Glenmark Pharmaceuticals Share Price Target at Rs 2,430: Motilal Oswal Research
Motilal Oswal has reiterated its BUY rating on Glenmark Pharmaceuticals, setting a compelling price target of Rs 2,430—implying a robust 28% upside from current levels. This bullish stance follows Glenmark’s landmark global licensing agreement with AbbVie for its innovative cancer therapy, ISB-2001. The deal not only validates Glenmark’s R&D prowess but also unlocks significant commercial potential, positioning the company at the vanguard of oncology innovation. Investors are advised to closely monitor the evolving financials, blockbuster potential of ISB-2001, and the company’s strategic reset, all of which underpin a strong growth trajectory through FY27.
Motilal Oswal’s Conviction: BUY Call and Strategic Target
Motilal Oswal’s research team has issued a decisive BUY recommendation on Glenmark Pharma, with a 12-month target price of Rs 2,430. This reflects confidence in the company’s ability to unlock value through innovation and strategic partnerships. The current market price hovers near Rs 1,904, offering significant headroom for appreciation.
AbbVie Deal: Transformative Milestone for Glenmark
Glenmark’s subsidiary, Ichnos Glenmark Innovation (IGI), has inked an exclusive licensing pact with U.S. biopharma giant AbbVie for ISB-2001, a first-in-class trispecific T-cell engager aimed at relapsed/refractory multiple myeloma. The agreement grants AbbVie exclusive rights across North America, Europe, Japan, and Greater China, while Glenmark retains rights in emerging markets. IGI will receive an upfront payment of $700 million (contingent on regulatory approvals), with potential milestone payments up to $1.2 billion and tiered, double-digit royalties on global sales.
Deal Ranks Among Industry’s Largest Upfront Payments
This transaction is the fourth-largest global licensing deal in pharma by upfront payment, underscoring the strategic significance of ISB-2001. Oncology continues to dominate the licensing landscape, with antibody-drug conjugates (ADCs), bispecifics, and protein degraders commanding the highest premiums. The deal cements Glenmark’s reputation as a formidable innovator in the oncology space.
ISB-2001: A Scientifically Superior Candidate
ISB-2001 distinguishes itself with a trispecific mechanism targeting BCMA and CD38 on myeloma cells and CD3 on T-cells, designed to overcome resistance seen in BCMA-only therapies. Early Phase 1 data reveal an overall response rate (ORR) of 79% and a complete/stringent complete response (CR/sCR) rate of 30% at active doses, with a favorable safety profile. This positions ISB-2001 ahead of several approved and experimental therapies in the relapsed/refractory multiple myeloma space.
Blockbuster Potential: Commercial Prospects and Market Dynamics
The market for RRMM therapies is expanding rapidly, with blockbuster drugs like Darzalex (annual sales of $9 billion) setting the benchmark. CAR-T and bispecific therapies are the fastest-growing segments, and ISB-2001’s differentiated profile could enable it to capture substantial market share. Approximately 160,000–180,000 new multiple myeloma cases are diagnosed globally each year, ensuring a large addressable market.
Financial Trajectory: Robust Growth Outlook
Motilal Oswal projects Glenmark’s consolidated revenue, EBITDA, and PAT to grow at a CAGR of 11%, 17%, and 20% respectively over FY25–27. The company’s earnings are expected to surge, driven by strong performance across domestic, U.S., EU, and rest-of-world segments, as well as margin expansion. The research house assigns a 27x forward earnings multiple, factoring in a net present value (NPV) addition of Rs 470 per share from the AbbVie deal.
Key Financial Metrics and Valuation Table
| Metric | FY25E | FY26E | FY27E |
|---|---|---|---|
| Sales (Rs bn) | 133.2 | 146.2 | 162.9 |
| EBITDA (Rs bn) | 23.7 | 28.0 | 32.7 |
| Adj. PAT (Rs bn) | 13.5 | 16.3 | 20.5 |
| Adj. EPS (Rs) | 47.7 | 57.9 | 72.6 |
| RoE (%) | 16.1 | 17.0 | 18.1 |
| P/E (x) | 40.1 | 33.1 | 26.3 |
| Target Price (Rs) | 2,430 | ||
Shareholding Structure and Market Sentiment
Promoters hold approximately 46.7%, with mutual funds and foreign institutional investors (FIIs) increasing their stakes to 14.6% and 23.2% respectively as of March 2025. The stock has witnessed a surge in institutional interest, reflecting growing confidence in Glenmark’s innovation-led growth strategy.
Strategic Reset and R&D Focus
Glenmark’s strategic reset involves deleveraging, strengthening its ANDA pipeline for the U.S., and revitalizing its domestic formulation business. R&D expenditure is expected to remain stable as a percentage of sales, with a focus on high-value, innovative assets. The company’s pipeline is well-positioned to deliver sustained growth and margin expansion.
Key Technical Levels for Glenmark Pharma
Current Price: Rs 1,904
52-Week Range: Rs 1,275 – Rs 1,920
Immediate Support: Rs 1,850
Resistance Levels: Rs 2,000 / Rs 2,200
Target Price: Rs 2,430 (12-month horizon)
Stop Loss for Investors: Rs 1,750
A New Era for Glenmark—Innovation at the Core
Motilal Oswal’s BUY call on Glenmark Pharma is underpinned by the transformative AbbVie deal, a robust innovation pipeline, and a strong financial outlook. Investors seeking exposure to India’s burgeoning pharmaceutical sector should consider Glenmark as a high-conviction bet, with significant upside potential as the company enters a new era of global relevance and scientific leadership.
