Executive Summary / Key Takeaways

• Genmab is rapidly transforming from a royalty-dependent entity into an integrated biotechnology powerhouse, driven by the successful commercialization of its wholly-owned antibody-based therapies and the strategic acceleration of its late-stage pipeline.
• The company's proprietary DuoBody and ADC technologies provide a significant competitive moat, enabling the development of differentiated treatments like EPKINLY and Rina-S, which are poised for blockbuster sales and are disrupting established treatment paradigms in B-cell lymphomas and gynecologic cancers.
• Strong financial performance in the first half of 2025, with total revenue growth of 19% and operating profit growth of 56%, underscores the effectiveness of Genmab's disciplined investment strategy and the increasing contribution from its commercialized products.
• Genmab's robust pipeline, featuring EPKINLY, Rina-S, and acasunlimab, is advancing rapidly with multiple Phase III trials and regulatory milestones anticipated through 2026, targeting significant market expansion and substantial peak sales opportunities.
• Despite a competitive landscape dominated by larger pharmaceutical players, Genmab's focused innovation, strategic collaborations, and strong financial foundation position it for sustained long-term growth and value creation, even as it manages the eventual patent expiration of key royalty-generating assets.

A Biotech Powerhouse Forges Its Own Path

Genmab A/S, incorporated in 1998 in Copenhagen, Denmark, has meticulously built a reputation as a leading innovator in antibody-based therapeutics. The company's journey has been marked by consistent success, with eight products, either originating from Genmab or leveraging its foundational DuoBody technology, now approved and impacting patient lives. This rich history of innovation has laid the groundwork for Genmab's current strategic pivot: a determined shift from primarily a licensor model to an integrated biotechnology company, directly commercializing its own groundbreaking medicines while continuing to benefit from robust royalty streams.

The industry landscape for oncology therapeutics is intensely competitive and rapidly evolving, characterized by a relentless pursuit of more effective and targeted treatments. Broad trends, such as advancements in personalized medicine and the increasing integration of artificial intelligence in drug discovery, are reshaping development pathways and market dynamics. While AI promises faster drug development, potentially increasing competition, Genmab's focused strategy and proprietary platforms position it to capitalize on these shifts. The company's overarching strategy is clear: accelerate the development of its high-impact late-stage pipeline, maximize the potential of its commercialized medicines, and prudently allocate capital to support sustained growth and long-term value creation.

Technological Edge: The Power of Proprietary Platforms

At the heart of Genmab's competitive advantage lies its suite of proprietary antibody technologies, most notably the DuoBody platform for bispecific antibodies and its advanced Antibody-Drug Conjugate (ADC) Tech Platform, acquired through ProfoundBio. These technologies are not merely scientific curiosities; they are the engines driving Genmab's ability to create differentiated, best-in-class therapies with tangible clinical and commercial benefits.

The DuoBody technology enables the creation of bispecific antibodies that can simultaneously bind to two different targets, offering enhanced precision and efficacy in cancer treatment. This is exemplified by EPKINLY (epcoritamab), a CD3xCD20 bispecific antibody. EPKINLY's subcutaneous administration offers a significant convenience advantage for patients and healthcare providers, facilitating broader adoption in outpatient settings. Its differentiated profile has consistently shown better efficacy and higher complete response (CR) rates compared to competing bispecifics in B-cell lymphomas. For instance, in follicular lymphoma, EPKINLY's label does not require hospitalization, a key differentiator that is accelerating its uptake in community settings. This technological edge translates directly into a stronger competitive moat, potentially leading to higher market share and improved pricing power in its targeted indications.

The ADC Tech Platform, brought in via the ProfoundBio acquisition, is another critical differentiator. This platform, responsible for rinatabart sesutecan (Rina-S), focuses on novel hydrophilic linker technology. This innovation provides Rina-S with a differentiated safety profile, notably avoiding interstitial lung disease and corneal toxicity seen with other ADC therapies. Furthermore, Rina-S has demonstrated meaningful activity across the entire spectrum of folate receptor alpha (FRα) expression, including in patients with low or technically negative FRα levels. This broad applicability, irrespective of FRα expression, significantly expands the treatable patient population beyond what first-generation FRα approaches can address. For investors, this means a larger addressable market and a potentially best-in-class profile for Rina-S, enhancing its blockbuster potential.

