Tuesday, on Wall Street, Genmab A/S (NASDAQ:GMAB) received a positive assessment from Truist Securities, with the firm raising its price target on the stock to $53 from $50 and maintaining a Buy rating. The upgrade comes in response to promising data presented at the American Society of Clinical Oncology (ASCO) meeting regarding the company's drug, Acasun.
The analyst from Truist Securities highlighted Acasun's performance as a key highlight among Genmab's presented data at ASCO. The drug, particularly in the treatment of PD-1 progressed lung cancer, is seen as a potential $2 billion revenue opportunity for Genmab. The confidence in Acasun's prospects has been bolstered by feedback from the company and discussions with key opinion leaders (KOLs).
In light of the new data, Truist Securities has increased the Probability of Success for Acasun to 60% from the previous 40%. This adjustment is a primary driver for the revised price target. The analyst also noted that while the current price target only accounts for the drug's use in PD-1 progressed lung cancer, there is potential for its application in other PD-1 progressed tumors, which has not been factored into the price target at this time.
The maintained Buy rating reflects the firm's ongoing endorsement of Genmab's stock. The analyst's statement reiterates the belief in the drug's potential and its significance for Genmab's financial outlook.
Genmab, a biotechnology company, is focused on developing treatments for cancer. The company's latest developments and the subsequent analyst rating underscore its position in the oncology drug market and the anticipation of its future performance based on the clinical data presented.
In other recent news, Genmab has completed its $1.8 billion acquisition of ProfoundBio, gaining worldwide rights to three clinical-stage candidates and novel ADC technology platforms. This acquisition is expected to expand Genmab's oncology portfolio and enhance patient care with innovative antibody medicines.
One of the acquired candidates, Rina-S, recently received a Fast Track designation from the U.S. FDA for the treatment of FRα-expressing platinum-resistant ovarian cancer. Genmab plans to broaden the development of Rina-S within ovarian cancer and other FRα-expressing solid tumors.
The company's operating expenses are anticipated to be at or slightly above the upper end of its previously disclosed guidance range due to additional R&D investment in advancing ProfoundBio's clinical programs. However, Genmab's revenue guidance remains unchanged, expected to be within the range of DKK 18.7 to 20.5 billion.
In the first quarter of 2024, Genmab reported strong growth with DARZALEX net sales at $2.7 billion and KESIMPTA at $637 million. The company's products, particularly DARZALEX and TIVDAK, continue to show demand growth and market penetration. Genmab expects strong growth in 2024 revenue, driven by royalty medicines and contributions from EPKINLY and TIVDAK. These are the recent developments in the company.
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