
- Genmab’s appeal against Johnson & Johnson in an arbitration case has been denied, eliminating the potential upside for the company.
- Despite this setback, Genmab remains well positioned to create shareholder value through continued revenue growth and pipeline progression and expansion.
- The launch of Epkinly/Tepkinly and the growth of other products are expected to reduce Genmab’s reliance on Darzalex royalties.
- The head-to-head phase 2 data of GEN3014 and Darzalex represent the most important clinical catalyst for Genmab this year.
- I am ONeil Trader, a former stockbroker turned full-time independent investor. I lead the investing group Growth Stock Forum where I cover growth and biotech stocks with significant upside.
I was surprised to see shares of Genmab (GMAB) trade lower on the announcement that the arbitration appeal against partner Johnson & Johnson (JNJ) was denied. I already had written off this arbitration when it was initially lost and believed the odds of an appeal win were very low.
The stock already was trading down before the announcement and is 30% below the August price and the time of my previous article where I said Genmab was down to attractive levels and well positioned to deliver shareholder value through pipeline progression and expansion that should significantly reduce the dependence on Darzalex royalties. The price is down but I do not see the outlook as being worse than it was five months ago – I continue to see Genmab as very well positioned to create shareholder value in the following years without changes to the investment thesis.
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