Genmab Earnings: Robust Demand for Darzalex Drives Sales as Pipeline Advances; Shares Undervalued

Narrow-moat Genmab reported solid third-quarter results highlighted by revenue of DKK 5.5 billion, representing 17% growth from the prior-year period. Strong royalty revenue from Darzalex (in partnership with wide-moat Johnson & Johnson) is continuing to drive sales. Darzalex remains entrenched in the standard of care for multiple myeloma. Net sales of Darzalex grew by 19% in the first nine months of 2024 compared with the prior-year period. Genmab's results are tracking our expectations, and we maintain our fair value estimate of DKK 2,650 per share. We forecast Genmab will achieve over DKK 21 billion in revenue in 2024, representing growth of 28% from the prior year. We view the stock as very undervalued, currently trading in 5-star territory.