Genmab Q3 2024 $GMAB (-3.33%)

Financial performance:

• Revenue: Total revenue for the first nine months of 2024 amounted to DKK 15.085 million, an increase of 29% compared to DKK 11.715 million in the same period in 2023.
• Net profit: Net profit for the first nine months of 2024 amounted to DKK 3.999 million, compared to DKK 3.649 million in the same period last year.

Balance sheet overview:

• Total assets: As of September 30, 2024, total assets amounted to DKK 39.660 million, an increase against DKK 35.335 million as of December 31, 2023.
• Equity: Equity at September 30, 2024 was DKK 31.922 million, compared to DKK 31.656 million at December 31, 2023.

Profit and loss account:

• Operating result: Operating profit for the first nine months of 2024 amounted to DKK 4,543 million, compared with DKK 3,570 million in the prior-year period.
• Operating expenses: Operating expenses amounted to DKK 10.542 million compared to DKK 8.145 million in the same period in 2023.

Cash flow overview:

• Operating activities: Net cash flow from operating activities amounted to DKK 5,059 million for the first nine months of 2024, compared with DKK 5,708 million in the same period in 2023.
• Investing activities: Net cash flow for investing activities amounted to DKK -9.989 million, primarily due to the acquisition of ProfoundBio.
• Financing activities: Net cash flow for financing activities amounted to DKK -3.922 million, primarily due to the repurchase of own shares.

Key ratios and profitability metrics:

• Equity ratio: Equity ratio decreased to 80% at September 30, 2024, compared to 90% at December 31, 2023.
• Earnings per share: Basic earnings per share for the first nine months of 2024 amounted to DKK 62.09, compared with DKK 55.88 in the prior-year period.

Competitive position:

• Genmab has entered into over 20 strategic partnerships with companies in the biotechnology and pharmaceutical industries.

Forecasts and management commentary:

• Revenue forecast: Revenue guidance for 2024 updated to DKK 21.1 - 21.7 billion, reflecting growth of 30% YoY.
• Operating profit: Operating profit forecast raised to DKK 6.2 - 7.1 billion (excluding acquisition and integration costs).

Risks and opportunities:

• Risks: A lawsuit filed by Chugai in Japan against Genmab and AbbVie for alleged patent infringement in connection with EPKINLY.
• Opportunities: Expansion of the product pipeline and further development of own clinical products.

Summary of results:

Positive aspects:

• Sales growth: Sales increase of 29%.
• Net profit increase: Net profit increased to DKK 3,999 million.
• Strategic acquisitions: Acquisition of ProfoundBio to strengthen the product pipeline.
• Improved forecast: Adjusted revenue and operating profit forecast.
• Strong partnerships: More than 20 strategic partnerships.

Negative aspects:

• Decrease in cash flow: Decrease in cash generated from operating activities.
• Rising liabilities: Increased level of debt.
• Decrease in equity ratio: Decrease in equity ratio from 90% to 80%.
• Patent lawsuit: Ongoing patent lawsuit in Japan.
• High acquisition costs: High capital outflow due to the acquisition of ProfoundBio.