GMAB - Genmab's Arbitration Loss: Best To Forgive And Forget (Rating Upgrade)

2024-01-23 16:29:32 ET

Summary

• Genmab's appeal against Johnson & Johnson in an arbitration case has been denied, eliminating the potential upside for the company.
• Despite this setback, Genmab remains well positioned to create shareholder value through continued revenue growth and pipeline progression and expansion.
• The launch of Epkinly/Tepkinly and the growth of other products are expected to reduce Genmab's reliance on Darzalex royalties.
• The head-to-head phase 2 data of GEN3014 and Darzalex represent the most important clinical catalyst for Genmab this year.

I was surprised to see shares of Genmab ( GMAB ) trade lower on the announcement that the arbitration appeal against partner Johnson & Johnson ( JNJ ) was denied . I already had written off this arbitration when it was initially lost and believed the odds of an appeal win were very low....

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