Buy GMAB
Key Financial Metrics
Fealty’s Foundational Reasons
Proven Commercial Success: Genmab’s track record with blockbuster drugs like DARZALEX, combined with the rapid growth of EPKINLY and TIVDAK, demonstrates its ability to deliver high-impact therapies and recurring revenue growth.
Innovative and Differentiated Pipeline: The company’s proprietary DuoBody and HexaBody technologies drive a strong pipeline of first-in-class and best-in-class antibody therapies, including three promising late-stage assets—EPKINLY, Rina-S, and acasunlimab.
Strategic Financial Strength: With recurring revenues comprising 92% of total revenue in 2024 and disciplined portfolio prioritization, Genmab balances robust profitability with focused investments in late-stage programs to ensure sustainable growth.
Expanding Global Reach: Strategic collaborations with AbbVie, Janssen, and others enable global market access and scalability, ensuring broad adoption of its innovative therapies across key geographies.
Margin of Safety: Based off of our calculation of Genmab’s intrinsic value of $45.90, the current price of $21.50, leaves a healthy margin of safety.
Genmab’s Origins and Revenue Streams
Founded in 1999, Genmab is a global biotechnology company headquartered in Denmark with a primary focus on developing innovative antibody-based therapies for the treatment of cancer and other serious diseases. The company has built its reputation as a pioneer in antibody technology, leveraging its proprietary DuoBody® and HexaBody® platforms to create first-in-class and best-in-class therapeutics that aim to improve patient outcomes.
Genmab operates with a hybrid business model that combines proprietary product development with strategic collaborations. The company’s primary strength lies in its ability to discover, develop, and commercialize transformative antibody therapies. With eight products on the market, including DARZALEX®, one of the most successful oncology therapies worldwide, Genmab has demonstrated the effectiveness of its innovative technologies and its capability to execute on commercialization strategies.
Genmab’s DuoBody® platform enables the creation of bispecific antibodies, while the HexaBody® platform enhances the natural immune system’s ability to target cancer cells. These technologies are the foundation for a pipeline addressing high unmet medical needs.
Collaborations with industry leaders like Janssen, AbbVie, and Pfizer have accelerated development timelines, expanded market reach, and maximized the value of its assets. These partnerships have also facilitated the launch and growth of products such as DARZALEX and EPKINLY.
The company has successfully transitioned from a research-driven organization to a commercialization powerhouse, evidenced by its direct involvement in launching products like EPKINLY and TIVDAK in the U.S. and Japan.
With strong recurring revenues, primarily from royalty streams, and disciplined portfolio prioritization, Genmab has demonstrated its ability to deliver profitability while strategically investing in high-impact programs.
Approved for multiple indications in the treatment of multiple myeloma, DARZALEX is a cornerstone of Genmab’s success, driving substantial royalty revenues through its collaboration with Janssen.
Genmab’s wholly owned asset, developed with its DuoBody technology, has set new benchmarks in treating B-cell malignancies, marking the company’s growing independence in commercialization.
The company’s commitment to advancing late-stage assets, such as Rina-S and acasunlimab, underscores its strategic focus on high-potential therapies.
Genmab’s vision is to transform cancer treatment and improve patient outcomes through cutting-edge science and relentless innovation. With a disciplined approach to portfolio management, the company focuses its resources on assets with the greatest potential to make a difference. By integrating proprietary technology, strong partnerships, and commercialization capabilities, Genmab is positioned to sustain long-term growth and remain a leader in antibody therapeutics.
This blend of innovation, strategic execution, and financial strength provides a compelling case for investors seeking exposure to the biotechnology sector with a focus on oncology and antibody technology.
Genmab reports its revenue in three distinct segments: royalty, net product and collaboration, and milestone and reimbursement.
Royalty Revenue - 83%
This segment accounts for royalties earned from collaboration partners, primarily based on the net sales of licensed products such as DARZALEX.
Net Product and Collaboration Revenue - 12%
Derived from Genmab’s proprietary products, such as EPKINLY, where the company records direct sales in jurisdictions where it holds commercialization responsibilities This includes profit-sharing arrangements for commercialized products, such as EPKINLY and TIVDAK, where Genmab shares profits and costs with partners like AbbVie and Pfizer, depending on geographic markets.