Genmab's R&D initiatives are strategically aligned with these technological strengths. The company is actively exploring the combinability of epcoritamab with various agents, believing its bispecific format offers a significant advantage in novel combination therapies. The HexaBody platform, while seeing the discontinuation of HexaBody-OX40 due to a lack of differentiation, is still highly valued, with a new HexaBody asset expected to enter the clinic by the end of 2025. Furthermore, Genmab is exploring the potential of its immune activator programs, like acasunlimab, in combination with ADCs, a conceptual synergy that could unlock new therapeutic avenues. These ongoing R&D efforts, backed by a significant increase in R&D investment towards late-stage programs (from 45% in 2024 to over 55% in 2025), underscore Genmab's commitment to a robust technological roadmap that underpins its long-term growth strategy.

Commercial Momentum: From Royalties to Owned Blockbusters

Genmab's financial narrative is increasingly defined by the burgeoning success of its directly commercialized medicines, EPKINLY and Tivdak, which are steadily complementing its foundational royalty revenues. This strategic evolution is evident in the company's recent performance.

In the first half of 2025, Genmab reported a robust 19% increase in total revenue, primarily driven by a 27% surge in recurring revenue. This growth was significantly bolstered by strong royalties from DARZALEX and Kesimpta, alongside the accelerating contributions from EPKINLY and Tivdak. DARZALEX, a cornerstone of Genmab's royalty stream, saw its net sales grow by nearly 22% to $6.8 billion in the first half of 2025, translating to over $1 billion in royalty revenue for Genmab. This sustained growth is fueled by continued market share gains and strong performance in the frontline multiple myeloma setting. The quality of Genmab's revenue profile continues to improve, with recurring revenues representing an impressive 97% of total revenue in the first half of 2025, up from 90% in the first half of 2024.

The performance of Genmab's owned commercialized medicines is particularly compelling. Combined sales for EPKINLY and Tivdak soared by 60% year-over-year in the first half of 2025, contributing 31% to the company's total revenue growth. EPKINLY global sales reached $211 million, marking a substantial 74% year-over-year increase. This growth is driven by accelerating adoption across sites of care and increasing new patient starts in the U.S., where EPKINLY is uniquely positioned as the only off-the-shelf dual indication bispecific approved for both DLBCL and FL. In Japan, EPKINLY's launch in third-line plus follicular lymphoma in May 2025 is off to an encouraging start, building on its uptake in large B-cell lymphoma. Globally, EPKINLY has garnered over 60 regulatory approvals, nearly 50 of which cover both indications, solidifying its leadership in the bispecific space.

Tivdak has also demonstrated strong momentum, with global sales totaling $78 million in the first half of 2025, a 30% increase over the prior year. Its launch in Japan in May 2025 marked Genmab's first independently launched medicine, with encouraging uptake. The anticipated launch in Germany, followed by other European countries, signals a new phase of Genmab's commercialization strategy as it expands its independent market presence. Tivdak has already transformed the treatment paradigm for recurrent or metastatic cervical cancer in the U.S., establishing itself as a new standard of care. This robust commercial execution, coupled with a disciplined approach to investments, is translating into strong profitability, with operating profit growing by an impressive 56% in the first half of 2025, even amidst significant strategic investments.

Pipeline Acceleration: Fueling Future Growth

Genmab's future growth trajectory is intrinsically linked to the successful acceleration and expansion of its late-stage pipeline, which includes EPKINLY, Rina-S, and acasunlimab. These three programs are identified as key drivers of significant revenue growth by the end of this decade, with substantial peak sales potential.

EPKINLY (epcoritamab) is rapidly advancing into earlier lines of therapy. In May 2025, Genmab submitted a supplemental Biologics License Application (sBLA) to the FDA for epcoritamab in second-line follicular lymphoma (FL) in combination with rituximab and lenalidomide (R-square). This sBLA was accepted for priority review in July 2025, with a target action date of November 30, 2025. Crucially, the EPCORE FL-1 study met its dual primary endpoints of progression-free survival (PFS) and overall response rate (ORR) in a preplanned interim analysis, demonstrating a statistically significant reduction in the risk of disease progression or death by 79% (hazard ratio of 0.21). These unprecedented positive results will form the basis for global regulatory submissions. EPKINLY is positioned to become a core therapy in B-cell lymphomas, with anticipated peak sales exceeding $3 billion. The frontline diffuse large B-cell lymphoma (DLBCL) study is fully accrued, with a readout anticipated in 2026, and the second-line FL Phase III study also accrued significantly faster than projected, with an earlier readout expected.

