Genmab's Guggenheim Upgrade: Reassessing Long-Term Growth Amid Darzalex Optimism

In a bold move on September 23, 2025, Guggenheim analyst Michael Schmidt upgraded Genmab A/S (NASDAQ: GMAB) from “neutral” to “buy,” setting a $43.00 price target—a 50.35% upside from its current valuationGuggenheim Upgrades Genmab (GMAB) to Buy, Sets Price Target^[1]. This decision reflects a broader shift in sentiment toward the biotech firm, driven by recent clinical advancements, robust financial performance, and a diversified pipeline that mitigates overreliance on its flagship asset, DARZALEX. While some investors have raised concerns about potential saturation in the multiple myeloma market, Genmab's strategic pivot toward pipeline expansion and innovative therapies positions it as a compelling long-term play.

Darzalex: A Pillar, Not a Crutch

Genmab's royalty stream from Johnson & Johnson's DARZALEX remains a cornerstone of its revenue. In Q1 2025, global net sales of DARZALEX totaled $3.237 billion, with $1.829 billion in the U.S. and $1.409 billion internationallyGenmab Announces Net Sales of DARZALEX® (daratumumab) for Q1 2025^[2]. These figures underscore the drug's enduring commercial strength, particularly as J&J continues to explore earlier-line therapies. For instance, the MajesTEC-5 Phase 2 trial demonstrated that a combination of TECVAYLI and DARZALEX FASPRO achieved 100% partial response rates and 85.7% complete responses in transplant-eligible newly diagnosed multiple myeloma patientsTECVAYLI® and DARZALEX FASPRO®-based induction treatment demonstrates promising rates and depths of response in transplant-eligible patients with newly diagnosed multiple myeloma^[3]. Such data not only reinforces DARZALEX's role in the treatment paradigm but also expands its addressable market, countering fears of near-term saturation.

However, Genmab's long-term growth hinges on its ability to diversify beyond DARZALEX. The company's bispecific antibody epcoritamab (EPKINLY) is a prime example. A supplemental Biologics License Application (sBLA) for its use in relapsed or refractory follicular lymphoma is under review by the FDAGenmab Announces Financial Results for the First Half of 2025^[4]. Meanwhile, Rina-S, an antibody-drug conjugate targeting FRα-expressing tumors, has shown promising antitumor activity in endometrial cancer, with Phase 3 trials on the horizonGenmab Q1 2025 slides: 19% revenue growth, 62 surge in operating profit^[5]. These developments illustrate Genmab's commitment to leveraging its proprietary antibody platforms to enter high-growth oncology segments.

Financial Fortitude and Strategic Resilience

Genmab's Q1 2025 financials further validate its investment thesis. Total revenue grew 19% year-over-year, with recurring revenue surging 33%—a testament to the company's royalty streams and commercial product salesGenmab Announces Net Sales of DARZALEX® (daratumumab) for Q1 2025^[6]. Operating profit skyrocketed 62% to $188 million, driven by disciplined cost management and strong performance from EPKINLY ($90 million in net sales, up 73%) and TIVDAK ($33 million, up 22%)Genmab Q1 2025 slides: 19% revenue growth, 62 surge in operating profit^[7]. With $3.2 billion in cash reserves and a 2025 revenue growth outlook of 12%, Genmab is well-positioned to fund its pipeline while maintaining financial flexibilityGenmab Announces Financial Results for the First Half of 2025^[8].

Critics may argue that biotech stocks face headwinds from regulatory uncertainty and patent expirations. Yet Genmab's strategic focus on late-stage assets—such as Acasunlimab for non-small cell lung cancer (with a $1 billion market potential and 2027 data readout)—provides a buffer against industry-wide risksGenmab Q1 2025 slides: 19% revenue growth, 62 surge in operating profit^[9]. Moreover, favorable macroeconomic trends, including potential interest rate cuts and clearer drug pricing policies, could further bolster the sectorBiopharma Industry Outlook 2025: Trends Signaling^[10].

Conclusion: A Buy Rating with Conviction

Guggenheim's upgrade to “buy” is not merely a reaction to short-term momentum but a recognition of Genmab's structural strengths. While DARZALEX remains a revenue driver, the company's pipeline diversification, financial discipline, and clinical progress in high-impact indications like lymphoma and lung cancer address overblown concerns about dependency. As Michael Schmidt and other analysts have noted, Genmab's ability to innovate across its antibody platforms—while capitalizing on favorable industry dynamics—makes it a standout candidate for long-term growth. Investors who dismiss the stock due to myeloma market saturation may overlook the broader narrative of a company poised to redefine its oncology footprint.