Genmab Shares Surge on Merus Acquisition and Analyst Bullishness

Genmab stock rose nearly 5% after the biotech company announced a $8 billion acquisition of Merus. Analysts at Truist Securities and TD Cowen published bullish updates on the deal, with Truist's Asthika Goonewardene reiterating his buy recommendation and TD Cowen's Yaron Werber raising his price target to $32 per share. The acquisition is expected to close in Q1 2026 and should accelerate Genmab's shift to a wholly owned model, driving sustained growth into the next decade.

Genmab's stock rose nearly 5% following the announcement of its $8 billion acquisition of Merus NV, a Dutch biotechnology company. The deal, which marks a significant expansion of Genmab's oncology portfolio, adds a promising late-stage cancer therapy candidate to its pipeline. The acquisition will be funded through a mix of cash on hand and $5.5 billion in non-convertible debt financing Genmab to acquire Dutch biotech Merus in $8B deal to expand cancer pipeline^[1].

At the core of the deal is Merus' experimental drug petosemtamab, a bispecific antibody targeting EGFRxLGR5, which is currently being tested in two Phase 3 trials for head-and-neck cancer. The US Food and Drug Administration has granted petosemtamab two Breakthrough Therapy Designations, covering both first-line and second-line indications. Data presented earlier this year at the American Society for Clinical Oncology meeting showed encouraging response rates and progression-free survival outcomes compared to the current standard of care Genmab to acquire Dutch biotech Merus in $8B deal to expand cancer pipeline^[1].

Analysts at Truist Securities and TD Cowen published bullish updates on the deal. Asthika Goonewardene from Truist reiterated his buy recommendation, while Yaron Werber from TD Cowen raised his price target to $32 per share. The acquisition is expected to close in Q1 2026 and should accelerate Genmab's shift to a wholly owned model, driving sustained growth into the next decade Genmab Makes A Big Bet With Merus N.V. Acquisition^[2].

Genmab's CEO, Jan van de Winkel, stated that the deal was consistent with the company's long-term strategy. "Petosemtamab has the potential to be a transformational therapy for patients living with head and neck cancer. With our proven track record in development and commercialization, we are confident we can unlock its promise," he said. Merus' chief executive, Bill Lundberg, welcomed the deal, citing the companies' shared focus on innovation in antibody therapeutics Genmab to acquire Dutch biotech Merus in $8B deal to expand cancer pipeline^[1].

Genmab aims to broaden the development of petosemtamab into earlier lines of therapy while leveraging its late-stage expertise and global commercial infrastructure. The company believes the therapy could generate at least $1 billion in annual sales by 2029, with scope for multi-billion-dollar revenues thereafter Genmab to acquire Dutch biotech Merus in $8B deal to expand cancer pipeline^[1].

The acquisition will not impact Genmab's 2025 guidance, but the company expects an increase in R&D and SG&A spending tied to new clinical programs coming from Merus and pre-launch preparations in anticipation of the first potential launch in 2027 Genmab Makes A Big Bet With Merus N.V. Acquisition^[2].