Glenmark Pharma shares rally 14% on AbbVie boost; analysts hike targets to Rs 2,800

Time of India

4 days ago

Glenmark Pharmaceuticals
' 14% jump on Friday may still have a further 29% upside, as the stock finds itself in a sweet spot on technical charts, according to multiple market experts. They recommend a 'buy on dips' strategy, with a price target of up to Rs 2,800.
The stock surged 20% in early trade to hit a lifetime high of Rs 2,284.80, before paring some gains as the session progressed.
The rally was triggered after the company announced that its step-down, wholly owned subsidiary, Ichnos Glenmark Innovation (IGI), had signed an exclusive global licensing agreement with US-based AbbVie for its experimental cancer drug, ISB 2001.
Commenting on the price action, Anuj Gupta, Director at Ya Wealth Global Research, said the stock appears poised for a continued rally.
'Strong technical structure supported by substantial volumes bodes well for further upside. We expect it to rise further, especially as the Trump tariff stance on pharma is seen as positive for US-based pharmaceutical brands,' he said.
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Gupta added that Glenmark has a significant presence in the US pharmaceutical market.
In his view,
Glenmark Pharma shares
may test levels of Rs 2,600 to Rs 2,800 in the short term, implying a potential upside of 29% from the current level of Rs 2,172.80. He sees strong support at Rs 1,800 and recommends a buy-on-dips strategy.
Nilesh Jain, Vice President – Equity Research (Technical and Derivatives) at Centrum Broking, echoed a similar sentiment, noting that the stock's structure remains positive on charts despite Friday's sharp rally. While he does not currently see an ideal risk-to-reward setup, he believes a near-term target of Rs 2,200 is achievable.
The stock has emerged from a breakaway gap, Jain added — a technical pattern marked by a breakout accompanied by a wide price gap, often signaling the start of a strong uptrend. According to him, Rs 2,100 would be a more favourable level to enter the stock.
Meanwhile, brokerage Motilal Oswal sees a 28% upside from Thursday's closing price of Rs 1,904 and has reiterated its 'Buy' rating on Glenmark Pharma. 'We assign a 27x 12-month forward earnings multiple to arrive at a sum-of-the-parts (SOTP) valuation of Rs 2,430,' the brokerage said, adding that the AbbVie deal signals a new era for the company.
About ISB 2001
ISB 2001, currently in Phase 1 clinical trials for relapsed or refractory multiple myeloma, will be jointly developed under the agreement. AbbVie will hold exclusive rights to develop, manufacture, and commercialise the drug in North America, Europe, Japan, and China. Glenmark will retain rights for emerging markets, including Asia (excluding Japan and China), Latin America, Russia/CIS, the Middle East, Africa, Australia, New Zealand, and South Korea.
Under the agreement, IGI Therapeutics SA — a subsidiary of Ichnos Glenmark Innovation — will receive a $700 million upfront payment and is eligible for up to $1.225 billion in milestone payments, along with tiered, double-digit royalties on net sales.
The US FDA granted ISB 2001 orphan drug designation in July 2023 and fast-track status in May 2025 for treating relapsed or refractory multiple myeloma.
'Multispecifics like trispecific antibodies represent a new frontier in immuno-oncology,' said Roopal Thakkar, EVP and CSO at AbbVie. 'This partnership reflects our commitment to advancing novel therapies for patients with multiple myeloma, where unmet needs remain.'
Cyril Konto, MD, President and CEO of IGI, added:
'This agreement marks a defining milestone in IGI's journey. Our partnership with AbbVie accelerates ISB 2001's path to patients and strengthens our focus on the next generation of BEAT®-enabled assets.'