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BEAR GENM X5 VON

  • Symbol BEAR GENM X5 VON
  • ISIN DE000VS0GRD7
Produkten har löpt ut
Termination Date: 2020-06-30
5X Short Index linked to Genmab A/SDKK -
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Genmab A/S

Important legal information

Genmab is a biotechnology company specializing in developing treatments for cancer. The treatments are based on “antibody products”, essentially “re-using” living extracts from bodies of humans and/or animals. The company was founded in 1999, employs 170 people, and is listed on the Copenhagen Stock Exchange. The company is known for two approved antibodies in particular:

1) Arzerra®: for the treatment of certain leukemia conditions. Approved in US.

2) DARZALEX™: for the treatment of multiple myeloma (cancer of plasma cells). DARZALEX was developed in collaboration with Janssen Biotech(part of Johnson & Johnson). Approved in US.

Genmab also has a broad clinical and pre-clinical product pipeline, which could potentially lead to further approved treatments. However, the future development remains to be seen.

As part of its strategy, Genmab uses an active partnership approach. The company seeks to partner with companies who are interested in licensing their products and proprietary technologies. In addition, the burden of upfront financing of projects can be shared. List of alliances includes top tier pharmaceutical and biotechnology companies such as Amgen, Novartis, Janssen, Medarex, Seattle Genetics, Eli Lilly, Gilead Sciences, Novo Nordisk, Roche and H. Lundbeck.

In terms of financial performance, after a period of operating losses, Genmab reached “break-even” in 2013, generating a small profit of DKK 69 million. Since then, operating profit has grown to DKK 730 million as of fiscal year 2015. The company operates on a debt free basis, which lowers the overall risk profile.

A review of Genmab’s historical share price provides for an interesting read…
- Share price reached a high of c. DKK 400 in the Summer 2007, just before financial crisis started
- In 2011, the share price had reached a low of c. DKK 30, a decline of over 90%
- Since 2011, the share price has staged a remarkable recovery, increasing almost 30x or 2800% to the current level of DKK 940
- During the February 2016 stock market turmoil, share price was down touching DKK 650 (-32%), before recovering again to current level of DKK 940 (+47%). The future development remains to be seen.

Brokers are generally positive on Genmab: 10# (77%) Buy, 2# (15%) Hold and 1# (8%) Sell. Median target price is currently at DKK 1,050, representing a 12% upside to current share price.

Genmab’s prospects of successfully launching further cancer treatment drugs coupled with the inherent share price volatility provides investors with an interesting opportunity to take a view in either direction.

Dokument