Morningstar | Genmab's Earnings Beat Expectations With Strong Darzalex Sales; Higher Royalty Rate for 2019
No-moat Genmab reported a strong close to fiscal 2018, finishing with over DKK 3 billion in full-year sales, up nearly 28% from the prior year. The full-year results were slightly above our and analyst expectations but within company guidance. The company's top-line growth was largely driven by quick uptake of Darzalex in front-line multiple myeloma (partnered with Johnson & Johnson). Johnson & Johnson reported full-year Darzalex sales of over $2 billion, meaning that the drug broke through a couple royalty tiers in the fourth quarter: 16% for $1.5 billion in sales and 18% for $2 billion in sales. After accounting for the new royalty tiers, we don't anticipate any changes to our fair value estimate of DKK 1,160 per share. Although we believe Darzalex will produce robust sales in multiple myeloma, we are maintaining our no-moat rating due to Genmab's lack of diversification, which makes the company extremely reliant on Darzalex sales.Operating expenses increased over 60%, largely in line with our expectations, as the company invests in its pipeline, which includes combination therapies with Darzalex in multiple myeloma as well as tisotumab vedotin in cervical cancer. Further, the company noted increases in personnel costs, which resulted in 2019 guided operating expense slightly above our expectations. After these adjustments, we expect over 50% revenue growth in 2019 and over 30% growth in 2019 earnings per share.
Genmab is a biotechnology company specializing in the creation and development of differentiated human antibody therapeutics focused on the treatment of cancer. Co.'s product pipeline includes one marketed product, Arzerra, daratumumab in late stage clinical development, four antibodies in clinical development, and over 20 in-house and partnered pre-clinical programs. Co.'s Arzerra (ofatumumab) is a human monoclonal antibody which targets an epitope on the CD20 molecule. Co.'s proprietary technologies include the DuoBody technology, which creates antibodies that can target two molecules at once, and the HexaBody technology, which allows for the creation of more potent antibodies.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
We have operations in 27 countries.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.