Genmab shares reiterate Buy rating on FDA approval

On Friday, H.C. Wainwright maintained a Buy rating and a $50.00 stock price target for Genmab A/S (NASDAQ:GMAB) shares. The firm's endorsement follows the recent FDA approval of Genmab's partner Janssen's treatment, RYBREVANT (amivantamab-vmjw), for a specific type of lung cancer.

Janssen, a subsidiary of Johnson and Johnson (JNJ; not rated), announced that the FDA approved RYBREVANT in combination with chemotherapy for adult patients with advanced or metastatic non-small cell lung cancer (NSCLC) who have certain EGFR mutations and who have progressed after treatment with an EGFR-targeted tyrosine kinase inhibitor (TKI).

The FDA's decision is backed by results from the Phase 3 MARIPOSA-2 trial. At the European Society for Medical Oncology (ESMO) 2024 conference, updated trial data revealed that 18 months after treatment, half of the patients receiving RYBREVANT plus chemotherapy were still alive, compared to 40% of those who had chemotherapy alone.

The median overall survival (OS) was 17.7 months for the combination treatment versus 15.3 months for chemotherapy, with a hazard ratio (HR) of 0.73 and a 95% confidence interval (CI) of 0.54–0.99, which was statistically significant (p=0.039).

The analyst from H.C. Wainwright reiterated the positive outlook on Genmab's stock, emphasizing the successful trial results and the potential impact of the recent FDA approval on the company's prospects. The $50.00 price target reflects the firm's confidence in the stock's performance over the next 12 months.

Genmab's collaboration with Janssen has yielded a significant advancement in the treatment of NSCLC, offering a new therapeutic option for patients with EGFR exon 19 deletions or L858R substitution mutations. The endorsement from H.C. Wainwright signals continued investor confidence in Genmab's market position and its partnership's ability to deliver innovative cancer therapies.

In other recent news, Genmab A/S has seen several significant developments. The biotechnology company has presented promising data from its Phase 1/2 trial of Rina-S, a cancer treatment, at the European Society for Medical Oncology conference. The trial results showed a positive response rate in patients with ovarian and endometrial cancers, including those resistant to other therapies.

Genmab has also reported a capital increase due to the exercise of employee warrants, as detailed in a recent SEC filing. The specifics of the increase, such as the number of shares or the financial impact, were not disclosed. Moreover, the company received approval from the European Commission for its TEPKINLY® (epcoritamab) for the treatment of adults with relapsed or refractory follicular lymphoma.

In terms of analyst notes, Truist Securities reduced its price target for Genmab from $53 to $50, maintaining a Buy rating. The firm believes the current valuation does not fully recognize the company's financial performance and the potential of its product pipeline. Conversely, Morgan Stanley resumed coverage on Genmab, assigning an Equalweight rating and setting a price target of $31.00.

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