RHHBY - Genmab: A Complicated Tale

2024-05-01 10:27:47 ET

Summary

• Genmab's stock has lost over 35% of its value since December 2022 due to unfavorable arbitration cases and high spending on launching Epkinly.
• The company's top line is currently dominated by royalties from Darzalex, but it hopes Epkinly will contribute significantly to its revenue.
• Genmab has a strong pipeline with eight revenue-generating medications, nine clinical programs, and nine royalty candidates in Phase 2 or later trials.
• The company also recently made an acquisition to bolster its pipeline with some ADC candidates.
• A full investment analysis around Genmab A/S stock is presented in the paragraphs below.

Shares of Danish antibody concern Genmab A/S ( GMAB ) have lost over 35% of their value since December 2022, as three arbitration cases went against it while it was spending substantially to launch Epkinly. The hope is for Epkinly to garner a decent share of the company's top line, currently dominated by royalties from blockbuster MM therapy Darzalex, which accounted for 68% of FY23 revenues. The company recently announced a just over $500 million stock buyback authorization. With eight meds now generating revenue, nine clinical programs, and nine royalty candidates in Phase 2 or later trials, Genmab merited further investigation. An analysis follows below....

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