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Genmab increased operating profit more than expected in 2024
Danish pharmaceutical company Genmab reports sales in line with expectations for the full year 2024. Operating profit was better than expected.
Revenue rose 30.7% to DKK 21,526 million (16,474), compared to the Factset analyst consensus of 21,437.
Operating profit was DKK 6,703 million (5,321), with an expected operating profit of 6,508. The operating margin was 31.1 percent (32.3).
Genmab presents forecasts for 2025 in US dollars.
Revenues are expected to be in the range of $3,340-3,660 million, expected to be $3,471 million. In 2024, the level was $3,124 million.
Operating profit is forecast to be in the range of $895-1,365 million, expected to be $1,061 million. In 2024, operating profit was 973 million.
| Genmab, Mdkk | 2024 | Consensus | Change from consensus | 2023 | Change from consensus |
| Net turnover | 21 526 | 21 437 | 0,4% | 16 474 | 30,7% |
| Operating result | 6 703 | 6 508 | 3,0% | 5 321 | 26,0% |
| Operating margin | 31,1% | 30,4% | 32,3% |
Consensus data from Factset
2024 ACHIEVEMENTS
Business Progress
- EPKINLY®/TEPKINLY® (epcoritamab) became the first and only subcutaneous (SC) bispecific antibody approved in both the U.S. and Europe to treat both relapsed or refractory follicular lymphoma (FL) and relapsed or refractory diffuse large B-cell lymphoma (DLBCL) after two or more lines of systemic therapy
- Acquisition of ProfoundBio Inc. (ProfoundBio), granting Genmab worldwide rights to multiple candidates in development (including rinatabart sesutecan (Rina-S™)) plus ProfoundBio’s novel antibody-drug conjugate (ADC) technology platforms
- Genmab submitted a supplemental Japan New Drug Application (J-NDA) to the Ministry of Health, Labour and Welfare (MHLW) for SC EPKINLY for the treatment of relapsed or refractory FL after two or more lines of systemic therapy
- Tivdak® (tisotumab vedotin-tftv) received full U.S. Food and Drug Administration (U.S. FDA) approval to treat recurrent or metastatic cervical cancer
- Genmab submitted a J-NDA to the MHLW for Tivdak for the treatment of advanced or recurrent cervical cancer
- Genmab assumed sole responsibility for the continued development and potential commercialization of acasunlimab
- Two Genmab wholly owned programs, Rina-S and acasunlimab, moved into Phase 3 development
- Multiple programs entered clinical-stage development including GEN1059 (BNT314, DuoBody®-EpCAMx4-1BB), GEN1055 (BNT315, HexaBody®-OX40), GEN1057 (DuoBody-FAPαxDR4) and GEN1286 (EGFRxcMET ADC)
- Additional regulatory approvals for J&J therapies DARZALEX FASPRO® (daratumumab and hyaluronidase fihj) and RYBREVANT® (amivantamab)
- Approval of Amgen’s TEPEZZA® (teprotumumab) in Japan for the treatment of active thyroid eye disease
- Continued development of Genmab’s broader organizational infrastructure with the addition of over 600 new colleagues
Financial Performance
- Net sales of DARZALEX® by J&J were USD 11,670 million in 2024 compared to USD 9,744 million in 2023. The increase of USD 1,926 million, or 20%, was driven by share gains in all regions.
- Global net sales of EPKINLY/TEPKINLY were USD 281 million in 2024. Net product sales in the U.S. and Japan by Genmab were DKK 1,743 million in 2024 compared to DKK 421 million in 2023. EPKINLY was approved in the U.S. in May 2023 and in Japan in September 2023.
- Royalty revenue amounted to DKK 17,352 million in 2024 compared to DKK 13,705 million in 2023. The increase of DKK 3,647 million, or 27%, was primarily driven by higher DARZALEX and Kesimpta® (ofatumumab) royalties achieved under our daratumumab collaboration with J&J and ofatumumab collaboration with Novartis, respectively.
