M.Stanley takes neutral stance on Genmab ahead of portfolio, execution updates

Published 03/07/2025, 12:54
© Reuters.

Investing.com -- Morgan Stanley (NYSE:MS) has begun coverage of Genmab (CSE:GMAB) (NASDAQ:GMAB) with an Equal-Weight rating and a price objective of $24, reduced slightly from the previous $25 target.

The Wall Street bank sees limited near-term upside as the most impactful catalysts are expected in 2026.

“Given that particular catalysts poised to most likely re-rate GMAB stock are anticipated to occur in 2026, we assume coverage at EW rating and look toward incremental updates on development timelines and commercial execution over the remainder of 2025,” analyst Judah C. Frommer said.

Genmab is navigating a transition away from heavy reliance on Darzalex royalties and focusing more on its proprietary pipeline, particularly Epkinly, Rina-S, and acasunlimab.

Following Johnson & Johnson (NYSE:JNJ)’s decision not to opt into the HexaBody-CD38 program, Frommer says attention will shift to maximizing internal pipeline value.

For Epkinly, a supplemental BLA has been submitted in 2L+ follicular lymphoma based on the EPCORE-FL-1 study. While top-line data showed the study met one of its co-primary endpoints, progression-free survival data are still pending and expected later this year.

More significant Phase III readouts for Epkinly in earlier-line DLBCL are scheduled for 2026.

“In the near-term however, focus remains on current commercial execution strategy in the 3L+ settings for DLBCL and FL as we await key data updates,” Frommer added.

Meanwhile, Rina-S is progressing across multiple indications. At American Society of Clinical Oncology (ASCO), data in endometrial cancer showed response rates of 50% and 47% in two dose cohorts.

The company plans to initiate a pivotal Phase III trial in 2L+ endometrial cancer in the second half of 2025 and a separate trial in platinum-sensitive ovarian cancer before year-end.

Acasunlimab also remains a focus. Morgan Stanley expects updated Phase II data in 2L+ NSCLC later this year. The Phase III trial, which uses overall survival as the primary endpoint, is anticipated to read out in 2027.

In sum, though Morgan Stanley views Genmab’s management execution and pipeline-building strategy as sound, it sees 2026 as a more realistic timeframe for material stock re-rating.

In the meantime, “we look toward updates on development timelines and commercial execution over the remainder of 2025,” the bank said.

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