Core Insights - Genmab A/S published its Annual Report for 2025, highlighting significant business progress, financial performance, and outlook for 2026 [1] Business Progress - Epcoritamab (EPKINLY®) received FDA approval for earlier lines of therapy in follicular lymphoma, based on successful Phase 3 EPCORE® FL-1 trial results [6] - Acquisition of Merus N.V. adds a late-stage breakthrough therapy asset, petosemtamab, enhancing growth opportunities [6] - Tivdak® was approved in Europe and Japan for recurrent or metastatic cervical cancer, marking Genmab's first independent product launch [6] - Rina-S® expanded its Phase 3 development into endometrial cancer and platinum-sensitive ovarian cancer, receiving Breakthrough Therapy Designation from the FDA [6] - Continued development of organizational infrastructure with over 300 new hires [6] Financial Performance - Net sales of DARZALEX® reached $14,351 million in 2025, a 23% increase from $11,670 million in 2024 [6] - Global net sales of EPKINLY/TEPKINLY were $468 million in 2025, up 67% from $281 million in 2024, driven by growth in diffuse large B-cell lymphoma and follicular lymphoma [6] - Genmab's total revenue for 2025 was $3,720 million, a 19% increase from $3,121 million in 2024, primarily due to higher royalties from DARZALEX and Kesimpta [6] 2026 Outlook - Genmab projects 2026 revenue between $4,065 million and $4,395 million, with a midpoint guidance of $4,230 million [7] - Expected royalty revenue for 2026 is projected to be between $3,440 million and $3,685 million, with a midpoint of $3,563 million [7] - Anticipated operating expenses for 2026 are expected to range from $2,710 million to $2,910 million, reflecting investments in late-stage programs [13] - Projected operating profit for 2026 is estimated to be between $900 million and $1,400 million [14]

Acquisition Overview - Genmab is set to acquire Merus to deliver the next decade of sustainable growth[1, 5] - The offer price is $97 per share in cash, reflecting approximately $8 billion transaction value[24] - The tender offer for 100% of Merus' common shares is expected to close by early Q1 2026, subject to customary conditions[24] Strategic Rationale - The acquisition aligns with Genmab's 2030 Vision and capital allocation priorities[7] - It advances the shift to a wholly-owned model, positioning Genmab for sustainable long-term growth[7] - The deal is expected to be accretive to EBITDA by the end of 2029, with sustained revenue growth into the next decade[24] Petosemtamab Asset - Petosemtamab has two FDA Breakthrough Therapy Designations (BTDs) in 1L & 2L+ r/m HNSCC[7] - Topline readout of one or both 1L & 2/3L r/m HNSCC Phase 3 trials is expected in 2026[9, 15] - First launch is planned for 2027, with high confidence in multi-billion-dollar annual peak sales potential[7] Financial Impact - Genmab expects to fund the acquisition with a mix of cash on the balance sheet and $5500 million of new non-convertible debt[24] - The company anticipates returning to meaningful growth in 2027[24] - Genmab targets gross leverage of less than 30x within two years post-close[24]