Genmab Earnings: Darzalex Royalty Revenue Drives Growth; Shares Undervalued

Narrow-Moat Genmab reported strong second-quarter results, highlighted by revenue of DKK 5.4 billion, representing a nearly 30% increase from the prior-year period. Genmab’s results are tracking our expectations and we maintain our fair value estimate of DKK 2,650 per share. Robust royalty revenue from Darzalex is continuing to drive sales. Darzalex, in partnership with wide-moat Johnson & Johnson, remains entrenched in the standard of care for multiple myeloma. It has continued to gain market share, driven by positive long-term overall survival data and strong adoption of Darzalex Faspro, a new subcutaneous formulation. We view the stock as undervalued, currently trading in 5-star territory and about 31% below our fair value estimate.