On November 8, 2017 Genmab reported Financial Results for the First Nine Months of 2017 (Press release, Genmab, NOV 8, 2017, View Source [SID1234521793]).
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Interim Report for the First Nine Months Ended September 30, 2017
Highlights
USD 871 million in net sales of DARZALEX (daratumumab); resulting in royalty income of DKK 707 million
DARZALEX approved for relapsed or refractory multiple myeloma in Japan
Announced positive topline results in Phase III ALCYONE study of daratumumab in front line multiple myeloma
Seattle Genetics exercised its option to co-develop tisotumab vedotin with Genmab
"This past quarter we continued to focus on progressing our innovative antibody pipeline. DARZALEX received its first approval in Japan, for the treatment of relapsed or refractory multiple myeloma. We also reported exciting data from the Phase III ALCYONE study of daratumumab in front line multiple myeloma. Finally, we were pleased to announce that Seattle Genetics exercised its option to co-develop tisotumab vedotin and we very much look forward to our collaboration to rapidly bring this product into the next stages of clinical evaluation," said Jan van de Winkel, Ph.D., Chief Executive Officer of Genmab.
Financial Performance First Nine Months of 2017
Revenue was DKK 1,348 million in the first nine months of 2017 compared to DKK 889 million in the first nine months of 2016. The increase of DKK 459 million, or 52%, was mainly driven by higher DARZALEX royalties and milestones.
Operating expenses were DKK 707 million in the first nine months of 2017 compared to DKK 544 million in the first nine months of 2016. The increase of DKK 163 million, or 30%, was due to the additional investment in our pipeline of products, including the advancement of tisotumab vedotin, HexaBody-DR5/DR5, DuoBody-CD3xCD20, and other products in our pipeline.
Operating income was DKK 641 million in the first nine months of 2017 compared to DKK 345 million in the first nine months of 2016. The increase of DKK 296 million, or 86%, was driven by higher revenue, which was partly offset by increased operating expenses in 2017.
On September 30, 2017, Genmab had a cash position of DKK 5,184 million compared to DKK 3,922 million at December 31, 2016. This represented a net increase of DKK 1,262 million, which was mainly driven by positive working capital adjustments of DKK 575 million related to milestones achieved in the fourth quarter of 2016 that were received in 2017, our operating income of DKK 641 million, and proceeds from the exercise of warrants of DKK 208 million.
Outlook
Genmab is maintaining its 2017 financial guidance published on February 22, 2017 and reiterated on September 27, 2017.
Conference Call
Genmab will hold a conference call in English to discuss the results for the first nine months of 2017 today, Wednesday, November 8, at 6.00 pm CET, 5.00 pm GMT or 12.00 pm EDT. The dial in numbers are:
+1 646 254 3360 (US participants) and ask for the Genmab conference call
+44 20 3427 1910 (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.