Glenmark hits new high; zooms 37% in 2 months; what's driving pharma stock?

Business Standard

10-07-2025

Since June 25, in 12 trading days, the stock has surged 12% after the company launched the lung cancer treatment drug Tevimbra in India, following the approval by the CDSCO.
Glenmark Pharmaceuticals share price
Shares of Glenmark Pharmaceuticals hit a new high of ₹1,886.40, as they rallied 4 per cent on the BSE in Thursday's intra-day trade in an otherwise weak market. In comparison, the BSE Sensex was down 0.36 per cent at 83,230 at 11:39 AM.
Since June 25, in the past 12 trading days, the stock price of the pharmaceutical company has surged 12 per cent after the company launched the lung cancer treatment drug Tevimbra in India, following the approval by the Central Drugs Standard Control Organisation. In the past two months, the stock price of Glenmark has zoomed 37 per cent.
What's driving Glenmark stock price?
Glenmark Pharmaceuticals on June 24 said it launched the lung cancer treatment drug Tevimbra in India, following the approval by the Central Drugs Standard Control Organisation (CDSCO).
Tevimbra is developed by BeiGene (now BeOne Medicines), a global oncology leader. This launch marks Glenmark's first foray into immune-oncology in India and is a major milestone in expanding its innovative oncology portfolio. Immuno-oncology offers a promising future for the treatment of various types of advanced cancers which are difficult to treat, the company said in a regulatory filing.
Glenmark on June 18 said that the United States Food & Drug Administration (USFDA) conducted a GMP inspection at the company's manufacturing facility situated in Monroe, North Carolina, US from 09 June 2025 to 17 June 2025.
At the end of the inspection, the company was issued a Form 483 with five (5) observations. All the observations are procedural in nature. There was no observation related to data integrity reported. The company will work in close collaboration with the agency to address the observations and will respond to the USFDA within the stipulated timeline, Glenmark said.
Brokerages view on Glenmark
While the January-March quarter (Q4FY25) performance was weak - impacted by delayed product launches, a subdued respiratory season, and compliance-related costs at the Monroe facility - analysts at Choice Equity Broking believe Glenmark is well-positioned for a rebound.
Growth is expected to be driven by a robust pipeline in respiratory and injectable segments across existing markets, along with the expansion of key global brands into new geographies. Management has guided for 10 - 12 per cent revenue growth in FY26. Furthermore, enhanced in-house manufacturing and cost optimization at Ichnos Glenmark Innovation (IGI) are likely to support EBITDA margin improvement. However, currently, the stock trades above the brokerage firm's target price of ₹1,670 per share.
According to Motilal Oswal Financial Services, on the innovation front, the potential for ISB2001 continues to improve with fast-track designation for relapsed/refractory Multiple Myeloma (MM). Glenmark delivered considerable margin expansion (780bp YoY) in FY25, aided by healthy growth in the European business and a reduction in R&D spending.
Glenmark strengthened its differentiated offerings in the US generics segment with products like g-Flovent. With the gradual recovery in domestic formulations and superior execution in the EU/ROW markets, the brokerage firm expects 11 per cent/18 per cent/24 per cent sales/EBITDA/ PAT over FY25-27.
About Glenmark Pharmaceuticals
Glenmark Pharmaceuticals is a research-led, global pharmaceutical company, having a presence across Branded, Generics, and OTC segments; with a focus on therapeutic areas of respiratory, dermatology and oncology.