Genmab (GMAB) Q3 2026 Earnings Call Transcript

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DATE

Thursday, Nov. 5, 2026

CALL PARTICIPANTS

• Chief Executive Officer – Jan van de Winkel
• Chief Financial Officer – Anthony Pagano
• Chief Commercial Officer – Brad Bailey
• Chief Medical Officer – Tahi Ahmadi
• Chief Development Officer – Judith Klimovsky

TAKEAWAYS

• Total Revenue — $3,238 million for the first nine months of 2026, increasing 22% due to higher DARZALEX and Kesimpta royalties along with increased EPKINLY sales.
• DARZALEX Net Sales — $12,410 million by Johnson & Johnson, representing 19% growth driven by market share gains and market growth across all regions.
• EPKINLY Global Net Sales — $491 million for the first nine months, a 47% increase resulting from growth in multiple lymphoma indications and the 2025 approval for second-line follicular lymphoma.
• Kesimpta Net Sales — $4,072 million by Novartis, growing 27% because of increased demand and strong access.
• TEPEZZA Net Sales — $1,592 million by Amgen, representing a 10% increase year over year.
• TIVDAK Global Net Sales — $131 million for the first nine months, reflecting 9% growth.
• Adjusted Operating Profit — $1,108 million for the nine-month period, increasing 9% as revenue growth funded strategic expansion.
• 2026 Revenue Guidance — $4.325 billion to $4.525 billion, with management indicating expectations for the result to land in the upper part of the range.
• 2026 Adjusted Operating Expense Guidance — $2.81 billion to $2.95 billion, with a significant step up expected in the fourth quarter for manufacturing and launch readiness.
• 2026 Adjusted Operating Profit Guidance — $1.065 billion to $1.35 billion, with management projecting an outcome above the $1.2 billion midpoint.
• Effective Tax Rate — 3.4% for the first nine months of 2026, reflecting the integration of Merus and the utilization of deferred tax assets.
• EPCORE DLBCL-2 Hazard Ratio — 0.49 for progression-free survival, demonstrating the potential for EPKINLY to change the frontline standard of care in diffuse large B-cell lymphoma.
• RAINFOL-02 Hazard Ratio — 0.29 for progression-free survival in the intent-to-treat population, supporting the ambition for Rina-S in platinum-resistant ovarian cancer.
• LiGeR-HN1 Hazard Ratio — 0.5 for overall survival, anchoring the petosemtamab program in first-line head and neck cancer.
• Cash and Cash Equivalents — $1,860 million as of Sept. 30, 2026, reflecting operating profit partly offset by working capital and debt repayments.
• Total Borrowings — $4,992 million as of Sept. 30, 2026, following the financing of the Merus acquisition.
• Petosemtamab 2029 Sales Target — $1 billion, as management reiterated its conviction in the asset’s commercial potential.
• EPKINLY Peak Sales Target — Greater than $3 billion, reflecting its expansion into earlier lines of therapy.
• Rina-S Peak Sales Target — Greater than $2 billion, supported by positive phase III results in ovarian cancer.
• Petosemtamab Peak Sales Target — Multibillion dollars, driven by potential indications in head and neck and colorectal cancers.
• Gross Leverage Target — Below 3x by the end of 2027, maintaining the company’s commitment to deleveraging after recent acquisitions.
• Headcount — 3,244 employees at the end of the period, reflecting continued investment in research and global commercial capabilities.

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RISKS

• Pagano stated, “our effective tax rate may continue to fluctuate as those integration activities progress,” noting that the 3.4% rate for the first nine months is not indicative of future periods.
• Management reported that Chugai filed a lawsuit in the Tokyo District Court asserting that activities related to EPKINLY in Japan infringe four Japanese patents.
• Management indicated that AbbVie filed a complaint alleging that the company misappropriated trade secrets relating to drug-linkers used in Rina-S and other pipeline products.

SUMMARY

Genmab A/S (GMAB -0.15%) reported a 22% increase in total revenue for the first nine months of 2026, supported by growth in its core royalty portfolio and increasing proprietary product sales. Management confirmed that the company is on track to achieve its full-year 2026 financial guidance while preparing for multiple potential product launches in 2027. Strategic focus remains on maximizing the potential of three high-impact late-stage programs—epcoritamab, Rina-S, and petosemtamab—which collectively delivered positive phase III readouts during the third quarter. The company maintained its multibillion-dollar peak sales targets for these assets and committed to reducing gross leverage to below 3x by the end of 2027 through disciplined capital allocation and execution.

• CEO van de Winkel stated, “October was a truly unprecedented month in our history, with three milestone phase III readouts, all with the potential to change how patients are treated.”
• CFO Pagano noted that approximately half of year-over-year revenue growth came from DARZALEX, while the other half was generated by EPKINLY and the remainder of the portfolio.
• Chief Medical Officer Ahmadi stated, “R-CHOP EPKINLY has a ratio of 0.49. This word unprecedented, that gets sometimes overused, but this is literally a trial at a scale of positivity that has not been seen in diffuse large B-cell for a quarter of a century.”
• Chief Commercial Officer Bailey indicated that EPKINLY adoption is growing across sites of care in the United States, with more than 97% of key customers now ordering from two or more sites.
• CFO Pagano stated, “Our guidance highlights our continued strategic discipline, with revenue growth funding targeted investments in petosemtamab, Rina-S, and launch readiness, all while maintaining strong profitability.”
• Chief Medical Officer Ahmadi noted, “We have always understood subcu to be an important lifecycle management component,” referring to the ongoing development of a subcutaneous formulation for petosemtamab.
• CFO Pagano stated, “Based upon the strong performance of our brands, coupled with focused and disciplined investment, we are very well positioned to deliver these important 2027 financial commitments.”

INDUSTRY GLOSSARY

• ADC: Antibody-drug conjugate; a class of medicines that links a monoclonal antibody to a therapeutic drug to target specific cells.
• DLBCL: Diffuse large B-cell lymphoma; a common type of non-Hodgkin lymphoma that affects B-cells.
• FL: Follicular lymphoma; a type of slow-growing non-Hodgkin lymphoma.
• FRα: Folate Receptor Alpha; a protein often overexpressed in certain cancers, such as ovarian and endometrial cancer, used as a therapeutic target.
• HNSCC: Head and neck squamous cell carcinoma; a type of cancer that starts in the squamous cells of the head and neck.
• HR: Hazard ratio; a measure of how often a particular event happens in one group compared to ano

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