TD Cowen raises Genmab's TP, calls $8 bln acquisition 'good strategic' deal

Genmab A/S

30/09/2025 08:33

** TD Cowen raises Genmab GMAB.CO target price to DKK 2,015 from DKK 1,477 as it considers the group's acquisition of Merus 2GH.F a "good strategic" deal that complements its existing antibody/oncology expertise

     ** In a statement on Monday, Genmab said the $8 billion deal gives the company worldwide rights to Merus late-stage asset petosemtamab, a drug for head and neck cancer, with a potential launch seen in 2027

     ** The brokerage believes the drug "should readily achieve >$2B sales" from its primary cancer indication and its potential in colorectal cancer

     ** While the deal is expected to dilute earnings in the medium term, the broker sees Genmab deleveraging through its own cash flow to hit its debt targets by fiscal 2028

** This acquisition comes as Genmab enters a "catalyst-rich period", with several key drug trial readouts and approvals anticipated over the next two years, TD Cowen points out

** Genmab shares rise 4.5% in morning trade on Tuesday to nearly top of pan-European STOXX 600 .STOXX index

 (Reporting by Agnieszka Olenska)

 ((Agnieszka.Olenska@thomsonreuters.com;))