GMAB · Genmab A/S

Genmab's Q1 2026 results demonstrated robust top-line growth with revenue reaching $896 million, a 25% increase from $715 million in the prior year, primarily fueled by a 26% rise in royalty revenue to $742 million. This uplift was driven by stronger net sales of partner products DARZALEX ($3,964 million, up 22%) and Kesimpta under collaborations with Johnson & Johnson and Novartis, respectively, alongside growing EPKINLY net product sales. Cost of product sales increased 55% to $65 million due to profit-sharing with AbbVie on EPKINLY, while operating expenses (excluding acquisition charges) rose 25% to $606 million, reflecting investments in the late-stage portfolio including Rina-S and petosemtamab, as well as commercialization buildout for anticipated launches. One-time acquisition and integration charges of $45 million related to the Merus deal, closed in December 2025, and higher amortization of $12 million from the acquired technology platform contributed to GAAP operating profit declining slightly to $180 million from $188 million. However, adjusted operating profit improved to $237 million, signaling underlying operational strength. Net profit fell to $53 million from $195 million, with diluted EPS at $0.83, impacted by $106 million in net financial items likely tied to $5.2 billion in borrowings for the Merus acquisition. CEO Jan van de Winkel highlighted progress in integrating Merus and advancing key programs toward readouts and launches. Notably, FDA approval of an sBLA for EPKINLY removed the 24-hour hospitalization requirement for third-line plus relapsed/refractory DLBCL patients, potentially enhancing accessibility. Genmab reaffirmed its full-year 2026 guidance, projecting revenue of $4.1-4.4 billion (midpoint $4.23 billion, driven by royalties ~$2.7 billion from DARZALEX and growth in EPKINLY/Tivdak), operating expenses of $2.7-2.9 billion, and operating profit of $0.9-1.4 billion (excluding charges), assuming stable USD/DKK at 6.2 and no major new deals.