Genmab A/S Q1 FY2025 earnings call

Key Points

• Revenue grew 19% in Q1, with recurring revenues up 33%.
• Invested in late-stage pipeline programs like epcoritamab, Rina-S, and acasunlimab.
• EPKINLY became the first subcutaneous T cell engaging bispecific approved in Japan for specific lymphomas and was added to NCCN guidelines for second-line diffuse large B-cell lymphoma.
• TIVDAK received approvals in Europe and Japan, with Genmab leading commercialization efforts there.
• Presented promising data for Rina-S at SGO, showing efficacy in ovarian cancer, and anticipates data at ASCO for endometrial cancer.
• Commercialized medicines (EPKINLY and TIVDAK) saw 56% YOY sales growth, accounting for 29% of total revenue growth.

In the first quarter, Genmab's total revenue grew by 19%. Recurring revenues increased by 33%, driven by strong royalties from DARZALEX and Kesimpta, and product sales from EPKINLY and TIVDAK, which together accounted for around 29% of total revenue growth. EPKINLY posted $90 million in global sales in Q1, a 73% year-over-year increase. TIVDAK expanded its presence with approvals in Europe and Japan. DARZALEX had net sales of over $3.2 billion, a ~20% increase, translating to $450 million in royalty revenue.

Financial Guidance

• Total revenue expected in the range of $3.3 billion to $3.7 billion, with a midpoint growth of 12%.
• Recurring revenues projected to grow 18%.
• Operating expenses expected to be in the range of $2.1 billion to $2.2 billion.
• Operating profit expected in the range of $895 million to $1.4 billion, with a midpoint of $1.1 billion and 16% YOY growth.
• FX impact: Every 10-point move in exchange rate relative to guidance rate worth around $5 million in operating income/loss.

Risks

• Geopolitical uncertainty, including tariffs, which could impact the business. However, management does not anticipate significant impact on 2025 financial guidance.

Q: Set expectations for Rina-S endometrial cancer data at ASCO and commercial opportunity compared to ovarian.

A: Tahi mentioned the data is compelling, underscoring Rina-S's potential as a best-in-class ADC in endometrial. Anthony and Brad discussed commercial potential, noting endometrial and ovarian are meaningful components of Rina-S's development plan.

Q: EPKINLY sales split between follicular lymphoma and DLBCL, and duration for second-line plus follicular lymphoma submission.

A: Brad provided color on EPKINLY's sales momentum, and Tahi discussed the ongoing study for second-line plus follicular lymphoma, noting the study duration is 12 months of lenalidomide, rituximab, and epcoritamab.

Q: BD environment and R&D cost guidance.

A: Jan discussed a favorable BD environment for Genmab as a cash-rich company, and Anthony explained R&D costs are driven by the ramp-up of Phase 3 trials for acasunlimab, Rina-S, and the endometrial trial.

Q: Immunology efforts and next steps for GEN 1042.

A: Jan discussed interest in immunology with preclinical programs, and Judith provided insights on next steps for GEN 1042, noting the decision on go/no-go this year will be based on data.

Q: Other tumor types for Rina-S and COLUMBA trial.

A: Tahi discussed ongoing enrollment in non-small cell lung cancer and upcoming data, and Judith commented on EPCO's NCCN endorsement.

Q: Reconciliation of EPCORE DLBCL-2 trial readout timeline.

A: Tahi explained clinicaltrials.gov may not be updated in real-time, and accrual speed can compress the time to readout.