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 and Tivdak contributing significantly.

• Expanded late-stage pipeline from one to three wholly owned assets, including EPKINLY, Rina-S, and Acasunlimab, with new phase III trials initiated and BioNTech opting out of acasunlimab.

• Strategic pipeline prioritization led to discontinuation of several early-stage programs and the planned Tivdak phase III in head and neck cancer.

• Acquisition of ProfoundBio for USD 1.72 billion added next-generation ADC platforms, significant intangible assets, and broadened the clinical pipeline.

• Achieved multiple regulatory approvals and label expansions for EPKINLY/TEPKINLY and Tivdak in the U.S., Europe, and Japan.

Financial highlights

• Total revenue for the first nine months 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 period.

• 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 Darzalex, Kesimpta, EPKINLY, and Tivdak.

• EPKINLY net product sales reached DKK 1,225 million, with Tivdak net sales at $92 million year-to-date and 12 consecutive quarters of demand growth.

Outlook and guidance

• 2024 revenue guidance raised to DKK 21.1–21.7 billion, reflecting 30% growth at the midpoint.

• Operating profit (excluding acquisition/integration charges) expected at DKK 6.2–7.1 billion, up 25% at the midpoint.

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

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

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