Genmab A/S completed a $2.5 billion debt package on November 18, 2025 that includes a $1.5 billion offering of 6.25 % senior secured notes due 2032 and a $1.0 billion offering of 7.25 % senior unsecured notes due 2033, both issued at par. The company also closed the syndication of a new $2.0 billion senior secured term loan “B” facility, which, together with a previously syndicated $1.0 billion term loan “A” and a $500 million revolving credit facility, provides the liquidity needed to complete the pending Merus N.V. acquisition and cover related fees.
The total financing package for the Merus deal is approximately $5.5 billion in non‑convertible debt, with the notes and term loans covering the bulk of the $8.0 billion purchase price. The notes are scheduled to close on December 3, 2025, and the term loan B facility will be available immediately to fund the transaction and associated closing costs.
The Merus acquisition is a strategic move to accelerate Genmab’s oncology pipeline. Merus’s lead asset, petosemtamab, is a late‑stage bispecific antibody with Breakthrough Therapy Designations for head‑and‑neck cancer. The deal also expands Genmab’s portfolio of late‑stage assets and supports a shift toward a wholly‑owned model, following the company’s 2024 acquisition of ProfoundBio for $1.8 billion.
Financially, the new debt will increase Genmab’s leverage, raising the gross leverage ratio to roughly 5.5× EBITDA—above the industry average of 3×. The company’s debt‑to‑equity ratio, which stood at 0.02 in September 2025, will rise but is expected to remain low relative to peers because of Genmab’s large equity base. Management has outlined a plan to deleverage to below 3.0× within 24 months, relying on strong royalty cash flows from its existing portfolio to service the new debt and reduce interest expense.
CEO Jan van de Winkel emphasized that the Merus acquisition aligns with Genmab’s long‑term strategy to become a global biotechnology leader and unlock the commercial potential of petosemtamab. While the company did not provide specific commentary on the debt‑financing structure, the move reflects a deliberate choice to use low‑cost debt to preserve equity and maintain flexibility for future growth.
The debt issuance and term loan facility position Genmab to close the Merus acquisition in early Q1 2026, strengthening its oncology pipeline and providing a platform for future product development and commercialization. The financing strategy balances the need for capital with the company’s commitment to a conservative balance sheet, setting the stage for continued expansion in the competitive oncology market.
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