Genmab stock shows promise as H.C. Wainwright reiterates Buy rating

Investing.com - H.C. Wainwright has reiterated its Buy rating and $40.00 price target on Genmab A/S (NASDAQ:GMAB), a company currently rated ’EXCELLENT’ by InvestingPro’s comprehensive health score system, following the presentation of Phase 2 results for petosemtamab at the AACR-NCI-EORTC meeting in Boston. The company’s strong financial position is evidenced by its impressive 94.5% gross profit margins and robust 33% revenue growth over the last twelve months.

The weekend presentation revealed that petosemtamab in combination with chemotherapy achieved objective response rates (ORRs) of 90% in first-line and 62% in second-line efficacy-evaluable EGFRi-naive, RAS/RAF-WT colorectal cancer patients. As monotherapy in the third-line-plus setting, petosemtamab showed a 10% ORR.

H.C. Wainwright noted these frontline results appear superior to the 61.1% and 74.9% ORRs observed with cetuximab plus FOLFOX and panitumumab plus FOLFOX in the Phase 3 TAILOR and PRIME trials, respectively. The firm also acknowledged competing results from Johnson & Johnson’s Rybrevant, which demonstrated a 43% ORR when combined with chemotherapy in second-line treatment.

The research firm highlighted that petosemtamab’s cutaneous side effect profile was well-tolerated and manageable without pharmacologic prophylaxis, an important consideration for EGFR-targeted therapies which commonly cause side effects like rash.

H.C. Wainwright does not currently include risk-adjusted revenues for petosemtamab in metastatic colorectal cancer in its forecasts, viewing the drug as a potential driver of future upside to their projections. According to InvestingPro’s Fair Value analysis, Genmab appears undervalued at current levels, with 4 analysts recently revising their earnings estimates upward. For detailed insights and 12 additional ProTips about Genmab’s financial health and growth prospects, explore the comprehensive Pro Research Report available on InvestingPro.

In other recent news, Genmab A/S has announced its intention to acquire Merus N.V. for approximately $8 billion in an all-cash transaction. This acquisition will be funded through a combination of cash on hand and $5.5 billion in non-convertible debt financing, with completion anticipated as early as the first quarter of 2026. Following this announcement, Truist Securities raised its price target for Genmab to $49, maintaining a Buy rating on the stock. Similarly, H.C. Wainwright increased its price target to $40 while also reiterating a Buy rating, citing the acquisition as a significant factor. Additionally, Genmab presented updated clinical trial results for its cancer drug candidate, rinatabart sesutecan, at the ESMO meeting. H.C. Wainwright reiterated a Buy rating based on these promising results. Leerink Partners also raised its price target to $39, maintaining an Outperform rating after reviewing data from the European Society for Medical Oncology Congress 2025. These developments reflect Genmab’s ongoing strategic initiatives and advancements in cancer treatment research.

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