Rina-S (rinatabart sesutecan), acquired through ProfoundBio, is on track to become a best-in-class treatment for ovarian and endometrial cancers. Following encouraging data from the Phase I/II RAINFOL-01 study in advanced endometrial cancer, which showed a confirmed ORR of 50% (including two complete responses) at the 100 mg/m² dose and a disease control rate of 100%, Rina-S received FDA Breakthrough Therapy Designation for advanced endometrial cancer in August 2025. Genmab plans to have three Phase III trials for Rina-S underway by the end of 2025: an ongoing trial in platinum-resistant ovarian cancer, and new trials in endometrial cancer and platinum-sensitive ovarian cancer. The company remains on track to bring Rina-S to ovarian cancer patients in 2027, with expected peak sales in ovarian and endometrial cancers exceeding $2 billion. The strategy for Rina-S in Phase II and Phase III is not to select for folate receptor alpha expression, as data suggests efficacy across the entire spectrum, including in low or negative expressing tumors.

Acasunlimab, now a wholly-owned asset after BioNTech's strategic opt-out, is progressing rapidly. Encouraging Phase II data in combination with pembrolizumab in second-line non-small cell lung cancer (NSCLC) demonstrated a median overall survival of 17.5 months and a 12-month OS rate of 69% in CPI pretreated patients. Genmab is launching a Phase II study for acasunlimab in advanced melanoma and anticipates additional data in NSCLC in the second half of 2025. A Phase III trial in PD-L1 positive NSCLC patients who progressed on a CPI is expected to start before the end of 2024, with overall survival as the primary endpoint. Acasunlimab is expected to achieve peak sales exceeding $1 billion.

Competitive Arena: Differentiating in a Dynamic Landscape

Genmab operates within a highly competitive biotechnology landscape, facing off against pharmaceutical giants like AbbVie , Johnson & Johnson (JNJ), Merck (MRK), and Bristol-Myers Squibb (BMY). While these larger players benefit from extensive resources, diversified portfolios, and established global infrastructures, Genmab carves out its niche through specialized innovation and strategic agility.

In the B-cell lymphoma space, EPKINLY directly competes with other CD20 bispecifics. However, Genmab holds a significant competitive edge. EPKINLY is the only off-the-shelf dual indication bispecific approved in both DLBCL and FL, and it has consistently shown better efficacy and higher CR rates compared to rivals like mosunetuzumab. Its subcutaneous administration offers a distinct advantage, which Roche (RHHBY) is attempting to replicate. The recent positive Phase III data in second-line FL gives Genmab a head start, positioning EPKINLY to disrupt the current treatment paradigm where responses progressively shorten with subsequent lines of therapy. The ability to combine epcoritamab with various agents further enhances its competitive profile, with management anticipating it will become a backbone therapy in novel combinations.

In gynecologic oncology, Tivdak has already established itself as a global standard of care for recurrent or metastatic cervical cancer, a market where previous options offered low response rates. This success provides a strong foundation for Rina-S, which is entering the platinum-resistant ovarian cancer and endometrial cancer markets. Rina-S's differentiated safety profile, avoiding toxicities seen with other ADCs, and its efficacy across varying FRα expression levels, position it to address a broader patient population than current standards of care, including mirvetuximab.

For acasunlimab in NSCLC, the market is challenging, with docetaxel remaining the standard of care after many novel treatments have failed. Genmab aims to differentiate acasunlimab by offering improved response rates and durability of response in a chemo-free regimen, particularly in PD-L1 positive patients. While the market is competitive, the focus on a Q6-week dosing schedule, supported by translational data, aims to optimize its profile.

Compared to its larger rivals, Genmab's competitive advantages stem from its proprietary antibody platforms, which enable superior targeting and faster innovation cycles. Its collaborative partnerships, such as with AbbVie (ABBV) for EPKINLY, allow it to leverage shared resources and accelerate development, enhancing capital efficiency. However, Genmab's smaller operational scale can lead to higher per-product costs and potential vulnerabilities to supply chain disruptions or partnership dependencies. The company mitigates these by rigorously prioritizing its pipeline and focusing on differentiated assets. For instance, the discontinuation of early-stage programs and HexaBody-OX40 reflects a disciplined approach to maximize return on investment, ensuring resources are channeled into programs with the highest potential.

