Genmab’s Strong Performance Overshadowed by Patent Expiration Concerns and Competitive Challenges

TD Cowen analyst Yaron Werber has maintained their neutral stance on GMAB stock, giving a Hold rating on April 24.

Yaron Werber has given his Hold rating due to a combination of factors including Genmab’s strong commercial performance and revenue growth, particularly driven by Darzalex and Epkinly. While the company has demonstrated a solid financial position with a significant cash reserve, Werber remains cautious about the lack of immediate catalysts that could drive the stock higher in the near term.
Additionally, Werber expresses concern over the looming patent expiration of Darzalex by 2030, which poses a significant challenge for Genmab’s future revenue streams. Although Epkinly shows promise with its dual indications and potential for substantial sales, the upcoming data readouts in 2025 and 2026 will be crucial in determining its long-term impact. The analyst also highlights the competitive landscape for acasunlimab in NSCLC, where results have been underwhelming so far, adding to the cautious outlook.

Werber covers the Healthcare sector, focusing on stocks such as Ionis Pharmaceuticals, Argenx Se, and Ascendis Pharma. According to TipRanks, Werber has an average return of 7.6% and a 49.51% success rate on recommended stocks.

In another report released on April 24, Morgan Stanley also maintained a Hold rating on the stock with a $25.00 price target.