After a series of successful trials with major cancer drugs, the stock price of Danish biotechnology company Genmab has doubled over the past three months, which has also injected new momentum into the company's strategy to gain greater control over the research, development, and sales of its medications.
The stock price of this company, with a market value of about $35 billion, soared 48% last week. In particular, after announcing strong results from an experimental treatment for head and neck cancer petosemtamab, the stock price jumped 29% in a single day. This announcement represents the third successful phase three clinical trial achieved by Genmab in October, following previous positive results from its treatments for ovarian cancer and lymphoma.
After spending nearly 30 years building Genmab into one of Europe's renowned biotech companies, CEO Jan van de Winkel stated to CNBC last Friday that these breakthroughs mark “a brand new era.”
Historically, Genmab mainly profited from royalties for its involvement in the development of drugs, including Johnson & Johnson's multiple myeloma medication Darzalex and Novartis' Kesimpta. Van de Winkel indicates that Johnson & Johnson's Darzalex sales this year are expected to reach $16.5 billion to $16.9 billion, and Genmab could earn up to 20% in royalties.
Today, Genmab is leveraging this financial strength to create a business model that allows for a larger proportion of revenue to be retained from its own therapies.
Breakthrough in Cancer Treatment
The biggest market reaction came from the news released by Genmab on October 28: in a phase III trial for patients with recurrent or metastatic head and neck cancer, the combination of petosemtamab and Merck's Keytruda reduced the risk of death by 50% compared to using Keytruda alone.
According to Genmab, this combined therapy also significantly increased the response rate and did not show any new safety concerns.
Van de Winkel said to CNBC that this combined approach "has the potential to establish a brand-new treatment standard," but he refused to clarify whether the survival data can be maintained as the data further matures, on the grounds that the complete data has not yet been released.
A few days ago, Genmab also reported that in a phase III trial for ovarian cancer, its drug Rina-S reduced the risk of disease progression or death by 71% and the risk of death by 57% compared to chemotherapy.
Barclay analysts stated that this result exceeded investors' expectations and indicates that Rina-S may provide an alternative option for patients who are not suitable for AbbVie's competing drug Elahere or for those whose cancer has progressed despite taking the medication. However, they also noted that there are limitations to cross-trial comparisons.
The third late-stage trial in October was a success, thanks to the drug Epkinly jointly developed with AbbVie. When used in combination with standard chemotherapy, this drug reduced the risk of disease progression or death by 51% in patients with diffuse large B-cell lymphoma who had not previously received treatment.
Analysts believe that petosemtamab has significant commercial potential, and this potential may extend beyond its initial target market.
Jefferies analysts stated that the global annual sales peak for this drug in treating recurrent or metastatic head and neck cancer could reach $3.5 billion; if the indications are expanded to include locally advanced diseases, there could be an additional $3.5 billion in sales opportunities, a point that they believe investors have not fully recognized yet.
Van de Winkel No specific figures were given, but it was indicated that he expects petosemtamab to become a “billion-dollar drug”.
Genmab will announce its third-quarter results on November 5th.
Antibody drug expert
The business of Genmab is built on antibody drugs, which includes bispecific antibodies like petosemtamab. These antibodies are capable of binding to two different targets on cancer cells simultaneously.
Petosemtamab targets two proteins, EGFR and LGR5. The design objectives include both interfering with the signals that aid in the growth of cancer cells and promoting the immune system to attack tumors.
Van de Winkel indicates that Genmab's expertise in antibodies and their interaction with the immune system also helps the company identify promising drugs developed by other enterprises. In 2025, the company acquired petosemtamab through a $8 billion Merus acquisition deal, and in 2024, it obtained Rina-S through a $1.8 billion acquisition of ProfoundBio.
These transactions are also at the core of the business model transformation of Genmab.
Genmab holds full ownership of petosemtamab and Rina-S, while Epkinly shares the commercial profits equally with AbbVie; in comparison, these equity proportions are much higher than their share of profits from collaborations with Johnson & Johnson and Novartis.
Van de Winkel said, "From now on, I will retain ownership of these new drugs increasingly more."
At present, Genmab has conducted a total of 15 phase III trials involving its three core compounds.
He said, "This model is beginning to be validated, and synergy is starting to form. I think the market has finally understood this at this stage."
The Merus transaction highlights the scale of this bet. To facilitate the payment for this acquisition, Genmab borrowed $5.5 billion and relied on its royalty income as a financial backup in case petosemtamab fails.
New Chapter
Having more ownership over the drugs also means having to take on more sales work. Van de Winkel indicates that the company already has most of the necessary infrastructure in place, as it has established commercialization capabilities around existing therapies, including Epkinly developed in collaboration with AbbVie, as well as Tivdak developed in partnership with Pfizer.
The company is expanding its sales network in Europe and hopes to reach more cancer patients in the United States through the community healthcare system, rather than relying solely on specialized hospitals.
Van de Winkel indicates that by the 2030s, Genmab he hopes the number of patients covered by most of the drugs he holds in his portfolio will reach about 500,000, while currently this number is less than 30,000.
He also acknowledged that large pharmaceutical companies might be interested in Genmab, and stated that Genmab is likely to be “at the top of their list of priorities,” but he emphasized that his goal remains to build an independent European biotechnology company.
However, higher ownership also means having to bear more costs and risks associated with clinical trials, regulatory approvals, and commercialization.
Van de Winkel It is acknowledged that geopolitical changes and pressures on drug pricing may complicate expansion plans and alter the sequence in which Genmab launches drugs in different markets.
