Genmab Updates Financial Guidance for 2016
Company Announcement
• Genmab improves financial guidance for 2016
• Improvement driven by DARZALEX® sales
• Rapid uptake of the product since launch
Copenhagen, Denmark; April 20, 2016 — Genmab A/S (Nasdaq Copenhagen: GEN) announced today that it is improving its financial guidance published on February 17, 2016. The improvement is driven by the anticipation of increased royalty income related to the sales of DARZALEX by Genmab's collaboration partner Janssen Biotech, Inc. and the rapid uptake of the product since launch.
"We are pleased to improve our 2016 financial guidance based on the robust level of DARZALEX sales that we have seen since the product's launch in November 2015," said Jan van de Winkel, Ph.D., Chief Executive Officer of Genmab.
Outlook 2016
MDKK Revised Guidance Original Guidance
Revenue 925 — 975 825 — 875
Operating expenses (775) — (825) (775) — (825)
Operating income 125 — 175 25 — 75
Cash position at end of year* 3,400 — 3,500 3,300 — 3,400
*Cash, cash equivalents, and marketable securities
We expect our 2016 revenue to be in the range of DKK 925 — 975 million, an increase of DKK 100 million compared to the previous guidance. Our projected revenue for 2016 consists primarily of daratumumab milestones of DKK 400 million and DARZALEX royalties of DKK 300 — 350 million (previously DKK 200 — 250 million) that are based on an estimated USD 400 — 450 million of DARZALEX sales in 2016 (previously USD 250 — 300 million). The remainder of the revenue mainly consists of Arzerra® royalties, DuoBody® milestones, and non-cash amortization of deferred revenue.
We anticipate that our 2016 operating expenses will remain in the range of DKK 775 — 825 million. The increased expense level from previous years is driven by the additional investment in our pipeline of products, including the advancement of tisotumab vedotin as well as HuMax®-AXL-ADC, HexaBody®-DR5/DR5, DuoBody-CD3xCD20, and our other pre-clinical programs.
We expect the operating income for 2016 to be approximately DKK 125 - 175 million, an improvement of DKK 100 million, compared to the previous guidance of DKK 25 - 75 million.
We are projecting a cash position at the end of 2016 of DKK 3,400 — 3,500 million, an improvement of DKK 100 million, compared to the previous guidance of DKK 3,300 — 3,400 million.
In addition to factors already mentioned, the estimates above are subject to change due to numerous reasons, including but not limited to the achievement of certain milestones associated with our collaboration agreements; the timing and variation of development activities (including activities carried out by our collaboration partners) and related income and costs; Arzerra and DARZALEX sales and corresponding royalties to Genmab; fluctuations in the value of our marketable securities; and currency exchange rates. The financial guidance does not include any potential proceeds from future warrant exercises and also assumes that no significant agreements are entered into during 2016 that could materially affect the results.