Narrow-Moat Genmab Reports Strong Sales Across Key Products; Shares Fairly Valued, FVE DKK 2220

Genmab reported solid fourth-quarter results in line with our expectations. Royalty revenue increased 47% year over year to DKK 6.9 billion in 2021 thanks to continued growth from Darzalex, Tepezza, and Kesimpta. Total revenue declined 16% to DKK 8.5 billion compared to DKK 10.1 billion in 2020, which was due to a one-time upfront payment of nearly DKK 4.4 billion from AbbVie in 2020. We maintain our fair value estimate of DKK 2,220 per share and view shares as fairly valued. We also maintain our narrow moat rating, which is based on intangible assets from the development of its antibody therapeutics for cancer.