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Genmab A/S (GMAB)
NASDAQ:GMAB
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Genmab
(NASDAQ:GMAB)
Rating:81Outperform
Price Target:
$23.50
▲( 12.93% Upside)
Positive Factors
Clinical Trials and Drug Development
Genmab has committed to initiating a Phase III study for Rina-S in second-line plus endometrial cancer, which is a promising development given the limited treatment options in this setting.
Financial Performance
Genmab recorded a diluted net income of $3.05 per share, exceeding the previously forecasted $1.98 per share.
Revenue Growth
Total revenues reflect roughly 19% year-over-year growth, and recurring revenue streams reflect 33% year-over-year growth, with growth primarily driven by greater Darzalex and Kesimpta royalties, as well as strong Epkinly and Tivdak sales.
Negative Factors
Market Risks
Risks include slowing DARZALEX sales and failure to obtain DARZALEX label extensions.
Strategic Challenges
Outlook remains guarded due to the lack of meaningful near-term catalysts and increasing concern about how Genmab will overcome the Darzalex patent cliff by 2030.
Genmab (GMAB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.78B
Dividend YieldN/A
Average Volume (3M)1.44M
Price to Earnings (P/E)11.7
Beta (1Y)0.57
Revenue Growth25.11%
EPS Growth46.46%
CountryUS
Employees2,638
SectorHealthcare
Sector Strength40
IndustryBiotechnology
Share Statistics
EPS (TTM)0.30
Shares Outstanding641,221,400
10 Day Avg. Volume1,521,316
30 Day Avg. Volume1,435,752
Financial Highlights & Ratios
PEG Ratio-0.89
Price to Book (P/B)15.99
Price to Sales (P/S)0.00
P/FCF Ratio12.98
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$29.67Price Target Upside42.58% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
Genmab Business Overview & Revenue Model
Company DescriptionGenmab A/S is a biotechnology company specializing in the creation and development of differentiated antibody therapeutics for the treatment of cancer. The company operates primarily in the healthcare and biotechnology sectors, leveraging its proprietary technology platforms to develop a robust pipeline of innovative antibody therapeutics. Genmab's core products include approved medicines like DARZALEX, Kesimpta, and TEPEZZA, which are developed in collaboration with leading pharmaceutical companies.
How the Company Makes MoneyGenmab generates revenue through a combination of royalties, collaboration agreements, and milestone payments. A significant portion of its revenue comes from royalties on sales of its marketed products, such as DARZALEX, which is commercialized by Janssen Biotech, a subsidiary of Johnson & Johnson. The company also enters into strategic partnerships and licensing agreements with major pharmaceutical companies to co-develop and commercialize its antibody products, which provides upfront payments, development milestones, and sales-based royalties. Additionally, Genmab invests in its own proprietary product pipeline with the potential for future commercialization, thus creating multiple avenues for revenue generation.
Genmab Financial Statement Overview
Summary
Genmab demonstrates robust financial health with strong profitability, a solid balance sheet, and effective cash flow management. Despite a slight recent revenue decline, the company maintains a strong market position with efficient operations and low leverage, providing resilience against market volatility.Income Statement
Genmab exhibits strong profitability with a consistent gross profit margin exceeding 95% across the years. The net profit margin for TTM is a robust 37.1%, highlighting effective cost management. Revenue growth is evident, although there was a decline in the most recent period compared to the previous year, indicating potential market fluctuations or competitive pressures.85
Very Positive
Balance Sheet
The balance sheet reflects strong financial stability with a low debt-to-equity ratio of 0.027 in TTM, indicating low financial leverage. The equity ratio is high, around 80.4%, showcasing a solid equity base. Return on equity is impressive at 12.7%, reflecting efficient use of equity capital.90
Very Positive
Cash Flow
Cash flow statements reveal a strong cash generation capability, with a high operating cash flow to net income ratio of 0.97 and a free cash flow to net income ratio of 0.95 in TTM. However, free cash flow growth has seen some fluctuations, indicating potential investment cycles or operational changes.88
Very Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 18.10B | 21.53B | 16.47B | 14.60B | 8.48B | 10.11B | Gross Profit |
| 17.26B | 20.54B | 16.25B | 14.60B | 8.48B | 10.11B | EBIT |
| 6.27B | 6.70B | 5.32B | 6.36B | 3.02B | 6.31B | EBITDA |
| 6.62B | 7.39B | 5.56B | 7.04B | 3.15B | 6.54B | Net Income Common Stockholders |
| 6.71B | 7.84B | 4.35B | 5.45B | 2.96B | 4.76B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 3.23B | 21.10B | 28.14B | 22.32B | 19.34B | 16.08B | Total Assets |
| 6.59B | 45.81B | 35.29B | 30.28B | 24.63B | 21.14B | Total Debt |
| 143.00M | 1.03B | 770.00M | 597.00M | 425.00M | 319.00M | Net Debt |
| -1.48B | -8.83B | -14.10B | -9.30B | -8.53B | -6.94B | Total Liabilities |
| 1.29B | 9.11B | 3.68B | 2.84B | 2.43B | 2.02B | Stockholders Equity |
| 5.30B | 36.70B | 31.61B | 27.44B | 22.20B | 19.12B |
| Cash Flow | Free Cash Flow | ||||
| 6.35B | 7.58B | 7.00B | 3.60B | 1.98B | 6.13B | Operating Cash Flow |
| 6.54B | 7.77B | 7.38B | 3.91B | 2.23B | 6.43B | Investing Cash Flow |
| -8.51B | -9.91B | -1.28B | -2.76B | -961.00M | -2.35B | Financing Cash Flow |
| -3.34B | -3.92B | -606.00M | -789.00M | -420.00M | 71.00M |
Genmab Technical Analysis
Positive
20.81
Price Trends
19.86
Positive
20.54
Positive
22.15
Negative
Market Momentum
0.12
Negative
56.49
Neutral
85.43
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GMAB, the sentiment is Positive. The current price of 20.81 is above the 20-day moving average (MA) of 20.35, above the 50-day MA of 19.86, and below the 200-day MA of 22.15, indicating a neutral trend. The MACD of 0.12 indicates Negative momentum. The RSI at 56.49 is Neutral, neither overbought nor oversold. The STOCH value of 85.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GMAB.
