Glenmark Pharma shares rise as arm receives an upfront payment of $700 mn

Glenmark Pharmaceuticals shares rose 2.7 per cent on Tuesday and logged an intra-day high at ₹2,109 per share on BSE. At 10:40 AM, on BSE, Glenmark Pharmaceuticals’ share price was trading 2.01 per cent higher at ₹2,094 per share. In comparison, the BSE Sensex was up 0.22 per cent at 80,963.14.

 

The market capitalisation of the company stood at ₹59,092.85 crore. The 52-week high of the stock was at ₹2,286.15 per share, and the 52-week low was at ₹1,274.7.  READ STOCK MARKET LIVE UPDATES TODAY

Why were Glenmark Pharma shares in demand?

The buying on the counter came after the company’s subsidiary Ichnos Glenmark Innovation received an upfront payment of $700 million from AbbVie.

 

 

The payment was in accordance with the agreed contractual terms and was made towards an exclusive

global licensing agreement for  Ichnos Glenmark Innovation’s lead investigational asset, across North America, Europe, Japan, and Greater China markets.

 

Glenn Saldanha, Chairman and Managing Director, Glenmark Pharmaceuticals, in its Q1 note said: “The recent IGI–AbbVie global licensing agreement for ISB 2001 is a strong validation of our innovation capabilities. We remain confident in our strategy to drive growth across our markets while advancing our branded, specialty, and innovative products.”

 

That apart, recently, Glenmark Pharmaceuticals announced the initiation of a multi-country (ex-China) Phase 3 Clinical Trial for Envafolimab, a novel subcutaneous PD-L1 inhibitor, in patients with resectable Stage III Non-Small Cell Lung Cancer (NSCLC) in the neoadjuvant/adjuvant setting. The company has received approval from the Drugs Controller General of India (DCGI) to begin patient enrollment and dosing in the country.  ALSO READ | Morepen Laboratories shares jump 6%; what's driving buying interest? 

In parallel, Glenmark has submitted a Clinical Trial Application (CTA) in Russia and is preparing to open additional clinical trial sites in Brazil and Mexico, further expanding the global footprint of this pivotal study

 

In Q1, Glenmark Pharmaceuticals reported an 86 per cent year-on-year decline in consolidated net profit to ₹46.8 crore for the first quarter of FY26. Revenue from operations rose marginally by 0.6 per cent to ₹3,264 crore. Sequentially, profit jumped 917 per cent, while revenue was up 0.2 per cent. 

 

The sharp profit fall was due to a provision of $37.75 million made by Glenmark to settle a US antitrust and consumer protection lawsuit with a putative direct purchaser class, subject to court approval.

 

Excluding this, profit before tax and exceptional expenses stood at ₹418.8 crore, down 9.4 per cent year-on-year compared with ₹462 crore last year.