In a report released yesterday, Jonathan Chang from Leerink Partners maintained a Hold rating on Genmab (GMAB – Research Report), with a price target of $28.00.
Geoff Meacham has given his Hold rating due to a combination of factors relating to Genmab’s financial prospects and the competitive landscape of its product pipeline. Despite the impressive sales of Darzalex, which Genmab significantly profits from through royalties, the anticipation of upcoming Phase II data presents both an opportunity and a risk. Investors are closely watching the potential of GEN3014 as an advanced version of Darzalex, which could extend the royalty stream and enhance Genmab’s financial position. However, the modest improvements demonstrated over Darzalex in clinical trials, coupled with the challenges of an increasingly competitive multiple myeloma market, lead to a cautious stance ahead of the forthcoming head-to-head data and Johnson & Johnson’s opt-in decision.
Meacham also takes into account the uncertainty involved in predicting whether JNJ will opt into further developing GEN3014. Although the potential for GEN3014 to bolster Genmab’s revenue is acknowledged, the complexities of forecasting JNJ’s decision, given the economic incentives to perpetuate their anti-CD38 franchise, adds a layer of unpredictability. Consequently, while there is recognized upside to Genmab’s valuation if GEN3014 succeeds, the current evidence and market dynamics warrant a Hold rating. The underlying financial modeling reflects this prudent approach, with the price target being adjusted accordingly.
Chang covers the Healthcare sector, focusing on stocks such as Kura Oncology, Zai Lab, and Genmab. According to TipRanks, Chang has an average return of -3.8% and a 33.20% success rate on recommended stocks.
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Genmab (GMAB) Company Description:
Genmab A/S is an international biotech company. It is specialized in creating and developing differentiated antibody therapeutics for the treatment of cancer. The company currently markets DARZALEX monoclonal antibody for the treatment of patients with multiple myeloma and Arzerra monoclonal antibody for the treatment of chronic lymphocytic leukemia.
Read More on GMAB:
- Genmab (Otc) (GMAB) Q4 Earnings Cheat Sheet
- Tisotumab Vedotin Marketing Authorization Application Validated by European Medicines Agency for Treatment of Recurrent or Metastatic Cervical Cancer
- Genmab, Pfizer: EMA validates for review MAA of tisotumab vedotin
- Genmab price target raised to $50 from $49 at H.C. Wainwright
- Grant of Restricted Stock Units and Warrants to Employees in Genmab
