Nomura maintained its ‘Neutral’ rating on Glenmark Pharmaceuticals, with a target price of Rs 1,500, which implies a downside of 25.7% from the current market price. On September 24, 2025, Glenmark Pharma announced an in-licensing agreement with Hengrui Pharma, a Hong Kong-based pharma firm, for Trastuzumab Rezetecan, which is an oncology ADC (antibody drug conjugate) drug. Glenmark will obtain exclusive rights to develop and commercialise the product largely in India and select emerging markets.
Nomura on Glenmark Pharma: Why license Trastuzumab Rezetecan?
What’s the strategy behind acquiring the license? Glenmark Pharma wants to build a branded, patented drug portfolio, and in-licensing is part of the same strategy. For that, the company, Glenmark, has in-licensed six products over the past two years, which include in-licensing from Chinese companies BeOne, Jiangsu Aplhamab, and now Hengrui.
Coming back to Trastuzumab Rezetecan – According to Nomura, Glenmark Pharma is likely to launch Trastuzumab Rezetecan in FY29, and peak sales may reach up to $250 million. But the question is, why launch by FY29? Glenmark will commence clinical development as required for regulatory approvals in the near term, and assuming three years for clinical trials and registration. That’s why Nomura expects the product to be launched in the licensed emerging markets in FY29.
“We estimate Glenmark will make investments up to $60 million in developing Trastuzumab Rezetecan until its commercial launch. This includes upfront payment of $18 million, pre-approval milestone payout of $20 million and an additional $20 million in clinical development,” said Nomura.
Nomura on Glenmark Pharma: Sales of other products
With regards to sales of other products, in the emerging markets, Enhertu and Kadcyla are set to achieve sales of $650 million and $800 million in 2025, according to Nomura. “We expect Enhertu’s peak sales to $1 billion in emerging markets. Assuming a 25% market share, we estimate peak sales at $250 million for Glenmark,” said the brokerage firm.
According to the licensing agreement, the milestone payout can be up to $1.1 billion. “We think such a payout is unlikely, unless the revenues far exceed our expectations. For $250 million peak revenues, a milestone payout of $100-200 million is likely, in our view,” added Nomura.