Milestone and Reimbursement Revenue - 4%
Genmab earns milestone payments for achieving specific development, regulatory, or sales-related goals with its collaboration partners.
Why is Genmab a Buy Now?
Genmab is uniquely positioned at the crossroads of scientific innovation and commercialization excellence. The company’s recent strategic prioritization has not only streamlined its pipeline but also enhanced its ability to scale operations globally. This evolution from a research-driven to a commercially integrated biotech powerhouse underscores its readiness to capture long-term growth opportunities, particularly with its growing internal capabilities in marketing and distribution.
Genmab is now accelerating its journey toward independence, as evidenced by the commercialization of wholly owned assets like EPKINLY, which leverages DuoBody® technology. EPKINLY’s impressive adoption in the U.S. and Japan—two of the largest pharmaceutical markets globally—indicates Genmab’s potential to assert in-class leadership without over-relying on partners. This shift is a direct result of years of strategic investments in commercialization infrastructure, which will serve as a template for future proprietary launches.
Genmab’s willingness to terminate suboptimal programs, such as GEN1047 and others, reflects a disciplined approach to resource allocation. By focusing on advancing only the most promising assets—EPKINLY, Rina-S, and acasunlimab—the company demonstrates a high standard for scientific excellence. This meticulous selection process reduces the risk of dilutive investments and ensures that shareholders benefit from a pipeline aimed at addressing critical unmet medical needs with high commercial potential.
Beyond oncology, Genmab’s exploration of autoimmune and other therapeutic areas, combined with its acquisition of ProfoundBio, signals a long-term diversification strategy. With next-generation ADCs and bispecific antibodies in development, Genmab is positioning itself to capture market opportunities beyond its current focus, offering investors exposure to broader, high-growth segments of the biotechnology market.
Despite macroeconomic uncertainty and sector-specific pressures, Genmab has maintained strong financial performance, supported by recurring revenues and disciplined cost management. This resilience, evidenced by its rising operating profits and moderated SG&A growth, positions Genmab as a reliable player in a volatile biotech market. Its robust balance sheet and capacity for sustained investment in R&D provide a buffer against external shocks, making it an attractive choice for long-term investors.
With increasing regulatory approvals, such as the recent FDA breakthrough designation for EPKINLY in combination therapies, Genmab is capitalizing on its first-mover advantage in key therapeutic areas. As its pipeline continues to mature, the company’s ability to secure market exclusivity in lucrative indications will further enhance its revenue-generating potential.
In conclusion, Genmab offers a compelling investment opportunity through its innovative science, strategic execution, and growing independence in commercialization. As the company evolves into a biotech powerhouse with global reach, it stands out as a long-term growth story driven by disciplined portfolio management and groundbreaking therapeutic potential. For investors seeking exposure to high-growth biotech with a proven track record and transformative future prospects, Genmab is a clear frontrunner.
Genmab’s Potential Pitfalls
Heavy Dependence on Key Products: Genmab’s revenue is significantly reliant on DARZALEX royalties, making the company vulnerable to competitive threats or market share erosion.
Regulatory and Approval Risks: With multiple late-stage assets like EPKINLY, Rina-S, and acasunlimab in development, Genmab faces inherent risks of clinical trial failures or delayed regulatory approvals, which could impact growth prospects.
Pipeline Concentration: The strategic focus on a few high-priority late-stage programs, while efficient, may limit diversification and expose the company to heightened risk if these programs underperform.
Commercialization Challenges: As Genmab expands its proprietary commercialization capabilities, it may encounter unforeseen hurdles in scaling operations, particularly in highly competitive markets.
Partner Dependence: Despite its growing independence, Genmab still relies on partnerships with AbbVie and Janssen for several key programs, which may limit its control over strategic decisions and revenue sharing.
The Ideal Investor
If you value a company with a strong foundation in innovation, appreciate a consistent growth trajectory supported by recurring revenues, and are comfortable with the complexities of a dynamic and evolving industry, you may be the ideal investor for Genmab.
Who Might Look Elsewhere
If you prefer investments with minimal risk and predictable returns or are cautious about industries requiring significant innovation and regulatory navigation, you may want to look elsewhere.