Genmab Earnings Call: Strong Growth, Big Pipeline Bets

Genmab (Otc) ((GMAB)) has held its Q1 earnings call. Read on for the main highlights of the call.

Genmab’s latest earnings call struck an upbeat tone, with management emphasizing robust top-line growth, expanding operating profit and rapid clinical progress across key oncology assets. Executives framed 2026 as a catalyst-heavy year, arguing that strong commercial execution and disciplined but elevated investment outweigh risks tied to tax volatility, competition and several pivotal, binary readouts.

Total Revenue Growth Underlines Diversified Engine

Genmab opened the quarter with total revenue up 25% year-over-year, underscoring a healthy mix of royalties and product sales. Management highlighted ongoing strength from partnered blockbusters like DARZALEX and Kesimpta, alongside rising contributions from the company’s own medicines, which are becoming a more meaningful driver of the top line.

Proprietary Portfolio Delivers Strong Sales Momentum

Proprietary product sales reached $176 million, a 43% jump versus last year, showcasing the ramp of Genmab’s in-house portfolio. The company pointed to vigorous uptake of EPKINLY and Tivdak in both new and established markets, reinforcing the transition from primarily royalty income to a more balanced, product-led revenue base.

EPKINLY Label Wins Poise Drug for Broader Use

EPKINLY generated $137 million in sales, up 52% year-over-year, reflecting accelerating adoption. A key highlight was regulatory progress, including fixed-duration approval with R2 in second-line follicular lymphoma and a label change removing the 24-hour hospitalization recommendation for first full dose in third-line DLBCL, a shift expected to boost community and outpatient usage.

Tivdak Expands Footprint Beyond the U.S.

Tivdak posted $39 million in Q1 revenue, rising 18% from a year ago as it maintains leadership in U.S. recurrent and metastatic cervical cancer. Genmab is pushing geographic expansion with direct commercialization in Japan and Europe and a private prescribing launch in the U.K., supported by engagement with local health authorities to sustain growth.

Balancing Profitability With Heavy Growth Investment

Despite stepping up spending on late-stage programs and launches, Genmab increased operating profit by 23% in Q1, signaling operating leverage. Management reaffirmed 2026 guidance, targeting about 14% revenue growth at the midpoint and significant operating expenses of roughly $2.7–$2.9 billion, framing the spend as essential to unlock long-term value.

Rina-S Accelerates Toward Pivotal Milestones

The Rina-S program advanced quickly, with the RAINFOL-02 Phase III trial in second-line plus platinum-resistant ovarian cancer fully enrolled ahead of schedule, bringing data into 2026. Two additional Phase III studies, including a chemo-replacement in platinum-sensitive ovarian cancer and a frontline endometrial trial, are slated to start soon, with two key datasets in H2 2026 supporting possible 2027 launches.

Petosemtamab Progress and Merus Integration Strategy

Petosemtamab remains on track, with management guiding to one or more readouts this year as it positions the asset for future commercialization. The ongoing integration of Merus is aimed at maximizing petosemtamab’s value, though Genmab stressed that acquisition-related expenses and amortization are excluded from reported results, with reconciliation information provided separately.

Faster Trial Enrollment Creates 2026 Catalyst Cluster

Several key trials, including RAINFOL-02 and multiple EPKINLY studies, enrolled patients faster than initially forecast, effectively pulling forward potential data events. This execution sets up 2026 as a catalyst-rich year, which management believes can underpin prospective launches in 2027 if results and regulatory feedback are favorable.

Tax Rate Volatility Adds Near-Term Noise

Genmab reported Q1 tax expense of about $21 million and an effective tax rate of 28.9%, while warning that the Merus integration could cause swings in the tax rate over the next 12–18 months. The company expects normalization thereafter, but acknowledged that the interim volatility introduces uncertainty into after-tax earnings and reported profitability.

Large Operating Spend Requires Revenue Follow-Through

The company’s 2026 operating expense guidance of roughly $2.7–$2.9 billion marks a notable increase to fund petosemtamab, Rina-S and launch readiness. Management framed this as a necessary investment phase, but investors are likely to track whether revenue and pipeline milestones keep pace with the elevated cost base to protect margins.

Rina-S Faces Hypercompetitive Target Landscape

While management remains confident in Rina-S’s profile and speed to market, it acknowledged the intense competition in the B7-H4 ADC space. Rival programs from players such as GSK and others could pressure eventual market share and pricing, making differentiation on efficacy, safety and time-to-market crucial for commercial success.

Petosemtamab Trial Changes Raise Questions

Genmab increased the size of the frontline petosemtamab trial from 500 to 700 patients and made additional protocol adjustments to enhance the probability of success. However, the company declined to provide granular details on enrollment mix or statistical changes, leaving some uncertainty even as it maintained that overall timelines should remain intact.

Binary Risk From Clustered Readouts

The company’s medium-term outlook is heavily tied to multiple upcoming data events, including frontline EPKINLY in DLBCL, several petosemtamab trials and the Rina-S datasets in H2 2026. Management acknowledged that these readouts carry binary risk, with weaker-than-expected results or regulatory pushback potentially altering commercialization plans for 2026–2027.

Revenue Guidance Suggests Possible Growth Moderation

Despite delivering 25% revenue growth in the quarter, Genmab’s full-year 2026 guidance calls for around 14% growth at the midpoint, implying potential deceleration. Management’s stance may reflect conservatism amid macro and competitive uncertainties, and investors will watch upcoming quarters to see whether the strong Q1 trajectory can be sustained.

Excluded Acquisition Costs Cloud Full Profit Picture

The company’s results and outlook exclude acquisition-related expenses and amortization, especially linked to the Merus deal, which can mask the full cost of its M&A strategy. While reconciliations are available, the gap between adjusted metrics and GAAP profitability may add some opacity for investors assessing true earnings power and cash generation.

Outlook and Guidance Anchor a Catalyst-Heavy 2026

Genmab reaffirmed its 2026 financial framework, calling for mid-teens revenue growth and operating expenses near $2.7–$2.9 billion to advance petosemtamab and Rina-S and prepare for launches. Management also confirmed the timing of key 2026 data readouts and reiterated a medium-term balance sheet goal to reduce gross leverage to below 3x by the end of 2027.

Genmab’s earnings call painted a picture of a company executing well commercially while betting heavily on a late-stage oncology pipeline that could reshape its profile by 2027. Strong revenue and profit growth, faster trial enrollment and multiple upcoming catalysts drove a broadly positive tone, though investors must weigh sizable spending, tax noise and substantial binary clinical risk ahead.