Genmab confirms guidance, growth on track

Genmab confirms guidance, growth on track

den 11 augusti 2017

Strong revenue growth with operating results in line.

Genmab A/S is an international biotechnology company specializing in the creation and development of differentiated antibody therapeutics for the treatment of cancer. Founded in 1999, the company has two approved antibodies, Darzalex for the treatment of certain multiple myeloma indications, and Arzerrafor the treatment of certain chronic lymphocytic leukemia indications.


Q2 result in line

This week the company announced its financial results for the first half of 2017: Revenue was DKK 1.024 billion compared to DKK 524 million in the first half of 2016. The increase of DKK 500 million, or 95%, was mainly driven by higher Darzalex royalties and milestones. Licensor Johnson & Johnson already reported Darzalex sales of USD 299 million in its Q2 results three weeks ago, which resulted in royalties of DKK 454 million to Genmab. Operating expenses increased by 21% to DKK 422 million, while operating income came in at DKK 582 million (+268% YoY).

Due to recent USD currency depreciation, financial losses of DKK171m were reported due to revaluation of Genmab’s USD portfolio and cash. The FX losses led to net income and EPS which were nearly 40% lower compared to consensus estimates.


2017 guidance reiterated

Management confirmed its guidance for the full year and expects revenues of DKK 1.95 to 2.15 billion, operating costs of DKK 0.90 to 1.10 billion and EBIT between DKK 0.90 and DKK 1.10 billion.

On the conference call, management highlighted several pipeline milestones which it expects across the second half of the year. Most notably, interim data from the Alcyone trial is expected in the autumn, and full data from the cervical cancer cohort in the phase I/II trial for Tisotumab Vedotin will be presented at the ESMO conference on 8 September. The company is currently in discussions with the FDA regarding the possible fast track programme for a pivotal clinical trial in this setting.

Investors did not really appreciate the results and sent the shares down by 6.30%. The stock is currently trading with a P/E of 58.11 at around DKK 1,318 and shows a market capitalization of DKK 80.54 billion. 10 Bloomberg analysts recommend BUY, 7 Hold and 3 analysts have a SELL rating. The consensus target price is at DKK 1,461 10,85% higher than the current price.



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2023-02-06 01:08:45