It's been a breakout week for Danish biotech Genmab A/S. Positive late-stage trial updates on two potential cancer drugs have sent the shares soaring to record levels, adding the equivalent of more than $10 billion in market value and leaving analysts scrambling to boost their price targets. The 44% weekly advance is the steepest since 2008 and extends the stock’s year-to-date gain to almost 90%.
For Genmab, founded in Copenhagen in 1999 and listed there the following year, the trial results boosted confidence that the firm has found new engines for growth beyond its blockbuster blood cancer drug. Investors entered the quarter waiting for three major clinical updates and all have now delivered positive outcomes.
A stellar week for Genmab began after European markets closed on Friday when the company said the experimental treatment known as Rina-S cut the risk of disease progression or death by 71% in a group of patients with a form of ovarian cancer. Just days later, the company said trial results showed petosemtamab, a drug in testing for head and neck cancer, lowered the chance of death by 50%.
With royalties from Genmab’s blood cancer drug Darzalex expected to decline toward the end of the decade, the firm needs to find new sources of growth. Analysts have been quick to reflect potential future gains, with Van Lanschot Kempen raising its price target to 4,900 Danish kroner. Still, the speed of the rally is making some analysts cautious, with both Jyske Bank and AL Sydbank downgrading the stock.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing