Genmab Stock Tumbles as Merus Deal Costs Cloud $896 Million Revenue Jump
Genmab A/S dropped roughly 10% in Copenhagen Friday, after the Danish biotech posted a steep first-quarter profit decline. Higher costs from its Merus deal and stepped-up R&D spending canceled out a healthy bump in revenue. Around midday CEST, shares were quoted at 1,586.25 Danish crowns, down 9.8%, Cboe Europe data showed on MarketScreener. Investors are watching this quarter closely, since it’s among the first to reflect what Genmab’s spending looks like as it shifts away from its traditional royalty model. Last year, Genmab struck an $8 billion deal to acquire Merus, a Dutch cancer drugmaker, picking up late-stage candidate petosemtamab for head-and-neck cancer. The move signals Genmab’s effort to lean more heavily on its own product sales instead of depending so much on its partners.
