Expectations for J&J Genmab opt-in lowered ahead of news, says Morgan Stanley

Morgan Stanley says intra-day pressure on Genmab (GMAB) of greater than 5% after Genmab announced that partner Johnson & Johnson (JNJ) has decided to not exercise its opt-in decision for worldwide rights to develop HexaBody-CD38 has been “more modest” than the potential downside the firm had anticipated of 10%-20%, which it sees suggesting that investor expectations for an opt-in had “likely gradually come down further in recent weeks.” The firm has an Equal Weight rating and $31 price target on Genmab shares, which are down $1.86, or 8%, to $22.28 near 12:30 pm ET.