JPMorgan expects ‘significant’ underperformance of Genmab shares

JPMorgan keeps a Neutral rating on Genmab (GMAB) with a DKK 1,700 price target after the company announced that Johnson & Johnson (JNJ) has decided not to opt-in on Hexabody-CD38 development. Genmab also announced that it will not pursue further clinical development of Hexabody-CD38, the analyst tells investors in a research note. The firm currently includes Hexabody-CD38 in its model at a 50% chance of a $5B peak sales opportunity, worth 10% to its net present value post risk-adjustment. With no potential offset from Hexabody-CD38 royalties, JPMorgan now sees Genmab facing a “significant” 2029 Darzalex-related cliff with an EBITDA compound decline of 6% through 2030. It expects “significant share-price underperformance” on the news. The stock in midday trading is down 9% to $22.05.