Genmab (GMAB) Q3 2024 earnings summary

Executive summary

• Achieved 29% year-over-year total revenue growth for the first nine months of 2024, driven by strong product sales and royalties, with EPKINLY, Tivdak, and Darzalex as key contributors.

• Advanced late-stage assets Rina-S and Acasunlimab into phase III, with Genmab assuming sole responsibility for acasunlimab after BioNTech's exit.

• Strategic pipeline prioritization led to discontinuation of several early-stage programs and a phase III Tivdak trial in head and neck cancer, focusing on key late-stage assets.

• Completed the ProfoundBio acquisition, enhancing the ADC platform, expanding the clinical pipeline, and adding significant intangible assets and goodwill.

• Multiple regulatory approvals and label expansions for EPKINLY/TEPKINLY in the U.S., Europe, and Japan, including conditional marketing authorization for relapsed/refractory follicular lymphoma.

Financial highlights

• Total revenue for the first nine months of 2024 reached DKK 15,085 million, up 29% year-over-year.

• Net profit was DKK 3,999 million, up from DKK 3,649 million in the prior year.

• Operating profit increased to DKK 4,543 million, up from DKK 3,570 million year-over-year.

• Recurring revenues grew 37%, now representing 92% of total revenue, driven by strong royalties and product sales.

• Royalty revenue was DKK 12,367 million, up 27% year-over-year, mainly from Darzalex and Kesimpta.

Outlook and guidance

• 2024 revenue guidance raised to DKK 21.1–21.7 billion, reflecting 30% growth at the midpoint, with DKK 1.4 billion expected from EPKINLY and Tivdak.

• Operating profit guidance (excluding acquisition/integration charges) improved to DKK 6.2–7.1 billion, up 25% year-over-year.

• Operating expenses (excluding acquisition/integration charges) expected at DKK 13.7–14.0 billion.

• Recurring revenue guidance increased to DKK 19.0–19.6 billion, up 34% year-over-year.

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