What's Going On With Danish Healthcare Firm Genmab Stock?
Portfolio Pulse from Vandana Singh
An appeal arbitrator dismissed Genmab A/S's (NASDAQ:GMAB) bid for additional milestone and royalty payments from Janssen Biotech Inc, a unit of Johnson & Johnson (NYSE:JNJ), related to Darzalex (daratumumab). The decision will not affect Genmab's 2024 financial guidance. William Blair maintains a Market Perform rating on Genmab, citing strong growth from diverse revenue sources but limited initial commercial potential for Tivdak and epcoritamab. GMAB shares dropped 3.28% to $27.74.
January 23, 2024 | 6:11 pm
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POSITIVE IMPACT
Johnson & Johnson's unit Janssen won the arbitration against Genmab, avoiding additional payments for Darzalex.
Janssen's victory in arbitration is positive, potentially avoiding significant financial liabilities. The impact on JNJ's stock may be muted due to its size and diversified operations.
CONFIDENCE 85
IMPORTANCE 50
RELEVANCE 70
NEGATIVE IMPACT
Genmab's appeal for additional payments related to Darzalex was dismissed, but the decision won't affect its 2024 financial guidance. Shares fell 3.28%.
The dismissal of Genmab's appeal is a negative outcome, likely contributing to the stock's decline. However, the lack of impact on financial guidance and the Market Perform rating by William Blair suggest a limited long-term effect.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100