optimise R&D spending on its innovation assets. From 8 per cent (₹800 crore) of total sales in FY19, the company has reduced innovation R&D spend to 4.5 per cent (₹600 crore) in FY24, and further to 3.5 per cent of sales in 9MFY25, Manudhane had said.

 

IGI had entered into an exclusive global licensing agreement for another innovation asset ISB 880 in autoimmune diseases with Spanish firm Almirall in December 2021.

 

Glenmark got $320 million for upfront payment, development, regulatory and sales milestone payments, plus tiered royalties on global sales. In another major deal, IGI entered an exclusive global licensing agreement for ISB 830 and its follow-on ISB 830-X8 (monoclonal antibody for atopic dermatitis) with Astria Therapeutics in October 2023.

 

In January 2025, Astria announced initiation of a phase-1 clinical trial of STAR0310, a potential best-in-class OX40 antagonist for the treatment of Atopic Dermatitis. Glenmark received Euro 20.8 million for upfront payment, plus development, regulatory and sales milestone payments, and tiered royalties on global sales.