Genmab Risk Analysis
Genmab disclosed 51 risk factors in its most recent earnings report. Genmab reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 2 New Risks
1.
The substantial majority of our revenue comes from royalties on sales of DARZALEX, and our patents underlying these royalties will start to expire in the late 2020s. Q4, 2024
2.
We are subject to risks as a result of our multinational operations. Q4, 2024
Genmab Peers Comparison
Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | $11.56B | 19.23 | 30.22% | ― | 24.49% | 244.87% | |
81 Outperform | $12.78B | 11.68 | 22.69% | ― | 25.11% | 46.46% | |
79 Outperform | $13.88B | 12.28 | 19.94% | ― | 19.85% | 21.16% | |
71 Outperform | $11.04B | 21.35 | 9.64% | ― | 17.99% | 152.10% | |
71 Outperform | $12.44B | 198.78 | 0.47% | ― | 17.13% | -88.78% | |
53 Neutral | $5.14B | 3.23 | -45.01% | 2.85% | 17.55% | -0.69% | |
52 Neutral | $9.88B | ― | 357.68% | ― | 10.69% | 34.71% |
* Healthcare Sector Average
Performance Comparison
GMAB
Genmab
20.81
-7.20
-25.71%
BMRN
BioMarin Pharmaceutical
57.55
-16.88
-22.68%
EXEL
Exelixis
42.39
22.05
108.41%
INCY
Incyte
64.24
6.99
12.21%
UTHR
United Therapeutics
307.65
38.50
14.30%
ASND
Ascendis Pharma
162.00
34.67
27.23%
Genmab Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q4-2024)
| % Change Since: 1.02%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong financial performance in 2024 with significant revenue and profit growth, driven by the success of commercialized medicines like EPKINLY and TIVDAK. The company has a robust pipeline with strategic investments and provided optimistic guidance for 2025. However, there are minor concerns about EPKINLY's flat sales in Q4 and the company's dependency on key products amid competitive pressures.Q4-2024 Updates
Positive Updates
Strong Revenue and Profit Growth
Genmab achieved a 31% total revenue growth in 2024, driven by the success of its commercialized medicines, including EPKINLY and TIVDAK. The company also grew operating profit by 26% and ended the year with nearly $3 billion in cash.
EPKINLY's Market Expansion
EPKINLY received multiple regulatory approvals and achieved $281 million in sales for 2024, driven by strong performance in the U.S. and Japan. The drug is expected to have a peak sales opportunity exceeding $3 billion.
Pipeline and Strategic Investments
Genmab has 12 products in 30 clinical trials, including seven Phase III trials. The company made strategic investments such as the $1.8 billion acquisition of ProfoundBio to accelerate development.
TIVDAK's Continued Growth
TIVDAK achieved $131 million in sales during 2024 and is regarded as the global standard of care in second-line plus recurrent or metastatic cervical cancer.
Robust Financial Guidance for 2025
Genmab provided 2025 guidance with expected revenue growth of 12% at the midpoint and a recurring revenue growth of 18%.
Negative Updates
Flat EPKINLY Sales in Q4
EPKINLY's sales were flat in Q4 compared to Q3, partly due to a one-time accounting adjustment in Europe.
Dependency on Key Products
Genmab's revenue heavily relies on key products like DARZALEX, with potential impacts from emerging competitors like Blenrep.
Company Guidance
On the Genmab Full Year 2024 Financial Results Conference Call held on February 14, 2025, the company reported a robust financial performance, with total revenue growth of 31%, driven by the success of its eight commercialized medicines, including EPKINLY and TIVDAK. Genmab's operating profit grew by 26% despite significant investments, such as the $1.8 billion acquisition of ProfoundBio and a $500 million share buyback. The company ended the year with nearly $3 billion in cash, reinforcing its financial strength. Genmab is advancing its pipeline, with 12 products or product candidates in 30 clinical trials, including seven Phase III trials. The company expects significant revenue growth from its late-stage programs, EPKINLY, Rina-S, and Acasunlimab, by the end of the decade. For 2025, Genmab provided guidance for revenue in the range of $3.3 to $3.7 billion and operating expenses between $2.1 billion and $2.2 billion, projecting 16% growth in operating profit.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.