H.C. Wainwright maintained its Buy rating and $50.00 price target for Genmab A/S (NASDAQ: NASDAQ:GMAB) stock.
The endorsement follows Genmab's recent presentation at the World Conference on Lung Cancer (WCLC) in San Diego, CA, which took place earlier in September.
The company shared findings on its acasunlimab + Keytruda treatment regimen, revealing promising data on dosing intervals and patient responses.
At the conference, Genmab showcased results that suggested less frequent dosing of acasunlimab combined with Keytruda every six weeks (Q6W) might enhance T-cell functionality by allowing periods of rest, thus potentially improving the tolerability and durability of clinical responses.
The regimen also appeared to engage the 4-1BB target intermittently, which could lead to better T-cell performance compared to more frequent dosing every three weeks (Q3W).
The presented data included pharmacokinetics and pharmacodynamics (PK/PD) analyses and exposure-response (E-R) outcomes.
These results align with model predictions and observed data that support the benefits of intermittent target engagement and T-cell proliferation.
Additionally, Genmab reported that the Q6W dosing schedule demonstrated comparable response probabilities and improved survival outcomes in PD-L1 positive patients when contrasted with the Q3W dosing schedule.
Genmab's presentation also recapped findings from the American Society of Clinical Oncology (ASCO) meeting in 2024. The Q6W dosing of acasunlimab + Keytruda achieved a 30% objective response rate (ORR) and a 17% confirmed ORR, with a six-month progression-free survival (PFS) rate of 34%, and a median overall survival (mOS) duration of 17.5 months in patients with PD-L1 positive non-small cell lung cancer (NSCLC) who had previously been treated with an anti-PD1/L1 agent.
Regarding the safety profile, 18.4% of patients on the six-week dosing schedule experienced grade 3 or higher treatment-related adverse events (TRAEs), with 24.5% discontinuing treatment due to adverse events (AEs).
Based on these encouraging results, Genmab is planning to initiate a pivotal Phase 3 trial before the end of 2024.
InvestingPro Insights
Following the positive clinical data presented by Genmab at the World Conference on Lung Cancer, investors might also consider the company's financial health and market performance. According to InvestingPro, Genmab has been actively repurchasing shares, a move that could reflect management's confidence in the company's future prospects. Additionally, Genmab holds more cash than debt on its balance sheet, providing a solid financial foundation for continued research and development. With analysts revising earnings estimates upwards, the market sentiment around Genmab appears optimistic.
From a market perspective, Genmab's stock trades with low price volatility, which might appeal to investors looking for stable investments in the biotechnology sector. While the stock is trading near its 52-week low, analysts predict the company will be profitable this year, which could signal a potential upside for investors. On the financial front, Genmab's market capitalization stands at $16.88 billion, with a price-to-earnings (P/E) ratio of 21.03, which is adjusted to 20.41 for the last twelve months as of Q2 2024. The company's revenue growth for the same period is an impressive 17.19%, indicating a strong performance in its operations.
Interested readers can find additional InvestingPro Tips for Genmab, which may further inform investment decisions, at https://www.investing.com/pro/GMAB. Currently, there are 12 more tips available, offering a comprehensive analysis of the company's financial health and market position.
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