Genmab Reports H1 2024 Financial Results

On August 8, 2024, Genmab A/S released its Interim Report for the First Six Months Ended June 30, 2024, highlighting several key developments and financial achievements.

Key Highlights

Acquisition of ProfoundBio Inc:
Genmab successfully acquired ProfoundBio Inc, gaining worldwide rights to three clinical candidates, including rinatabart sesutecan (Rina-S). This acquisition adds significant value through ProfoundBio's novel antibody-drug conjugate technology platforms.

Regulatory Approvals:
The U.S. Food and Drug Administration (FDA) approved EPKINLY® (epcoritamab-bysp) for treating adult patients with relapsed or refractory follicular lymphoma (FL) after at least two lines of systemic therapy. In Europe, the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency (EMA) recommended conditional marketing authorization for TEPKINLY® (epcoritamab) for similar indications.

Moreover, Tivdak® (tisotumab vedotin-tftv) received full approval from the U.S. FDA for the treatment of recurrent or metastatic cervical cancer. Genmab also submitted a Japan New Drug Application (J-NDA) to the Ministry of Health, Labor and Welfare in Japan for Tivdak for treating advanced or recurrent cervical cancer.

Financial Performance

Revenue Growth:
For the first half of 2024, Genmab reported a revenue of DKK 9,545 million, a 36% increase from DKK 7,003 million in the first half of 2023. This growth was driven primarily by higher royalties from DARZALEX® (daratumumab) and Kesimpta® (ofatumumab), under collaborations with Janssen Biotech, Inc. and Novartis Pharma AG respectively, and increased net product sales of EPKINLY.

Royalty Revenue:
Royalty revenues rose to DKK 7,673 million, up 30% from DKK 5,886 million in the first half of 2023. This increase was primarily due to higher net sales of DARZALEX and Kesimpta. Janssen's sales of DARZALEX, including its subcutaneous form DARZALEX FASPRO®, reached USD 5,570 million, a 19% increase from USD 4,695 million in the previous year.

Operating Costs and Expenses:
Total costs and operating expenses amounted to DKK 7,104 million, a 39% increase from DKK 5,118 million in the first six months of 2023. This rise was attributed to the expansion of Genmab’s product pipeline, post-launch activities for EPKINLY in the U.S. and Japan, development of broader organizational capabilities, and profit-sharing payments to AbbVie Inc. related to EPKINLY sales.

Operating Profit:
The company recorded an operating profit of DKK 2,441 million, up from DKK 1,885 million in the first half of 2023. Net financial items resulted in an income of DKK 1,402 million, a significant increase from DKK 75 million in the first half of 2023. This was primarily due to favorable movements in USD to DKK foreign exchange rates.

Significant Event Post-Quarter End

In August, Genmab announced its decision to assume sole responsibility for the continued development and potential commercialization of acasunlimab, following BioNTech SE's decision to withdraw from the development program. The companies will continue their existing collaboration in antibody science.

Financial Guidance Update

Genmab updated its 2024 financial guidance, forecasting revenues between DKK 20,500 million and DKK 21,700 million. Royalty revenues are expected to range from DKK 16,600 million to DKK 17,400 million. Net product sales and collaboration revenues are anticipated to fall between DKK 2,000 million and DKK 2,200 million, while milestones/reimbursement revenue is projected to be between DKK 1,900 million and DKK 2,100 million. Operating expenses are expected to range from DKK 14,100 million to DKK 14,700 million. The operating profit is projected between DKK 4,900 million and DKK 6,700 million.

Conclusion

Genmab's first half of 2024 was marked by substantial growth and key strategic milestones, including the acquisition of ProfoundBio, multiple regulatory approvals, and robust financial performance. These accomplishments are expected to further Genmab's vision of transforming patient lives with innovative antibody therapies.

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