Genmab’s Q1 2025 Earnings: A Catalyst for Biotech Growth?

Genmab A/S (GMAB:OL) delivered a robust first-quarter performance, reporting a 19% year-over-year (YoY) revenue increase to $715 million, driven by strong sales of its commercialized therapies and expanding pipeline. The Danish biotech’s results highlight a strategic pivot toward late-stage drug development and global commercialization, positioning it as a leader in oncology and autoimmune therapies. This analysis explores the key drivers of Genmab’s success and its growth trajectory in 2025 and beyond.

Revenue Growth: A Diversified Engine

Genmab’s Q1 revenue growth was fueled by a mix of royalty streams, product sales, and collaboration revenue, with recurring revenue surging 33% to $752 million (mid-point of guidance). The standout performance came from its royalty portfolio, which grew 30% YoY to $589 million. This was primarily due to J&J’s DARZALEX® (daratumumab) and Novartis’ Kesimpta® (ofatumumab), two drugs where Genmab retains significant royalty rights.

However, milestone and reimbursement revenue fell 61% to $35 million, reflecting the inherent variability of one-time payments. This dip was offset by strong growth in net product sales/collaboration revenue (+30% to $91 million), driven by its owned therapies EPKINLY/TEPKINLY and TIVDAK, which are now core contributors to Genmab’s revenue stream.

Product Performance: EPKINLY and TIVDAK Lead the Way

Genmab’s bispecific antibody EPKINLY (epcoritamab) and ADC TIVDAK (tisotumab vedotin) are the engines of its commercial success:

1. EPKINLY:
2. Revenue: Generated $90 million in net sales (up 73% YoY), solidifying its position as a first-line treatment for relapsed/refractory diffuse large B-cell lymphoma (DLBCL).
3. Regulatory Milestones:
   • Secured Japan’s second indication for relapsed/refractory follicular lymphoma (FL) and DLBCL, becoming the first bispecific antibody approved there for these indications.
   • Gained Category 2a NCCN recommendation for R/R DLBCL, enhancing its adoption by oncologists.

4. Pipeline Progress: Phase 3 trials for first-line DLBCL and FL are ongoing, with data expected to further expand its label and sales.

5. TIVDAK:

6. Revenue: Increased 22% YoY to $33 million, supported by approvals in Japan and the EU for second-line recurrent/metastatic cervical cancer (r/m CC).
7. Clinical Validation: NCCN guidelines upgraded TIVDAK to Category 1 Preferred for second-line r/m CC and added a Category 2b recommendation for PD-L1+ patients combined with pembrolizumab.

Pipeline Catalysts: Rina-S and Acasunlimab

Genmab’s late-stage pipeline is its next growth frontier, with two programs nearing pivotal data:
- Rina-S (rinatabart sesutecan): A first-in-class FRα-targeting ADC in Phase 3 trials for platinum-resistant ovarian cancer (PROC) and endometrial cancer. At the SGO meeting, Rina-S showed a confirmed ORR of 44% in PROC and minimal safety concerns (no ocular toxicity or neuropathy), positioning it as a potential best-in-class therapy.
- Acasunlimab: A PD-1 inhibitor with Phase 2 data expected in 2025 for second-line NSCLC, targeting a market with high unmet need.

Financial Outlook and Strategic Priorities

For 2025, Genmab raised its revenue guidance to a $3.34–3.66 billion range (+12% YoY midpoint), with operating profit projected to grow 16% to $1.13 billion. Key priorities include:
- Accelerating Commercialization: Expanding EPKINLY and TIVDAK into new markets, such as Japan and the EU.
- Pipeline Investment: Allocating 7% more to R&D ($2.14 billion total), focusing on late-stage assets like Rina-S and epcoritamab.
- Capital Returns: Initiating a share buyback program and maintaining a $3.2 billion cash war chest, ensuring financial flexibility.

Conclusion: A Strong Foundation for Sustained Growth

Genmab’s Q1 results underscore its transition from a royalty-dependent biotech to a commercial-stage leader with multiple growth drivers. The 19% revenue surge, driven by EPKINLY and TIVDAK’s strong sales, and the 62% YoY jump in operating profit reflect operational efficiency and strategic execution.

The pipeline’s near-term catalysts—Rina-S data in 2025 and EPKINLY’s first-line approvals—position Genmab to sustain growth. With a $3.2 billion cash balance and a disciplined approach to R&D and commercialization, the company is well-equipped to navigate potential headwinds like milestone revenue variability.

Investors should monitor upcoming data readouts at ASCO 2025 and the FDA’s stance on EPKINLY’s combination therapies. If Rina-S delivers on its promise, Genmab could become a top-tier player in ovarian cancer, a market with limited treatment options. At current valuations, Genmab’s strong fundamentals and diversified revenue streams make it a compelling long-term play in oncology.

In short, Genmab’s Q1 performance is a clear inflection point, backed by data-driven milestones and a pipeline rich with potential. For investors seeking exposure to high-growth biotech, Genmab’s trajectory is hard to ignore.