• Total Revenue Growth: 31% increase in 2024.
• Operating Profit Growth: 26% increase in 2024.
• Cash Position: Nearly $3 billion at year-end 2024.
• Acquisition: $1.8 billion acquisition of ProfoundBio.
• Share Buyback: $500 million in 2024.
• EPKINLY Sales: $281 million in 2024.
• Tivdak Sales: $131 million in 2024.
• Recurring Revenue Growth: 35% increase in 2024.
• DARZALEX Net Sales: Nearly $11.7 billion in 2024.
• Operating Expenses: DKK13.8 billion in 2024.
• Effective Tax Rate: 14.4% in 2024.
• Net Profit: Nearly DKK7.8 billion in 2024.
• 2025 Revenue Guidance: $3.3 billion to $3.7 billion.
• 2025 Operating Profit Guidance: $895 million to $1.4 billion.
• 2025 Recurring Revenue Growth: Expected 18% increase.
• 2025 DARZALEX Sales Projection: $12.6 billion to $13.4 billion.
• Share Repurchase Plan: Approximately $370 million in 2025.

• Warning! GuruFocus has detected 2 Warning Signs with GMAB.

Release Date: February 12, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Genmab AS (NASDAQ:GMAB) achieved a 31% total revenue growth in 2024, driven by the success of its eight commercialized medicines, including EPKINLY and Tivdak.
• The company ended the year with nearly $3 billion in cash, reinforcing its financial strength and flexibility for future investments.
• Genmab AS (NASDAQ:GMAB) has 12 products or product candidates in 30 clinical trials, including 7 Phase III trials, indicating a robust pipeline.
• EPKINLY has received multiple regulatory approvals and is expected to achieve peak sales exceeding $3 billion, highlighting its market potential.
• The acquisition of ProfoundBio and the integration of Rina-S into the pipeline have been successful, with plans for two Phase III trials underway, showcasing effective strategic investments.

Negative Points

• Despite strong financial performance, the company faces significant competition in the B-cell malignancies market, which could impact EPKINLY's market share.
• The $1.8 billion acquisition of ProfoundBio and a $500 million share buyback represent substantial financial commitments that could strain resources if expected returns are not realized.
• The company's guidance for 2025 includes a decrease in nonrecurring revenue by more than $100 million, which could affect overall revenue growth.
• There is uncertainty regarding the timing and outcome of regulatory approvals for key products like Tivdak in Europe, which could delay market expansion.
• The development of new indications for products like acasunlimab and Rina-S involves high-risk clinical trials, which may not yield successful outcomes.

Q & A Highlights

Q: Can you discuss your reasons for confidence in the endometrial cancer opportunity for Rina-S and for committing to a Phase III second line plus endometrial cancer study by year-end? A: Tahamtan Ahmadi, Chief Medical Officer, explained that the data for endometrial cancer is highly competitive and robust, showing significant efficacy in patients who have undergone chemotherapy and checkpoint inhibition. This strong data drives their commitment to move forward aggressively with the Phase III study.

Q: For EPCORE and the DLBCL landscape, what do you have to show to be competitive here for EPCORE monotherapy? A: Tahamtan Ahmadi, Chief Medical Officer, stated that the NCCN has included their data with GemOx and EPCORE in second-line patients ineligible for transplant with a Type 2A recommendation. They are capturing opportunities with both chemotherapy and oral medication strategies, aiming to expand access to this novel mechanism.

Q: On EPKINLY, was there anything unusual about Q4, given that sales were flat compared to Q3? A: Brad Bailey, Chief Commercial Officer, noted a one-time accounting adjustment for sales in Europe, specifically France, which impacted the Q4 numbers. However, they remain confident in the growth trajectory of EPKINLY in core markets like the US and Japan.

Q: Could you provide more details on the acasunlimab market opportunity and the $1 billion peak sales estimate? A: Brad Bailey, Chief Commercial Officer, mentioned that acasunlimab is in a competitive space, particularly in the post-I/O setting. The market opportunity is significant, but the estimate considers factors like the treatment interval and PD-L1 positive preselection.

Q: What is the clinical development plan for Rina-S in other solid tumor indications such as lung and breast cancer? A: Tahamtan Ahmadi, Chief Medical Officer, stated that they are exploring folate receptor alpha expression in non-small cell lung cancer and triple-negative breast cancer. They have an ongoing cohort in non-small cell lung cancer with EGFR mutations and are enrolling patients to validate efficacy in these indications.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.