Genmab ADS slides as Bernstein downgrade spotlights looming Darzalex patent cliff
Genmab A/S ADS (GMAB) is down about 3% as investors digest a fresh Bernstein downgrade to Underperform with a sharply lower price target of DKK 1,000 (from DKK 1,580). The note flags that the stock price still isn’t fully reflecting an expected DARZALEX loss-of-exclusivity and higher investment spending, pressuring longer-term earnings expectations.
1. What’s moving the stock
Genmab’s U.S.-listed ADS is sliding in the latest session after Bernstein cut its rating to Underperform from Market Perform and slashed its price target to DKK 1,000 from DKK 1,580. The call centers on concerns that the share price still does not fully discount the coming DARZALEX loss-of-exclusivity, alongside softer sales and higher investment needs that can weigh on earnings power over the next several years. (tipranks.com)
2. Why the downgrade matters
DARZALEX-related economics remain a core driver of Genmab’s cash generation through royalties and collaboration income, making any reassessment of the durability of that stream a direct input into valuation. In its 2025 annual report release, Genmab highlighted strong 2025 DARZALEX net sales growth and associated royalty revenue strength—exactly the cash flow stream that investors are debating as the company approaches the next phase of lifecycle risk. (ir.genmab.com)
3. What to watch next
With the stock reacting to the reset in longer-dated expectations, the near-term focus shifts to whether Genmab can convince investors its pipeline progression and portfolio expansion are sufficient to bridge a post-DARZALEX growth and profitability gap. Updates tied to commercial execution (including EPKINLY growth) and clinical/regulatory milestones for late-stage programs will likely be the next catalysts that determine whether today’s selloff stabilizes or extends. (ir.genmab.com)