Company Reports

Narrow-moat Genmab reported robust first-quarter results highlighted by revenue of DKK 4.1 billion, a 46% increase from the prior-year period. Royalty revenue from Darzalex continued to drive sales, accounting for 57% of total revenue in the quarter. Genmab’s results are tracking our expectations, and we maintain our fair value estimate of DKK 2,650 per share. We view the stock as undervalued, currently trading in 4-star territory at about 27% below our fair value estimate.

Genmab announced it will acquire ProfoundBio, a privately owned clinical-stage biotechnology company developing antibody-drug conjugates, or ADCs, to treat certain cancers, for $1.8 billion in cash or approximately DKK 12.39 billion. The acquisition will give Genmab worldwide rights to three ADC candidates in clinical development, led by Rina-S, which is being evaluated in a phase 2 clinical trial targeting folate receptor alpha for treating solid tumors, including ovarian and endometrial cancer. Management anticipates Rina-S could be approved in 2027, generating additional upside potential toward the end of our 10-year forecast period. We anticipate Genmab’s operating expenses will be moderately elevated, which reflects the incremental research and development investment to support the advancement of ProfoundBio's clinical programs. Due to the relatively early stage of Rina-S and risks associated with the clinical development process, we maintain our fair value estimate of DKK 2,650 per share and view the stock as undervalued, currently trading in 4-star territory. Our narrow moat rating is based on Genmab’s intangible assets from the development of its cancer antibody therapeutics and strong patents covering Darzalex that do not begin to expire until 2031.

Royalty revenue from Genmab’s Darzalex is continuing to drive sales, accounting for 68% of Genmab’s total revenue in 2023. It’s providing ample cash flow as the company works to develop its pipeline and prioritize commercialization efforts for Epkinly, which received regulatory approvals in the United States, European Union, and Japan for the treatment of diffuse large B-cell lymphoma.

Genmab is focused on the development of monoclonal antibody and bispecific antibody therapies in oncology indications. The company's best-known drug, Darzalex (or daratumumab), was developed in partnership with Johnson & Johnson for multiple myeloma. Darzalex is now entrenched in multiple myeloma care for several lines of therapy, including the frontline setting. Additionally, Darzalex is often used in combination treatments, unlocking even greater market potential. Genmab receives royalties of up to 20% from J&J on Darzalex sales, plus milestones from the company's antibody platform partnerships.

Genmab reported solid results in the third quarter, highlighted by revenue exceeding DKK 4.7 billion, representing a 16% increase compared with the prior-year period. Darzalex, in partnership with wide-moat Johnson & Johnson, remains deeply entrenched in the standard of care for multiple myeloma, and it accounted for nearly 70% of Genmab’s total revenue in the quarter. Genmab’s results and pipeline candidates are tracking our expectations, and we maintain our fair value estimate of DKK 2,650. We view the stock as undervalued, currently trading in 4-star territory, about 18% below our fair value estimate.

Genmab reported positive results for first-half 2023, highlighted by revenue exceeding DKK 7 billion, representing a 34% increase compared with the prior-year period. Darzalex, in partnership with wide-moat Johnson & Johnson, remains deeply entrenched in the standard of care for multiple myeloma, and it accounted for 70% of Genmab’s total sales. We maintain our fair value estimate of DKK 2,650 and view the stock as fairly valued. We maintain our narrow moat rating, which is based on intangible assets from the development of Genmab’s antibody therapeutics for cancer.

Narrow-moat Genmab reported solid first-quarter results highlighted by revenue of DKK 2.8 billion, representing a 35% year-over-year increase. Robust royalty revenue grew 32% from the prior-year period to DKK 2.4 billion. The increase in royalties was driven by higher net sales of Darzalex and Kesimpta and exchange rate tailwinds. We’re maintaining our fair value estimate at DKK 2,650, and we view the stock as fairly valued. We maintain our narrow moat rating, which is based on intangible assets from the development of Genmab’s antibody therapeutics for cancer.

Genmab focuses on the development of monoclonal antibody and bispecific antibody therapies in oncology indications. The company's best-known drug, Darzalex (or daratumumab), was developed in partnership with Johnson & Johnson for multiple myeloma. Darzalex is now entrenched in multiple myeloma care for several lines of therapy, including the frontline setting. Additionally, Darzalex is often used in combination treatments, unlocking even greater market potential. Genmab receives royalties of up to 20% from J&J on Darzalex sales, plus milestones from the company's antibody platform partnerships.

Genmab focuses on the development of monoclonal antibody and bispecific antibody therapies in oncology indications. The company's best-known drug, Darzalex (or daratumumab), was developed in partnership with Johnson & Johnson for multiple myeloma. Darzalex is now entrenched in multiple myeloma care for several lines of therapy, including the frontline setting. Additionally, Darzalex is often used in combination treatments, unlocking even greater market potential. Genmab receives royalties of up to 20% from J&J on Darzalex sales, plus milestones from the company's antibody platform partnerships.

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.

