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On Tuesday, Deutsche Bank (ETR:DBKGn)’s analyst Emmanuel Papadakis adjusted the price target on Genmab (NASDAQ:GMAB) A/S (GEN:DC) (NASDAQ: GMAB) to DKK1,900, a decrease from the previous DKK2,100, while maintaining a Buy rating on the stock. The revision follows the announcement regarding Genmab’s Hexabody-CD38, a potential successor to the company’s Darzalex drug.
Genmab shared the results of the data and Johnson & Johnson’s (NYSE:JNJ) decision on whether to opt-in on Hexabody-CD38. The outcome was generally considered disappointing, with Johnson & Johnson choosing not to proceed with the option. Papadakis noted that the data had some positive aspects but ultimately did not meet expectations. This decision was largely anticipated by investors over the past year due to the challenging side effects profile for autoimmune uses and restrictions from the 2019 licensing agreement, which prevent Genmab from advancing the drug in myeloma without Johnson & Johnson.
The analyst expressed that while the results were not as positive as hoped, especially in light of promising data presented at the American Society of Hematology (ASH) meeting in 2023, they allow Genmab to shift focus. The company can now concentrate on other projects in its pipeline, such as Epkinky and Rina-S, which are slower-moving, and acasinumab, which still has much to demonstrate.
Papadakis’s commentary highlighted the constraints of the 2019 licensing agreement that has limited Genmab’s ability to independently develop Hexabody-CD38 for myeloma treatment. With Johnson & Johnson’s opt-out, the asset is effectively sidelined.
The analyst concluded that while the Hexabody-CD38 data did not fulfill the optimistic expectations based on previous studies, Genmab’s story is not over. The company is expected to continue its efforts with other drug candidates in its pipeline, although these will require time to develop and prove their worth.
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