Copenhagen, May 8, 2026, 12:07 CEST
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.
Genmab posted a 25% jump in first-quarter revenue, hitting $896 million, up from $715 million in the same period last year. Royalty income climbed 26% to $742 million, boosted by stronger sales of Darzalex—Johnson & Johnson’s drug for multiple myeloma—and Novartis’s Kesimpta for multiple sclerosis. EPKINLY also contributed to the gains.
Operating profit slipped to $180 million, down from $188 million, and missed the $187 million FactSet consensus cited by MarketScreener. Net profit dropped sharply—to $53 million, compared with $195 million a year earlier. Genmab, however, stuck with its 2026 outlook: revenue between $4.065 billion and $4.395 billion, operating profit ranging from $900 million to $1.4 billion.
Expenses told the story. Genmab logged $45 million in acquisition and integration costs—most of it tied to severance and retention following the Merus transaction. Stripping those out, operating expenses still climbed 25% as the company pushed forward on Rina-S, petosemtamab, and started gearing up for potential launches.
Genmab CEO Jan van de Winkel described the quarter as one of “tangible progress,” highlighting the integration of Merus and advancement of EPKINLY, Rina-S, and petosemtamab. Speaking on the earnings call, van de Winkel referred to 2026 as a “catalyst-rich year,” pointing to upcoming readouts that may pave the way for launches in 2027. GlobeNewswire
EPKINLY stands out as the immediate commercial barometer. The U.S. Food and Drug Administration signed off on an sBLA—short for supplemental biologics license application—cutting the recommended 24-hour hospitalization for some patients with third-line or later relapsed or refractory diffuse large B-cell lymphoma, a tough-to-treat blood cancer.
Genmab’s proprietary lineup is “off to a strong start,” chief commercial officer Brad Bailey said, as first-quarter proprietary sales climbed 43% to $176 million. EPKINLY pulled in $137 million, up 52%. Bailey pointed to a label change that he expects will expand adoption in community and outpatient settings. MarketBeat
The landscape remains dominated by larger pharma players. J&J turned in a 22% jump for Darzalex, hitting $3.96 billion and driving up Genmab’s royalty income. Novartis paid out 29% more in Kesimpta royalties. EPKINLY’s stronger showing also pushed profit-sharing payouts higher for AbbVie, Genmab’s collaborator on the lymphoma treatment.
But there’s risk in the shift. As of March 31, Genmab was sitting on $1.52 billion in cash and cash equivalents, according to Investing.com. That’s up against $5.21 billion in borrowings. Net cash from operations? Down sharply—to $3 million, compared with $287 million previously. If trial data stumbles or adoption is sluggish, the added research, launch expenses and debt could bite harder.
Not every analyst seemed fazed by the quarterly numbers, despite the hit to the stock. BofA Securities stuck to its buy call, describing the update as “reassuring” and noting there’s “no delay to catalyst timing.” Over at Goldman Sachs, analysts bumped their Genmab price target up to 2,300 crowns from 2,200 and kept their buy stance, according to market reports. Investing.com UK
Genmab’s pipeline is deeper, and growth is still showing up. But Friday’s drop signals investors are looking for proof—Merus and the owned-drug push need to deliver sustained revenue before expenses get away from them.
