Image showing a pharmaceuticals production unit. For representational purposes.
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New Delhi: Shares of Glenmark Pharmaceuticals Ltd on Friday jumped 10 per cent after the firm said it has signed a deal with AbbVie to commmercialise its underdevelopment drug aimed to treat cancer and autoimmune diseases in an up to $2 billion deal, one of the largest transactions in the pharma sector.
The stock surged 9.99 per cent to hit its 52-week high as well as the upper circuit limit of Rs 2,095.65 on the BSE.
At the NSE, the stock zoomed 10 per cent to Rs 2,094.40 -- its 52-week high as well as upper circuit level.
Glenmark Pharmaceuticals' arm Ichnos Glenmark Innovation has signed the deal for its lead investigational asset 'ISB 2001'.
ISB 2001, targeted for the treatment of cancer and autoimmune diseases, has been developed using Ichnos Glenmark Innovation's (IGI) proprietary 'BEAT protein platform' for oncology and autoimmune diseases, Glenmark Pharmaceuticals said in a regulatory filing.
Under the agreement, IGI grants AbbVie exclusive rights to globally develop, manufacture, and commercialise ISB 2001 across North America, Europe, Japan, and Greater China.
On the other hand, Glenmark Pharmaceuticals will develop, manufacture and lead commercialisation of ISB 2001 across emerging markets, including the rest of Asia, Latin America, the Russia/CIS region, the Middle East, Africa, Australia, New Zealand and South Korea, the company said.
"Subject to regulatory clearance, IGI will receive an upfront payment of $700 million and is eligible to receive up to $1.225 billion in development, regulatory, and commercial milestone payments, along with tiered, double-digit royalties on net sales," IGI said in a statement.