Glenmark Pharmaceuticals: Turning the Financial Tide with AbbVie Licensing Deal
Glenmark Pharmaceuticals is set to become net cash positive through its licensing agreement with AbbVie Inc. This move aims to improve the company's financial stability and reduce its debt. The deal focuses on the licensing of ISB 2001 for cancer and autoimmune treatment, with promising revenue growth projections.
- Country:
- India
In a strategic maneuver, Glenmark Pharmaceuticals is projected to turn net cash positive following a licensing agreement with AbbVie Inc., as per S&P Global Ratings. This partnership is poised to bolster Glenmark's financial position and liquidity, recovering from the previous year's net debt of Rs 4.9 billion.
Announced on July 11, 2025, through its subsidiary IGI Therapeutics SA, Glenmark secured an exclusive licensing deal with AbbVie for ISB 2001. This lead investigational asset is intended for the treatment of cancer and autoimmune diseases, signaling potential revenue surge.
Despite higher-than-anticipated working capital outflow causing negative cash flow in fiscal 2025, the deal is expected to lower Glenmark's adjusted debt to INR 10-11 billion in fiscal 2026. S&P Global anticipates revenue growth of about 10% in fiscal 2026 and sustained annual growth thereafter, with stable EBITDA margins.
(With inputs from agencies.)
Google News