Narrow-moat Genmab is continuing to benefit from the strong U.S. dollar, which is creating a positive foreign exchange rate impact on its royalty revenue, in addition to robust Darzalex sales. Management has revised its USD/DKK exchange rate guidance to 7.2 for the year versus previous guidance of 6.8. We’ve updated our forecasts to account for the increased foreign exchange rate guidance and continued healthy performance of Darzalex, and we’ve raised our fair value estimate to DKK 2,650 from DKK 2,490. We maintain our narrow moat rating, stable trend, and medium uncertainty rating. While we believe Genmab is well positioned to post strong sales with average revenue growth of 10% between 2023-31, we think the stock’s high valuation seems to expect even stronger potential. We view the current share price as overvalued, and Genmab shares are trading in 2-star territory.

Genmab focuses on the development of monoclonal antibody and bispecific antibody therapies in oncology indications. Its best-known drug, Darzalex (or daratumumab), was developed in partnership with Johnson & Johnson for multiple myeloma. Darzalex is now entrenched in multiple myeloma care for several lines of therapy, including the frontline setting. Additionally, Darzalex is often used in combination treatments, unlocking even greater market potential. Genmab receives royalties of up to 20% from J&J on Darzalex sales, plus milestones from the company's antibody platform partnerships.

Narrow-Moat Genmab is benefiting from the strong U.S. dollar, which is contributing to higher revenue and overall higher operating profit. Management raised its USD/DKK exchange rate guidance to 6.8 for the year versus previous guidance of 6.4. We’ve updated our forecasts to account for the revised foreign-exchange guidance, and we’ve raised our fair value estimate to DKK 2,490. We view shares as fairly valued, and Genmab is currently trading in 3-star territory. We maintain our narrow moat rating, stable trend, and Medium Uncertainty Rating.

Genmab focuses on the development of monoclonal antibody and bispecific antibody therapies in oncology indications. Its best-known drug, Darzalex (or daratumumab), was developed in partnership with Johnson & Johnson for multiple myeloma. Darzalex is now entrenched in multiple myeloma care for several lines of therapy, including the frontline setting. Additionally, Darzalex is often used in combination treatments, unlocking even greater market potential. Genmab receives royalties of up to 20% from J&J on Darzalex sales, plus milestones from the company's antibody platform partnerships.

Genmab reported solid first-quarter results in line with our expectations. Revenue of DKK 2.1 billion increased 34% from the prior-year period, which was primarily due to continued strong demand for Darzalex, contributing to a 36% year-over-year increase in Darzalex net sales. We maintain our fair value estimate of DKK 2,220 per share and view shares as fairly valued, currently trading in 3-star territory.

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.

Genmab focuses on the development of monoclonal antibody and bispecific antibody therapies in oncology indications. Its best-known drug, Darzalex (or daratumumab), was developed in partnership with Johnson & Johnson for multiple myeloma. Darzalex is now entrenched in multiple myeloma care for several lines of therapy, including the frontline setting. Additionally, Darzalex is often used in combination treatments, unlocking even greater market potential. Genmab receives royalties of up to 20% from J&J on Darzalex sales, plus milestones from the company's antibody platform partnerships.

Genmab reported solid third-quarter results as revenue increased 34% from the prior-year period, primarily due to a 19% increase in Darzalex royalties. Management raised its 2021 revenue guidance by 8% at the midpoint of its previous outlook thanks to stronger-than-expected Darzalex sales and increased Darzalex royalty revenue. We’ve updated our model to reflect greater Darzalex sales as well as an improved probability of approval for epcoritamab. We’ve raised our fair value estimate to DKK 2,220 per share from DKK 2,104. We maintain our narrow moat rating, which is based on intangible assets from the development of its antibody therapeutics for cancer.

Genmab focuses on the development of monoclonal antibody and bispecific antibody therapies in oncology indications. Its best-known drug, Darzalex (or daratumumab), was developed in partnership with Johnson & Johnson for multiple myeloma. Darzalex is now entrenched in multiple myeloma care for several lines of therapy, including the frontline setting. Additionally, Darzalex is often used in combination treatments, unlocking even greater market potential. Genmab receives royalties of up to 20% from J&J on Darzalex sales, plus milestones from the company's antibody platform partnerships.

Genmab reported strong second-quarter results highlighted by Darzalex net sales increasing 52% compared with the first half of 2020 to USD 2.8 billion, resulting in royalty income of DKK 2.4 billion. Management increased Genmab’s 2021 guidance primarily due to greater Darzalex net sales contributing to higher royalty revenue. We’ve adjusted our model for stronger than expected Darzalex sales as well as healthy growth for Tepezza sales since it has rebounded from a supply chain disruption earlier this year. As a result, we’ve raised our fair value estimate to DKK 2,104 from DKK 2,015. We maintain our narrow moat rating, which is based on intangible assets from the development of its antibody therapeutics for cancer. Genmab’s leading drug, Darzalex, is deeply entrenched in the standard of care for multiple myeloma and we think it is well protected from competition over the next 10 years.