- Genmab’s revenue was DKK 21,526 million in 2024 compared to DKK 16,474 million in 2023. The increase of DKK 5,052 million, or 31%, was primarily driven by higher DARZALEX and Kesimpta royalties achieved under our collaborations with J&J and Novartis, respectively. Increased EPKINLY net product sales, driven by a strong product launch in 2023 with a full year of net sales in 2024, also contributed to increased revenue in 2024.
- Genmab’s operating expenses, including acquisition and integration charges related to ProfoundBio, were DKK 13,838 million, compared to DKK 10,927 million in 2023. In addition to the acquisition of ProfoundBio, this increase was driven by the increased and accelerated advancement of epcoritamab under our collaboration with AbbVie, the addition of ProfoundBio related research and development expenses, primarily Rina-S, advancement of acasunlimab and DuoBody-CD40x4-1BB under our collaboration with BioNTech SE (BioNTech), further progression of pipeline products, EPKINLY launch in the U.S. and Japan, the continued development of Genmab’s broader organizational capabilities, and related increase in team members to support these activities.
- Operating profit was DKK 6,703 million in 2024 compared to DKK 5,321 million in 2023, an increase of DKK 1,382 million, or 26%.
2025 OUTLOOK
| (USD millions) | 2024 Actual Result | 2025 Guidance | 2025 Guidance Mid-Point | 2024 Growth % | 2025 Growth %* |
| Revenue | 3,124 | 3,340 – 3,660 | 3,500 | 31% | 12% |
| Royalties | 2,518 | 2,785 – 3,015 | 2,900 | 27% | 15% |
| Net product sales/Collaboration revenue** | 316 | 415 – 460 | 438 | 199% | 39% |
| Milestones/Reimbursement revenue | 290 | 140 – 185 | 162 | -2% | -44% |
| Gross profit | 2,981 | 3,120 – 3,420 | 3,270 | 26% | 10% |
| Operating expenses | (2,008) | (2,055) – (2,225) | (2,140) | 27% | 7% |
| Operating profit | 973 | 895 – 1,365 | 1,130 | 26% | 16% |
*Mid-point of guidance range
**Net product sales and collaboration revenue consists of EPKINLY net product sales in the U.S. and Japan, and Tivdak (Genmab’s share of gross profits).
Revenue
Genmab expects its 2025 revenue to be in the range of USD 3.3 – 3.7 billion, compared to USD 3.1 billion in 2024.
Genmab’s projected revenue growth for 2025 is driven by higher royalties, net product sales and collaboration revenue. Royalty growth relates mainly to DARZALEX and Kesimpta net sales growth. Net product sales and collaboration revenue growth is driven by strong performance for both EPKINLY and Tivdak. Net product sales and collaboration revenue consists of EPKINLY net product sales in the U.S. and Japan, and Tivdak (50% gross profit share).
Genmab’s projected revenue for 2025 primarily consists of DARZALEX royalties of approximately USD 2.2 billion at the midpoint. Such royalties are based on estimated DARZALEX 2025 net sales of USD 12.6 – 13.4 billion compared to actual net sales in 2024 of USD 11.7 billion. DARZALEX royalties are partly offset by Genmab’s share of J&J’s royalty payments to Halozyme Therapeutics, Inc. (Halozyme) in connection with SC net sales as well as royalty reduction in countries and territories where there is no Genmab patent coverage.
The remainder of Genmab’s revenue consists of royalties from Kesimpta, TEPEZZA, RYBREVANT, TECVAYLI®, TALVEY® and TEPKINLY, net product sales and collaboration revenue from EPKINLY and Tivdak, reimbursement revenue and milestones.
Operating Expenses
Genmab anticipates its 2025 operating expenses to be in the range of USD 2.1 – 2.2 billion, compared to USD 2.0 billion in 2024. The increase in operating expenses is primarily related to investments in late-stage programs and launch readiness in key markets.
Operating Profit
Genmab expects its 2025 operating profit to be in the range of USD 0.9 – 1.4 billion, compared to USD ~1.0 billion
More information on the Risks and Assumptions for the 2025 Financial Guidance can be found in the 2024 Annual Report available on our website www.genmab.com/investor-relations.
