Genmab faces trade secret claims by AbbVie

Copenhagen-based biotech firm Genmab (CSE:GMAB) A/S (NASDAQ:GMAB), currently trading at $19.76 and showing strong financial health with a current ratio of 5.25, has announced its intent to "vigorously defend" against allegations of trade secret misappropriation brought forth by AbbVie Inc (NYSE:ABBV). The disclosure, made in a filing with the U.S. Securities and Exchange Commission today, comes as the latest development in a legal dispute between the two pharmaceutical giants. According to InvestingPro analysis, Genmab maintains more cash than debt on its balance sheet, suggesting financial resilience to handle potential legal challenges.

In the SEC Form 6-K report filed on Monday, Genmab detailed the accusation made by AbbVie, which claims that the Danish company improperly acquired and used confidential information related to AbbVie’s proprietary technologies. The document further states that Genmab firmly denies these allegations and is prepared to contest them. With robust revenue growth of 30.67% in the last twelve months and a healthy gross profit margin of 95.42%, the company appears well-positioned to maintain its operational focus during the legal proceedings.

The announcement was initially made in a company statement dated March 22, 2025, and has since been incorporated by reference into Genmab’s registration statements on Form S-8, implying that the matter will be considered in ongoing and future filings.

Genmab’s Executive Vice President & Chief Financial Officer, Anthony Pagano, signed the SEC filing, affirming the company’s position on the issue. The filing did not disclose specific details regarding the nature of the trade secrets in question or the circumstances under which they were allegedly misappropriated.

The SEC filing serves as a formal notice to the market and investors about the dispute, which has the potential to impact Genmab’s operations and financial standing depending on the outcome of the legal proceedings.

Genmab specializes in the creation of antibody therapeutics for the treatment of cancer and operates within the highly competitive pharmaceutical industry, where intellectual property rights and trade secrets are critical assets. The resolution of this legal challenge will be closely watched by investors and industry observers alike.

This news is based on a press release statement and the company’s commitment to defend itself suggests a potentially protracted legal battle ahead. However, the implications for Genmab’s business and its relationship with industry peers remain to be seen as the case unfolds.

In other recent news, Genmab A/S reported the constitution of its Board of Directors and the issuance of restricted stock units (RSUs) and warrants to board members and employees, aligning their interests with shareholders. RBC Capital Markets adjusted its price target for Genmab from DKK2,400 to DKK2,300, maintaining an Outperform rating. This revision follows the decision not to proceed with the development of HexaBody-CD38, a drug candidate developed with Johnson & Johnson, due to modest efficacy benefits. Deutsche Bank (ETR:DBKGn) also revised its price target for Genmab, lowering it to DKK1,900 while maintaining a Buy rating. William Blair upgraded Genmab’s stock rating from Market Perform to Outperform, citing the company’s promising pipeline despite the halted development of GEN3014. Truist Securities reduced its price target for Genmab shares to $45 from $50, continuing to recommend the stock as a Buy. They noted that the decision by Johnson & Johnson removes a significant overhang affecting investor sentiment. Analysts have expressed confidence in Genmab’s pipeline, with several potential blockbuster treatments in development, including Epkinly, Rina-S, and acasulimab.

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