COPENHAGEN, Denmark, Nov. 7, 2012 (GLOBE NEWSWIRE) --
Interim Report for the 9 Months Ended September 30, 2012
- Entered global license and development agreement for daratumumab with Janssen Biotech, USD 55 million (DKK 327 million) upfront payment and agreement to purchase 5.4 million shares at a price of DKK 88 per share
- Revenue increased by 25%, operating loss reduced by 41%, cash position strengthened
- Signed DuoBody® collaboration with Janssen Biotech
- Arzerra® first nine months net sales increased 43% over prior year. Guidance for Arzerra royalties for 2012 increased
"During the last nine months we have delivered on a great number of our objectives and made very significant progress towards becoming a sustainable company. The daratumumab collaboration with Janssen Biotech and the two recent DuoBody deals with Novartis and Janssen Biotech have not only increased our financial security, but also serve to build our future pipeline," said Jan van de Winkel, Ph.D., Chief Executive Officer of Genmab.
Financial Performance First Nine Months
- Genmab's revenues were DKK 322 million for the first nine months of 2012 compared to DKK 258 million for the corresponding period in 2011. The increase of DKK 64 million or 25% was mainly driven by higher Arzerra royalties in addition to revenue related to our daratumumab collaboration with Janssen Biotech (Janssen) and the achievement of a milestone under our collaboration with GlaxoSmithKline (GSK).
- Operating expenses decreased 3% from DKK 443 million in the first nine months of 2011 to DKK 430 million in the first nine months of 2012.
- An operating loss of DKK 109 million in the first nine months of 2012 compared to DKK 185 million in the corresponding period for 2011, an improvement of 41%. The improved operating result was driven by increased revenues and continued strong focus on cost control.
- On September 30, 2012, Genmab had a cash position of DKK 1,194 million. This represents a net increase of DKK 89 million from the beginning of 2012 which is primarily related to the upfront payment received from Janssen and is partially offset by the ongoing investment in our research and development activities.
Business Progress Third Quarter to Present
- July: Genmab entered into a collaboration with Janssen to create and develop bispecific antibodies for up to 10 programs using its DuoBody technology platform. Genmab received an upfront payment of USD 3.5 million. Genmab will potentially be entitled to milestone and license payments of up to approximately USD 175 million per program, if all milestones are met, plus research funding and royalties.
- August: Genmab announced a global license and development agreement for daratumumab with Janssen. The agreement became effective after receiving antitrust clearance under the US Hart-Scott-Rodino act in September at which time Genmab received an upfront payment of USD 55 million (DKK 327 million at the date of the agreement). As part of the daratumumab agreement, Johnson & Johnson Development Corporation (JJDC) agreed to invest DKK 475 million to subscribe for 5.4 million new shares of Genmab at a price of DKK 88 per share which was approximately 30% above Genmab's closing share price the day before the agreement was announced. These shares were issued in October following a formal approval of a private placement prospectus. Genmab has received a total of DKK 800 million in cash under the agreement so far and could also be entitled to up to USD 1 billion in development, regulatory and sales milestones, in addition to tiered double digit royalties.
- August: Genmab announced improved financial guidance taking into account the impact of the agreement for daratumumab.
- October: GSK reported net sales for Arzerra for the third quarter of 2012 of GBP 18.2 million, an increase of 53% over Q3 2011, resulting in royalty income of DKK 34 million to Genmab. A large portion of Rest of the World sales in the third quarter of 2012 are related to the supply of ofatumumab for clinical trials run by other companies, and as such does not reflect ongoing commercial demand.
Genmab is improving its 2012 financial guidance due to higher Arzerra royalty income which is now expected to be in the range of DKK 105 - 115 million, an increase of DKK 15 million compared to the previous guidance of DKK 90 - 100 million.
Genmab will hold a conference call in English to discuss the results for the first nine months of 2012 today, Wednesday, November 7, at 6.00 pm CET, 5.00 pm GMT or noon EST. The dial in numbers are:
+1 718 354 1226 (US participants) and ask for the Genmab conference call
+44 207 509 5139 (international participants) and ask for the Genmab conference call
A live and archived webcast of the call and relevant slides will be available at www.genmab.com.
To read the full PDF version of the Interim Report for the 9 Months Ended September 30, 2012, visit Genmab's website at http://ir.genmab.com/annuals.cfm.
About Genmab A/S
Genmab is a publicly traded, international biotechnology company specializing in the creation and development of differentiated human antibody therapeutics for the treatment of cancer. Founded in 1999, the company's first marketed antibody, ofatumumab (Arzerra(r)), was approved to treat chronic lymphocytic leukemia in patients who are refractory to fludarabine and alemtuzumab after less than eight years in development. Genmab's validated and next generation antibody technologies are expected to provide a steady stream of future product candidates. Partnering of innovative product candidates and technologies is a key focus of Genmab's strategy and the company has alliances with top tier pharmaceutical and biotechnology companies. For more information visit www.genmab.com.
Rachel Curtis Gravesen, Senior Vice President, Investor Relations & Communications
T: +45 33 44 77 20; M: +45 25 12 62 60; E: firstname.lastname@example.org
This Company Announcement contains forward looking statements. The words "believe", "expect", "anticipate", "intend" and "plan" and similar expressions identify forward looking statements. Actual results or performance may differ materially from any future results or performance expressed or implied by such statements. The important factors that could cause our actual results or performance to differ materially include, among others, risks associated with pre-clinical and clinical development of products, uncertainties related to the outcome and conduct of clinical trials including unforeseen safety issues, uncertainties related to product manufacturing, the lack of market acceptance of our products, our inability to manage growth, the competitive environment in relation to our business area and markets, our inability to attract and retain suitably qualified personnel, the unenforceability or lack of protection of our patents and proprietary rights, our relationships with affiliated entities, changes and developments in technology which may render our products obsolete, and other factors. For a further discussion of these risks, please refer to the risk management sections in Genmab's most recent financial reports, which are available on www.genmab.com. Genmab does not undertake any obligation to update or revise forward looking statements in this Company Announcement nor to confirm such statements in relation to actual results, unless required by law.
Genmab®; the Y-shaped Genmab logo®; HuMax®; HuMax-CD20®; DuoBody® and UniBody® are all trademarks of Genmab A/S. Arzerra® is a trademark of GlaxoSmithKline.
Company Announcement no. 29
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