Glenmark outlook positive after major licensing deal, ratings affirmed

CRISIL Ratings has revised its outlook on Glenmark Pharmaceuticals Limited's long-term bank facilities from 'Stable' to 'Positive,' while reaffirming its 'Crisil AA' rating. The short-term rating remains 'Crisil A1+'. This positive revision follows Glenmark's exclusive global licensing deal with AbbVie Inc. for its lead innovation asset, ISB 2001.

Glenmark received an upfront, non-refundable payment of $700 million, with potential milestone payments of up to $1.225 billion and double-digit royalties on future net sales. This transaction is expected to significantly improve the company's financial risk profile, with proceeds largely earmarked for organic growth.

For fiscal 2025, Glenmark's revenues grew 13% year-on-year to Rs. 13,321 crore, driven by strong domestic formulations and European market traction. Operating profits remained steady at approximately 18% in Q1FY26, with overall profitability expected to gradually improve to 20-22% over the medium term, supported by moderated R&D costs and increasing contributions from branded markets.