On Wednesday, H.C. Wainwright maintained its Buy rating and $50.00 stock price target for Genmab A/S (NASDAQ:GMAB). The firm's decision follows Genmab's recent announcement of its third-quarter sales figures, which showed the company's DARZALEX franchise, including DARZALEX Faspro, generated net sales of $3.01 billion globally. The U.S. market contributed $1,684 million, while sales from other regions amounted to $1,332 million.
The latest sales figures for DARZALEX slightly exceeded H.C. Wainwright's projections of $3.00 billion. Based on an estimated 18.5% royalty rate for the third quarter of 2024, Genmab's royalties are expected to be approximately 3,905 million Danish kroner, a slight increase from the previously forecasted 3,881 million Danish kroner.
H.C. Wainwright highlighted Genmab's strong position in the biotech sector, noting its profitability, robust balance sheet, and leading role in the multiple myeloma market with DARZALEX. The company's extensive pipeline, which includes promising developments in antibody design and agents such as EPKINLY (epcoritamab), is also seen as a factor contributing to its resilience against sector-wide challenges.
The analyst firm pointed out that Genmab's continued success is attributed to its track record and the potential for significant clinical data in the near to medium term. The Buy rating and 12-month price target reflect confidence in Genmab's growth trajectory and its ability to maintain a strong market presence.
In other recent news, Genmab A/S has reported significant Q3 net sales for its leading product, DARZALEX, a treatment for multiple myeloma. The exact sales figures were not disclosed, but the company announced that Q3 global net sales surpassed USD 3 billion, generated through an exclusive licensing agreement with Janssen Biotech, a Johnson & Johnson company.
Genmab also disclosed a capital increase due to the exercise of employee warrants, issuing restricted stock units and warrants to employees as part of its incentive program.
The company has also made strides in pharmaceutical advancements, securing FDA approval for RYBREVANT, a lung cancer treatment developed in partnership with Janssen, and obtaining European Commission approval for TEPKINLY®, a treatment for adults with relapsed or refractory follicular lymphoma.
Turning to analyst notes, Truist Securities reduced its price target from $53 to $50. Morgan Stanley resumed coverage on Genmab, assigning an Equalweight rating. These are some of the recent developments that have been shaping the course of Genmab A/S.
InvestingPro Insights
Genmab's strong market position, as highlighted by H.C. Wainwright, is further supported by recent InvestingPro data. The company's revenue growth of 17.19% over the last twelve months, with a notable 29.58% increase in the most recent quarter, underscores its robust performance in the biotech sector. This aligns with the analyst's positive outlook on Genmab's growth trajectory.
InvestingPro Tips reveal that Genmab holds more cash than debt on its balance sheet, which corroborates H.C. Wainwright's assessment of the company's strong financial position. Additionally, the tip indicating that Genmab is a prominent player in the Biotechnology industry reinforces the analyst's view of the company's leading role in the multiple myeloma market.
Despite the recent stock price decline, with a 28.79% drop over the past year, InvestingPro data shows a P/E ratio of 18.4, suggesting the stock may be undervalued considering its growth prospects. This could present an opportunity for investors who share H.C. Wainwright's bullish stance on Genmab's future.
For readers interested in a deeper analysis, InvestingPro offers 12 additional tips that could provide further insights into Genmab's investment potential.
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