Narrow-Moat Genmab Reports Positive Year-End Results; Shares Appear Fairly Valued

Narrow-moat Genmab reported strong 2022 results highlighted by revenue of DKK 14.6 billion, representing a 72% increase from 2021, which includes a 30% foreign exchange tailwind. Genmab achieved robust royalty revenue of DKK 11.9 billion thanks to continued growth from Darzalex, Tepezza, and Kesimpta. We don’t anticipate a significant change to our fair value estimate of DKK 2,650 per share as Genmab is largely tracking our expectations. The average USD/DKK exchange rate in 2022 was 7.1, and management is projecting an exchange rate of DKK 6.8 in 2023, which is lower than our previous estimate of DKK 7.15 for the year. We view the current share price as fairly valued, and it is trading in 3-star territory. We maintain our narrow moat rating, which is based on intangible assets from the development of its antibody therapeutics for cancer.