GMAB: Three positive Phase III readouts strengthen a multi-billion-dollar oncology pipeline

Genmab's shares rose 4% after Johnson & Johnson's FDA approval for Rybrevant Fasbro in head and neck cancer. Genmab will earn 8-10% royalties. Sydbank notes potential competition from Genmab's petosemtamab, which showed positive Phase 3 data.

Genmab reported positive phase III trial results for Epkinly, Rina-S, and petosemtamab, with Epkinly showing a hazard ratio of 0.49 in the EPCORE DLBCL-2 trial. Sales for Epkinly and Tivdak grew 47% and 9% year-over-year, respectively, to $491M and $131M in the first nine months of 2026. The company is preparing for potential launches in early lines of DLBCL and other indications.

Moody's revised Genmab's outlook to positive from stable, affirming its Ba2 rating. The agency expects revenue growth and debt reduction to improve credit metrics. Adjusted EBITDA is projected to rise to $1.5B-$1.7B by 2025. Liquidity remains strong with $1.9B in cash. However, reliance on Darzalex royalties and upcoming patent expirations pose risks.

Genmab (GMAB) shares fell 4.9% after Q3 revenue of $1.19B missed estimates, though EPS beat. Epkinly sales grew 47% but lagged Jyske Bank's forecast. Full-year guidance remained unchanged, disappointing some analysts. Higher costs reduced net profit. The company maintained its revenue and earnings outlook but did not raise it, despite recent clinical trial successes.

Genmab reported a 22% revenue increase in Q3 2026, driven by strong performance of Epkinly and other pipeline assets. The company expects peak sales of over $3B for Epkinly, $2B for Rina-S, and multibillion for pitucentamab. Management expressed confidence in growth despite the Darzalex royalty expiration, citing diversified growth and strong Phase 3 data. Epkinly showed a 47% increase, and the rest of the portfolio grew by 30%.

Genmab AS ADR (GMAB) reported Q3 EPS of $0.55, beating estimates by $0.20, while revenue of $1.19B missed expectations of $1.2B. The stock is up 68.77% over 3 months and 84.02% over 12 months. InvestingPro rates its financial health as 'great performance'.