Robinhood shares gain on Q2 beat, as user and crypto growth accelerate
COPENHAGEN - Danish biotech firm Genmab A/S (NASDAQ:GMAB), currently trading near its 52-week low with a market capitalization of $12.2 billion, has announced the commencement of a share repurchase plan, which aims to buy back up to 2.2 million shares for a total maximum value of DKK 4.0 billion (approximately $610 million). According to InvestingPro analysis, the stock appears undervalued based on its Fair Value metrics, with the company maintaining strong profitability indicators including a 95% gross profit margin. The program, set to start on Wednesday, is designed to reduce the company’s capital and fulfill obligations under its Restricted Stock Unit program, with completion expected by July 10, 2025.
The buyback will be conducted under a non-discretionary agreement with Goldman Sachs International, which will independently manage the trading decisions without Genmab’s influence. The transactions will be executed on Nasdaq Copenhagen and other Multilateral Trading Facilities, adhering to the stipulations of the EU’s Market Abuse Regulation and the Safe Harbour Regulation. This move aligns with the company’s track record of aggressive share buybacks, as highlighted by InvestingPro’s analysis, which reveals the company’s strong financial position with more cash than debt on its balance sheet.
Genmab has outlined strict conditions for the repurchase, including a cap on the price paid per share, which cannot exceed the higher of the last independent transaction or the highest independent bid on the trading venue at the time of purchase. Additionally, the number of shares bought on any given trading day will not surpass 25% of the average daily volume on the venue over the prior 20 trading days.
As of today, Genmab holds approximately 3.83% of its share capital in treasury shares. The company reserves the right to suspend or terminate the buyback program at any time, with a commitment to announce any such changes to Nasdaq Copenhagen. Weekly updates on the transactions made under the program will be provided upon its initiation.
This move comes as Genmab continues to focus on developing innovative antibody therapeutics for cancer and other serious diseases, leveraging its proprietary technology platforms and scientific expertise. The company’s vision for 2030 is to transform patients’ lives with their "knock-your-socks-off" antibody medicines. With an impressive current ratio of 5.25 and an Altman Z-Score of 16.28, InvestingPro’s comprehensive analysis shows the company maintains excellent financial health, earning an overall "GREAT" rating. Investors seeking detailed insights can access the full Pro Research Report, available exclusively to InvestingPro subscribers, which provides in-depth analysis of Genmab’s financial metrics, growth potential, and industry position.
The information for this article is based on a press release statement from Genmab A/S.
In other recent news, Genmab A/S has announced the initiation of a share buy-back program as part of its capital allocation strategy. This move, detailed in a Form 6-K report filed with the United States Securities and Exchange Commission, indicates the company’s confidence in its financial health and future prospects. Additionally, Genmab is facing a legal challenge from AbbVie Inc., which has filed a complaint alleging trade secret misappropriation related to antibody-drug conjugates. Genmab has denied these allegations and plans to vigorously defend itself, emphasizing its confidence in its scientific foundation.
In another development, RBC Capital Markets has adjusted its price target for Genmab stock from DKK2,400.00 to DKK2,300.00, while maintaining an Outperform rating. This revision follows the decision to discontinue the development of HexaBody-CD38, a drug candidate that showed only modest efficacy benefits. Despite this, RBC Capital remains optimistic about Genmab’s pipeline, particularly the upcoming phase 2 updates for other drug candidates like acasunlimab and Rina-S.
Furthermore, Genmab has reported the constitution of its Board of Directors and the issuance of restricted stock units and warrants to board members and employees. These equity grants are intended to align the interests of the board and employees with those of shareholders. Investors are likely to closely monitor these developments as they evaluate Genmab’s strategic decisions and ongoing legal matters.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.