Genmab(US:GMAB)2025-11-06 16:11Financial Performance - Genmab's revenue for the first nine months of 2025 increased by 21% to $2,662 million compared to $2,198 million in the same period of 2024[5]. - Royalty revenue rose by 23% to $2,219 million, driven by higher net sales of DARZALEX and Kesimpta[6]. - Net sales of DARZALEX reached $10,448 million, an increase of 22% from $8,586 million in the first nine months of 2024[6]. - Operating profit for the first nine months of 2025 was $1,007 million, compared to $662 million in the same period of 2024[6]. - The company reported a net profit of $932 million for the first nine months of 2025, compared to $581 million in the same period of 2024[11]. - Genmab's total revenue for the third quarter of 2025 was $1,022 million, a 25% increase from $816 million in the third quarter of 2024[92]. - Total comprehensive income for the nine months ended September 30, 2025, was $954 million, compared to $584 million in 2024, reflecting a 63% increase[143]. Revenue Guidance and Projections - Genmab is maintaining its 2025 revenue guidance in the range of $3.5 billion to $3.7 billion[12]. - The projected royalties from DARZALEX are expected to be between $2.3 billion and $2.4 billion, based on estimated net sales of $13.7 billion to $14.1 billion[14]. - Genmab's operating profit guidance for 2025 is set between $1.1 billion and $1.4 billion[16]. Product Development and Pipeline - At the end of Q3 2025, Genmab's proprietary pipeline included nine antibody products in clinical development, with a focus on Epcoritamab and Tivdak[19]. - Epcoritamab (EPKINLY/TEPKINLY) has received regulatory approvals in multiple territories, including the U.S., Europe, and Japan, for adult patients with relapsed or refractory DLBCL and FL after two or more lines of systemic therapy[23]. - More than 40 clinical trials are ongoing for Epcoritamab across various treatment settings, including five Phase 3 trials[23]. - Tivdak is the first and only ADC approved for recurrent or metastatic cervical cancer in the U.S., Europe, and Japan, co-developed with Pfizer[27]. Collaborations and Acquisitions - The proposed acquisition of Merus is valued at approximately $8.0 billion, expected to close in early 2026[7]. - Genmab's collaboration with AbbVie for Epcoritamab includes shared commercialization responsibilities in the U.S. and Japan[24]. - Genmab completed the acquisition of ProfoundBio for a total consideration of $1.905 billion, including $1.718 billion for outstanding shares and $187 million for equity compensation[154]. Expenses and Costs - Total costs and operating expenses increased by 8% to $1,655 million, primarily due to the expansion of the product pipeline[6]. - Research and development expenses were $1,080 million in the first nine months of 2025, a 5% increase from $1,032 million in the same period of 2024[98]. - Selling, general and administrative expenses rose to $418 million in the first nine months of 2025, a 13% increase from $370 million in the first nine months of 2024[102]. Cash Flow and Financial Position - Net cash provided by operating activities rose by $148 million to $885 million for the nine months ended September 30, 2025, driven by a $340 million increase in net profit before tax[121]. - Cash and cash equivalents, including short-term marketable securities, totaled $1,761 million as of September 30, 2025, compared to $1,380 million on December 31, 2024[140]. - Shareholders' equity increased by $614 million, or 12%, to $5,751 million as of September 30, 2025, compared to $5,137 million on December 31, 2024[129]. Market and Regulatory Environment - Genmab faces risks related to evolving trade policies and potential delays in regulatory reviews that could impact clinical milestones and product launches[70]. - The FDA accepted for priority review the sBLA for Epcoritamab in combination with R for relapsed or refractory FL, with a target action date of November 30, 2025[28].