Biotech major Genmab (NASDAQ:GMAB) is acquiring privately-owned ProfoundBio in an all-cash deal worth $1.8 billion.
Genmab is focused on developing antibody therapeutics for cancer. The acquisition of clinical-stage ProfoundBio is expected to help GMAB strengthen its portfolio, with the addition of worldwide rights for three clinical candidates.
Pipeline Boost
Genmab’s acquisition of ProfoundBio is poised to significantly enhance Genmab’s pipeline, particularly in the field of cancer therapeutics. By acquiring ProfoundBio, Genmab gains access to a promising pipeline tailored for the treatment of cancers like ovarian cancer and various solid tumors. The addition of ProfoundBio’s Rina-S candidate, currently in a Phase 1/2 clinical trial, holds significant potential for Genmab’s expansion into gynecologic oncology and solid tumors.
Furthermore, the synergy between Genmab’s proprietary antibody platforms and ProfoundBio’s technology platforms creates a fertile ground for the development of innovative cancer treatments. The Fast Track designation granted to Rina-S by the FDA for endometrioid platinum-resistant ovarian cancer also highlights the potential impact of this acquisition in rapidly advancing novel therapies. This strategic move not only strengthens Genmab’s position in the oncology space but also paves the way for the development of new and effective treatments for various forms of cancer.
Acquisition Approval and Revenue Outlook
The acquisition has been approved by the boards of both companies and is anticipated to close in H1 2024.
Separately, Genmab reaffirmed its revenue expectations of DKK 18.7-20.5 billion. However, the Danish company now expects its operating expenses to tick higher owing to an increase in R&D expenses.
What Is the Price Target for Genmab?
Genmab’s share price has declined by nearly 20.2% over the past year. Overall, the Street has a Moderate Buy consensus rating on the stock alongside an average GMAB price target of $39.58.
Read full Disclosure
