Genmab, a Danish biotech company, has experienced a remarkable 48% increase in its stock price last week, contributing to a doubling of its shares over the past three months. This surge follows the successful Phase 3 trial results for petosemtamab, an experimental treatment for head and neck cancer, which demonstrated a 50% reduction in the risk of death when combined with Merck's Keytruda.
This trial is one of three significant successes for Genmab in October, including positive results for its ovarian cancer treatment Rina-S and lymphoma treatment Epkinly. CEO Jan van de Winkel emphasized that these breakthroughs signal a 'completely new era' for the company, which historically relied on royalties from partnerships with larger firms like Johnson & Johnson and Novartis.
With projected sales of $16.5 billion to $16.9 billion for Darzalex, Genmab's royalty income is substantial, but the company is shifting towards retaining more revenue from its own products. Analysts from Jefferies estimate that petosemtamab could generate $3.5 billion in peak annual sales, with potential for further expansion into other cancer indications.
Genmab's strategy includes increasing its ownership of new medicines, having fully acquired petosemtamab and Rina-S, while sharing profits from Epkinly with AbbVie. The company is also expanding its commercial capabilities to reach a broader patient base, aiming to treat around 500,000 patients by the 2030s.
However, van de Winkel acknowledged the challenges of increased costs and risks associated with this strategy, particularly in light of geopolitical and pricing pressures