Financial Strength and Outlook

Genmab's financial performance in the first half of 2025 underscores its strategic discipline and operational efficiency. Total revenue grew by 19%, propelled by a 27% increase in recurring revenue. Operating profit saw an impressive 56% growth, reaching $531 million in net profit, even while making significant strategic investments. The company ended the first half of 2025 with approximately $3 billion in cash, reinforcing its strong financial foundation and providing ample flexibility for continued growth and expansion. This robust liquidity, coupled with a low debt-to-equity ratio of 0.03, positions Genmab favorably for future R&D and strategic M&A opportunities.

For 2025, Genmab has improved its financial guidance, projecting total revenue in the range of $3.5 billion to $3.7 billion, representing a robust 15% growth at the midpoint. This upward revision is driven by the strong performance of DARZALEX and positive EPKINLY sales momentum. Recurring revenues are anticipated to grow by 22%, further enhancing the quality of the revenue profile. Operating expenses are expected to be in the range of $2.1 billion to $2.2 billion, reflecting a disciplined investment approach that prioritizes high-impact Phase III programs. This strategic allocation is projected to yield an operating profit between $1.1 billion and $1.4 billion, with the midpoint exceeding $1.2 billion, signifying a strong 26% year-over-year growth.

Management's outlook is grounded in several key assumptions: continued strong performance of commercialized medicines, successful advancement of late-stage pipeline assets, and a disciplined capital allocation strategy. The company anticipates three potentially significant pivotal readouts for EPKINLY by the end of 2026, which could support regulatory filings and drive substantial additional revenue growth. Rina-S is on track for approval in ovarian cancer by 2027, with peak sales exceeding $2 billion in ovarian and endometrial cancers. Acasunlimab is also poised for significant market entry. These projections highlight Genmab's commitment to delivering on its financial commitments through focused investments that will position it for sustained outperformance through 2030 and beyond.

Risks and Strategic Prioritization

While Genmab's trajectory is promising, investors should consider several pertinent risks. The biotechnology sector is inherently volatile, with clinical trial outcomes and regulatory approvals posing significant uncertainties. Although Genmab has a strong track record, the failure of a pivotal trial for a key pipeline asset like Rina-S or acasunlimab could materially impact future revenue projections. Competitive pressures are intense, with larger pharmaceutical companies constantly developing new therapies. While Genmab's proprietary technologies offer differentiation, maintaining this edge requires continuous innovation and significant R&D investment.

Furthermore, Genmab's reliance on strategic partnerships, while beneficial for resource sharing and market access, introduces a degree of dependency. Changes in partner strategies, such as BioNTech's (BNTX) opt-out from acasunlimab, or the eventual patent expiration of key royalty-generating assets like DARZALEX, necessitate a robust pipeline and successful commercialization of owned products to offset potential revenue impacts. The integration of acquired assets, such as ProfoundBio, also carries operational and financial risks, including potential volatility in the effective tax rate during the integration period. Genmab's rigorous pipeline prioritization, including the termination of several early-stage programs and the decision to not pursue TIVDAK in head and neck cancer, demonstrates a proactive approach to managing these risks by focusing resources on programs with the highest probability of success and differentiation.

Conclusion

Genmab stands at a pivotal juncture, successfully executing a strategic transformation that promises to redefine its role in the global oncology landscape. By leveraging its deeply differentiated antibody technologies, the company is transitioning from a reliance on royalty streams to a future powered by its own commercialized blockbusters. The impressive financial performance in the first half of 2025, coupled with an optimistic yet disciplined outlook for 2025 and beyond, underscores the efficacy of this strategy.

The accelerated development of EPKINLY, Rina-S, and acasunlimab, each poised to address significant unmet medical needs and achieve multi-billion dollar peak sales, forms the bedrock of Genmab's long-term value proposition. Its technological leadership, particularly with the DuoBody platform and novel ADC linker technology, provides a robust competitive moat against larger rivals, enabling the company to deliver superior efficacy and safety profiles. While the competitive environment remains challenging and inherent risks in drug development persist, Genmab's strong financial foundation, strategic prioritization, and unwavering commitment to innovation position it as a compelling investment opportunity for those seeking exposure to a dynamic and growing biotechnology leader. The company's ability to consistently deliver on its commitments and expand the reach of its innovative medicines will be key indicators of its continued outperformance.