Genmab: Diversified Oncology Pipeline Supports Upside and Maintained Buy Rating Despite EPKINLY Phase 3 Setback

H.C. Wainwright analyst Ram Selvaraju reiterated a Buy rating on Genmab today and set a price target of $39.00.

Ram Selvaraju has given his Buy rating due to a combination of factors that, in his view, still support Genmab’s long-term value despite recent trial setbacks. He acknowledges that EPKINLY’s Phase 3 EPCORE DLBCL-1 study did not meet its primary overall survival endpoint, but he believes the drug is likely to maintain its existing accelerated approval in third-line diffuse large B-cell lymphoma while additional pivotal trials (EPCORE DLBCL-2 and DLBCL-4) continue. He draws a parallel to Roche’s Columvi, which kept its accelerated approval in a similar indication even after a negative Phase 3 study, suggesting regulators may take a comparable stance with EPKINLY. Reflecting the increased uncertainty, he reduces the modeled probabilities of full approval for EPKINLY in first- and second-line+ DLBCL, and modestly trims his price target from $41 to $39, but does not view the latest data as thesis-breaking.
Selvaraju’s valuation work, based on a discounted cash flow analysis, still supports upside to the current share price, underpinned by a diversified late-stage portfolio. He ascribes high or moderate approval probabilities to multiple key assets, including DARZALEX in smoldering multiple myeloma, tisotumab vedotin across several cervical and ovarian cancer settings, epcoritamab in various lymphoma lines, teclistamab in multiple myeloma, petosemtamab in head and neck cancer, and GEN1046 in solid tumors. This breadth of potential revenue drivers, combined with conservative assumptions on terminal growth, discount rate, and tax rate, yields a $39 per-share 12‑month price objective. Although he notes meaningful risks—ranging from product-specific clinical and commercial outcomes to macro and currency factors—he concludes that Genmab’s risk-reward profile remains favorable, justifying the continued Buy recommendation.

According to TipRanks, Selvaraju is a 5-star analyst with an average return of 25.8% and a 56.43% success rate. Selvaraju covers the Healthcare sector, focusing on stocks such as Vanda, Emergent Biosolutions, and Anavex Life Sciences.

In another report released yesterday, Bank of America Securities also maintained a Buy rating on the stock with a $38.50 price target.