Well, it's definitely a big landmark deal for Glenmark as well as for the Indian pharma industry, where Glenmark has signed an out-licensing deal with global big pharma company AbbVie for one of their molecules under development for multiple myeloma. They've out-licensed it to AbbVie. It's going to be an upfront payment of $700 million, milestones of $1.2 billion going forward, and even double-digit tiered royalty payments if this molecule is successful and does come to market. We have with us Glenn Saldanha, who's really the man of the moment, to talk to us about this big landmark deal which has taken place. Glenn, thank you very much for joining in. Well, if you could just go through the finer points of this big deal which has taken place for IGI, which is your innovation subsidiary.
Thank you, Eka. So clearly this is a huge moment for us. I mean, we've been working on this for 25 years in the innovation space, and I think ISB 2001 really is a world-class asset which can be transformational for patients. From a partnering perspective, the way we've structured it is we've partnered with AbbVie for the US, Canada, Europe, China, Japan, most of the developed markets, and Glenmark will commercialize this product eventually in India and all emerging markets. So the two of us will make sure this asset is successful going forward. IGI clearly is a 100% subsidiary of Glenmark and has done a phenomenal job in developing this asset, getting the Phase 1 data. As you know, we have phenomenal data in patients in the Phase 1 trial, where the recent presentation we made at ASCO, we had almost 79% ORR and almost 30% of the patients had complete remission, and these are patients who've gone through all prior lines of therapy in multiple myeloma and then eventually come on to ISB 2001 and have shown this response. So very exciting times. We are super excited about partnering with AbbVie, a great partner with huge global capabilities and huge resources to make ISB 2001 successful and bring it to the market.
Okay. So explain the financials to us. $700 million is what you would get up front. $1.2 billion in terms of milestones and the remaining would be royalties.
That's correct. So we get a $700 million payment upfront, and as soon as we get regulatory approvals, that money will be received by us. The milestones, the $1.2 plus billion dollars of milestones, are spread into clinical development milestones. So as the molecule progresses to clinics, we keep getting milestones, regulatory milestones. So as the molecule gets filed in various markets and approved, we get milestones, and then we get sales-linked milestones. So cumulatively that number comes to $1.25 billion for the asset. And then once it's commercial, we get royalties on sales, which, as you know, some of these innovative products, the life of the royalties is pretty long. So this could pretty much be an annuity if the molecule makes it to market.
Okay. So let's first understand where exactly this molecule stands. Phase 1b currently. Explain that to us. How early is this molecule at this point in time?
So ISB 2001 is still at a relatively early stage. The good news is we have patient data in about 40 to 50 patients. We have good clinical data that we presented at ASCO, so very good safety profile, good efficacy data, but it's still early stage, so it has to go through a significant amount of clinical development as we go forward.
Okay, so AbbVie is now going to take over the entire development of this molecule, we understand. When do you think that it will probably hit the market or show any kind of results?
So AbbVie takes over all clinical development from here on. In terms of timeframe, I can't give you a specific timeframe, but typically molecules, if you look at other assets in the space, they take about four to five years at least to get to commercialization.
So say 2030 would be a good target to probably expect something tangible coming in from the molecule or hitting commercial sales, if it is successful, that is.
So again, I can't specifically talk about ISB 2001, but typically it's about four to five years to commercialization.
Okay. Well, let's talk about how you're going to use the funds. Now, let's start with $700 million, 6,000 crores of cash on books. It will be on Glenmark's books. Tell us how exactly is this $700 million going to be utilized.
