Shaken, Not Stirred

Did you know the antibody behind Johnson & Johnson’s (JNJ) blockbuster cancer drug Darzalex was actually developed by a small Danish biotech most investors have never heard of?

That biotech is Genmab (GMAB), and they’re like the secret agent of the biotech world — operating in the shadows while their technology powers some of the biggest cancer breakthroughs on the market.

And while everyone’s busy preaching the gospel of the likes of Tesla (TSLA) in 2019, this Scandinavian operator was on its way to making chemotherapy look like bloodletting with leeches.

Genmab’s story is fascinating to watch. They started by licensing their antibody technologies to pharmaceutical giants, but now they’re commercializing their own drugs while still collecting those sweet, sweet royalty checks.

Their proprietary platforms – DuoBody, HexaBody, and UniBody – sound like superhero teams, and in the oncology world, they kind of are.

These technologies create sophisticated antibodies that target cancer cells with surgical precision. The numbers tell the story: Genmab is projected to generate a whopping $4.2 billion in revenues by 2026.

When we examine what’s actually driving this valuation, we find several compelling factors working together.

Current commercial products like Tivdak for cervical cancer and Epkinly/Tepkinly for B-cell lymphomas are already approved and generating revenue.

Meanwhile, the company still collects substantial royalties from blockbusters like Darzalex (multiple myeloma) and Kesimpta (multiple sclerosis) that were developed using their technology.

This dual-stream approach provides both stability and growth potential that’s rare in the biotech world.

Looking deeper into their pipeline reveals even more potential value. Their late-stage candidates target markets worth billions: Epcoritamab label expansions aim at a roughly $3 billion market, Rina-S for ovarian cancer could tap into a $2 billion opportunity, and Acsunilimab for non-small cell lung cancer addresses a market worth approximately $1 billion.

With $3.2 billion in cash and virtually no debt, Genmab has the financial firepower to advance this pipeline without diluting shareholders into oblivion – a refreshing change from many biotechs that treat their stock like an ATM.

Here’s where it gets interesting. Despite generating $1.1 billion in positive cash flow over the trailing twelve months, Genmab’s stock is down about 59% from its 2023 highs.

The market seems to be undervaluing its potential. The forward P/S ratio sits at 2.9 — below the sector average of 3.1 — even though Genmab’s growth profile runs circles around peers like Seagen (SGEN), MorphoSys (MOR), and BeiGene (BGNE). It’s as if the market brought binoculars to a biotech safari… and then forgot to look through them.

So what’s on deck for the rest of 2025? Quite a lot. – it’s packed with potential catalysts that could serve as powerful reminders to the market of what it’s been overlooking.

Recent approvals in Japan and the EU for Tivdak and Epcoritamab are opening new markets. Meanwhile, upcoming Phase 2 data for Acsunilimab and Rina-S could spark renewed investor interest — and price momentum.

This isn’t just another calendar year. It’s a potential inflection point.

Of course, as with everything else, we can never discount the risks. Clinical trials are always a roll of the dice. And as a foreign issue headquartered in Denmark, there’s additional complexity for US investors to consider.

But even accounting for all these potential issues, Genmab still appears undervalued based on its current revenue streams alone – the pipeline is essentially getting priced in for free, like those extra fries that sometimes fall into your takeout bag.

For those willing to look beyond the latest headlines, Genmab offers something far more elemental: the molecular precision of modern oncology paired with the financial discipline of a royalty-rich balance sheet.

Sure, it’s not loud. It’s also not flashy. But it’s ruthlessly effective.

And if biotech had a James Bond, it’d be Genmab: sleek, clinical, and quietly dismantling cancer with a license to bill.

Or maybe it’s Agent Q — after all, someone has to invent the tech behind the mission. Either way, the mission is getting accomplished.