On Wednesday, H.C. Wainwright maintained a Buy rating and a $50.00 price target on Genmab A/S (NASDAQ:GMAB) shares. According to InvestingPro data, Genmab, with a market capitalization of $13.9 billion and impressive 96% gross margins, appears undervalued at current levels. The company maintains robust financial health with a "GREAT" overall score and holds more cash than debt on its balance sheet. The firm's analysts highlighted the recent announcement from Genmab's partner Janssen, a subsidiary of Johnson & Johnson (JNJ; not rated), regarding the Phase 3 MARIPOSA trial.
The trial's results showed that the combination of RYBREVANT (amivantamab-vmjw) and LAZCLUZE (lazertinib) demonstrated a statistically significant overall survival (OS) benefit compared to Tagrisso (osimertinib) as a first-line treatment for adult patients with locally advanced or metastatic non-small cell lung cancer (NSCLC) with EGFR exon 19 deletions or L858R substitution mutations.
The positive outcome follows the approval of the RYBREVANT combo for the first-line (1L) setting in August 2024, which was based on data presented at the European Society for Medical (TASE:PMCN) Oncology (ESMO) 2023 conference. The data showed that RYBREVANT combined with LAZCLUZE reduced the risk of disease progression or death by 30%, with a median progression-free survival (mPFS) of 23.7 months versus 16.6 months for Tagrisso.
Furthermore, the combination treatment also resulted in a greater second progression-free survival (PFS2), indicating that it is more beneficial to administer RYBREVANT and LAZCLUZE upfront rather than waiting for a second-line treatment. The analyst from H.C. Wainwright suggested that these statistically significant OS results should eliminate any hesitation among physicians over choosing the RYBREVANT combo over Tagrisso.
The firm reiterated its confidence in the stock with a 12-month price target of $50. InvestingPro analysis reveals strong fundamentals, with a healthy current ratio of 5.17 and consistently profitable operations. Subscribers can access 8 additional ProTips and a comprehensive Pro Research Report that provides deeper insights into Genmab's market position and growth potential.
In other recent news, Genmab A/S has seen a substantial increase in revenues for the first nine months of 2024, amounting to more than DKK 15 billion, a 29% rise compared to the previous year. The growth was primarily driven by the successful sales of its bispecific antibody EPKINLY, especially in Japan, and increased royalties from DARZALEX and other products. As a result, the company has upgraded its full-year revenue guidance to between DKK 21.1 billion and DKK 21.7 billion.
The company has also announced a capital increase resulting from the exercise of employee warrants, part of its employee incentive program. Additionally, Genmab disclosed transactions involving its shares by managerial employees and associated persons, and issued restricted stock units and warrants to its employees as part of the company's long-term incentive plan.
In line with its strategic focus, Genmab has decided to concentrate on Phase 3 programs, including EPKINLY, Rina-S, and acasunlimab, leading to the termination of several early-stage programs. The company is also anticipating the submission of a HexaBody-CD38 data package, underscoring its commitment to continued growth and innovation in the biotechnology industry.
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