Glenmark Shares Surge 20% as Mutual Funds Drive Buying Over Retail Investors

Shares of Glenmark Pharmaceuticals surged 20% on Friday, July 11, touching an intraday high of ₹2,286 after the company signed a landmark $2 billion licensing agreement with U.S. pharmaceutical giant AbbVie for its investigational cancer drug, ISB 2001. While the news created buzz among retail investors, the biggest beneficiaries of this rally were India’s leading mutual funds, not individual shareholders.

Mutual Funds Lead the Charge

Mutual fund holdings in Glenmark Pharma have seen a significant rise—from 9.11% in June 2023 to 14.60% by March 2025, according to BSE data. During the same period, retail investors' holding declined from 9.99% to 7.69%, indicating that institutions have taken a more active position in the stock.

As of May 2025, 27 mutual fund houses collectively held 4.16 crore shares of Glenmark worth over ₹6,072 crore. Among them, HDFC Mutual Fund led with 1.27 crore shares (₹1,863 crore), followed by Mirae Asset Mutual Fund with 1.01 crore shares (₹1,473 crore).

HDFC Mid Cap Fund held the highest number of shares within HDFC MF—87.78 lakh shares worth ₹1,279 crore.

Mirae Asset Large & Midcap Fund topped Mirae’s holdings with 33.13 lakh shares worth ₹482 crore.

Other notable fund houses included:

Kotak MF: 19.66 lakh shares worth ₹286 crore

SBI MF: 4.98 lakh shares worth ₹72 crore

Motilal Oswal MF: 2.49 lakh shares worth ₹36.29 crore

Smaller entrants like Angel One MF and Unifi MF held a few hundred shares each.

Key Investors & FII Activity

Notable individual investors like Prashant Jain’s 3P India Equity Fund held 1.02%, and Ashish Dhawan held 1.77% in the company.

Foreign institutional investors (FIIs) showed mixed trends:

Smallcap World Fund, INC: Down to 3.21% from 4.52%

Government Pension Fund Global: Increased stake to 3.25% from 2.26%

Ellipsis Partners LLC: Lowered exposure to 1.11% from 1.68%

Details of the AbbVie Deal

The game-changing deal was struck by Glenmark’s wholly owned subsidiary, Ichnos Glenmark Innovation (IGI). Under the agreement:

AbbVie gains exclusive rights to develop, manufacture, and commercialize ISB 2001 in North America, Europe, Japan, and China.

Glenmark retains rights in Emerging Markets including Asia (excluding China and Japan), Latin America, Middle East, Africa, Australia, and South Korea.

The financials of the deal include:

$700 million upfront payment

Up to $1.225 billion in milestone-based payments

Tiered, double-digit royalties on net sales

ISB 2001 is currently in Phase 1 clinical trials for relapsed or refractory multiple myeloma, and the partnership will accelerate its global development.

Conclusion

The surge in Glenmark’s share price reflects strong investor confidence in the AbbVie licensing deal. While the retail segment saw limited participation, mutual funds strategically positioned themselves ahead of the announcement, reaping significant returns. With its robust pipeline and global collaborations, Glenmark is now firmly in the spotlight of institutional investors.