Genmab (GMAB) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 rose 36% year-over-year to DKK 9,545 million, driven by strong royalty and product sales, especially from DARZALEX and Kesimpta.

• Completed acquisition of ProfoundBio for DKK 13.1 billion, adding Rina-S, three clinical candidates, and ADC technology platforms to the pipeline.

• Achieved significant regulatory milestones: Epkinly and Tivdak received key U.S. and European approvals and label expansions.

• Two wholly owned assets, acasunlimab and Rina-S, are set to enter late-stage development by year-end.

• Updated 2024 guidance reflects higher revenue and increased R&D investment post-acquisition.

Financial highlights

• Total revenue for H1 2024 exceeded DKK 9.5 billion, up from DKK 7,003 million in H1 2023.

• Net profit for H1 2024 was DKK 2,733 million, up from DKK 1,545 million in H1 2023.

• Operating profit for H1 2024 was DKK 2,441 million, up from DKK 1,885 million in H1 2023.

• DARZALEX royalties grew 19% year-over-year to $5,570 million; Kesimpta royalties up 64% to $1,436 million.

• EPKINLY net product sales reached DKK 754 million in H1 2024; Tivdak net sales at DKK 60 million.

Outlook and guidance

• Full-year 2024 revenue guidance raised to DKK 20.5–21.7 billion, a 28% increase over last year.

• Operating profit guidance (excluding acquisition/integration costs) raised to DKK 5.3–7.1 billion, up 17% over 2023.

• OpEx (excluding deal/amortization costs) expected at DKK 13.7–14.3 billion, with R&D prioritized for late-stage assets.

• Recurring revenue guidance increased to DKK 18.6–19.6 billion, up 32% year-over-year at midpoint.

• Guidance assumes no significant new agreements and a USD/DKK rate of 6.8.