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On Tuesday, RBC Capital Markets adjusted its price target on Genmab (CSE:GMAB) A/S (GEN:DC) (NASDAQ:GMAB) stock, reducing it from DKK2,400.00 to DKK2,300.00, while reaffirming its Outperform rating. According to InvestingPro analysis, Genmab maintains a "GREAT" financial health score and appears significantly undervalued at its current price of $20.27, trading near its 52-week low. The revision follows Genmab’s announcement regarding HexaBody-CD38 (GEN3014), a key drug candidate.
HexaBody-CD38, which was being developed in collaboration with Johnson & Johnson, was found to have only a modest efficacy benefit over Darzalex, another treatment in Genmab’s portfolio. Due to these results, neither Genmab nor Johnson & Johnson will proceed with its development. The decision was anticipated by RBC Capital, which had assigned a probability of success (PoS) of just 10% to the drug’s progression.
The discontinued development of HexaBody-CD38 has led to minor adjustments in Genmab’s mid-term forecasts, prompting the price target adjustment. However, RBC Capital maintains a positive outlook on the stock, suggesting that investor focus may shift to upcoming phase 2 updates for other Genmab drug candidates, acasunlimab and Rina-S, later in the year. The company’s solid financial position is evident in its strong balance sheet, with a current ratio of 5.25 and minimal debt exposure.
RBC Capital’s analysis reflects a broader anticipation of Genmab’s pipeline potential beyond the now-halted HexaBody-CD38. As the biotech firm continues to develop its portfolio, market observers will be watching for the phase 2 data on acasunlimab and Rina-S, which could shape the company’s trajectory moving forward.
Investors in Genmab will likely take note of these developments as they assess the company’s future prospects. The stock price target revision by RBC Capital signifies a recalibration of expectations based on the latest clinical outcomes and projected milestones for the company’s research and development activities.
In other recent news, Genmab A/S has experienced several noteworthy developments. The company reported that Johnson & Johnson decided not to proceed with the development of Genmab’s HexaBody-CD38 program, a decision that was detailed in a recent SEC filing. Despite this setback, Genmab’s financial guidance for 2025 remains unchanged, and the company continues to focus on its existing pipeline, which includes promising assets like EPKINLY, Rina-S, and acasunlimab. Analysts have weighed in on these developments, with Deutsche Bank (ETR:DBKGn) adjusting its price target for Genmab to DKK1,900 while maintaining a Buy rating. Meanwhile, William Blair upgraded Genmab’s stock rating from Market Perform to Outperform, citing the potential of Genmab’s pipeline and projecting significant future revenues. Truist Securities also revised its price target, reducing it to $45 but maintaining a Buy recommendation, emphasizing the market’s undervaluation of Genmab’s strong fundamentals. These recent developments highlight Genmab’s continued strategic focus on its robust pipeline despite the recent challenges with Johnson & Johnson.
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