Genmab(GMAB) - 2025 Q2 - Quarterly Report

Financial Performance - Genmab's revenue for the first half of 2025 increased by 19% to $1,640 million, up from $1,382 million in the same period of 2024[11]. - Royalty revenue rose by 24% to $1,378 million, driven by higher net sales of DARZALEX and Kesimpta[11]. - Net sales of DARZALEX reached $6,776 million, a 22% increase from $5,570 million in the first half of 2024[11]. - Operating profit for the first half of 2025 was $548 million, compared to $352 million in the first half of 2024[13]. - Basic net profit per share for the first half of 2025 was $5.44, compared to $3.15 in the same period of 2024[19]. - Net profit for the first six months of 2025 was $531 million, an increase of 34% compared to $395 million in the same period of 2024[131]. - Revenue for Q2 2025 reached $925 million, a 19% increase from $779 million in Q2 2024[147]. - Net product sales for the first six months of 2025 were $176 million, compared to $109 million in the same period of 2024, marking a 62% increase[182]. Guidance and Projections - Genmab updated its full-year revenue guidance to a range of $3,500 - $3,700 million, with a midpoint of $3,600 million[14]. - Genmab expects 2025 revenue to be in the range of $3.5 - $3.7 billion, an increase from the previous guidance of $3.3 - $3.7 billion[21]. - Operating profit guidance for 2025 has been revised to a range of $1.1 - $1.4 billion, up from the previous range of $0.9 - $1.4 billion[24]. - Genmab maintains its operating expenses guidance for 2025 at $2.1 - $2.2 billion[23]. Research and Development - The company has a proprietary pipeline of 10 investigational medicines in clinical development, including EPKINLY and Tivdak[28]. - Epcoritamab (EPKINLY/TEPKINLY) is approved for certain B-cell malignancies in multiple territories, including the U.S., Europe, and Japan[32]. - The company is conducting over 40 clinical trials for Epcoritamab, including five Phase 3 trials[33]. - Acasunlimab (GEN1046) is in a Phase 3 trial for PD-L1 positive metastatic NSCLC, recruiting patients[42]. - GEN1042 (DuoBody-CD40x4-1BB) is co-developed with BioNTech, with ongoing clinical trials in solid tumors[47]. - GEN1160 is a CD70-targeted ADC currently in a Phase 1/2 clinical study for advanced renal cell carcinoma and nasopharyngeal carcinoma[51]. - GEN1286 is an ADC targeting EGFR and cMet, with a Phase 1/2 clinical study in advanced solid tumors currently recruiting[58]. Collaborations and Partnerships - Genmab's collaboration with AbbVie for Epcoritamab includes shared commercialization responsibilities in the U.S. and Japan[34]. - Genmab and Pfizer have a joint commercialization agreement for Tivdak, with Genmab leading operations outside the U.S. and China, while Pfizer leads in the U.S.[39]. - Genmab's collaboration with J&J focuses on developing bispecific antibodies using the DuoBody technology platform, leading to multiple approved therapies[81]. Financial Position - Total assets as of June 30, 2025, were $6,464 million, an increase from $6,414 million on December 31, 2024[137]. - Total liabilities decreased to $1,162 million as of June 30, 2025, from $1,277 million on December 31, 2024, a reduction of 9%[138]. - Shareholders' equity increased to $5,302 million as of June 30, 2025, up 3% from $5,137 million on December 31, 2024[139]. - Cash and cash equivalents at the end of Q2 2025 were $1,296 million, compared to $622 million at the end of Q2 2024[153]. Expenses and Costs - Total costs and operating expenses increased by 6% to $1,092 million, primarily due to pipeline expansion and profit-sharing amounts payable to AbbVie[13]. - Research and development expenses increased by 4% to $723 million in the first half of 2025, compared to $696 million in the same period of 2024, driven by the addition of ProfoundBio related expenses[109]. - Selling, general and administrative expenses rose by 11% to $270 million in the first half of 2025, compared to $243 million in the first half of 2024, primarily due to the expansion of commercialization capabilities[113]. Market and Sales Risks - The company anticipates risks related to sales performance of its products, including Tivdak and EPKINLY/TEPKINLY[26]. - Genmab's financial guidance is subject to change based on various factors, including collaboration milestones and market conditions[25]. - The company faces risks related to evolving trade policies and potential regulatory delays impacting clinical milestones and product launches[83].