Genmab's 2025 Gains Driven by Darzalex Royalties, Merus Acquisition
Event summary
- Genmab’s 2025 revenue reached $3.72 billion, a 19% increase driven by royalties and product sales.
- The acquisition of Merus N.V. added petosemtamab, a late-stage therapy asset, to Genmab’s pipeline.
- DARZALEX royalties accounted for approximately $2.7 billion of Genmab’s 2025 revenue.
- EPKINLY/TEPKINLY net sales grew to $468 million in 2025, up 67% year-over-year.
- Genmab anticipates 2026 revenue between $4.1 and $4.4 billion, with operating expenses expected to rise to $2.7–$2.9 billion.
The big picture
Genmab's strong performance in 2025 highlights the benefits of its royalty-based business model, but also underscores the need to balance this with internal product development and acquisitions. The Merus acquisition, valued at approximately $700 million, signals a strategic shift towards greater ownership of pipeline assets and reduces reliance on partnerships. The company's growth trajectory will be closely tied to the continued success of J&J’s DARZALEX franchise and the successful advancement of its own late-stage programs.
What we're watching
- Royalty Dependence
- Genmab's substantial reliance on DARZALEX royalties creates vulnerability to changes in J&J’s sales performance and potential royalty rate adjustments, necessitating diversification of revenue streams.
- Integration Risk
- The successful integration of Merus N.V. and its petosemtamab asset will be critical to realizing the anticipated transformational opportunity, requiring careful management of resources and potential synergies.
- Execution Risk
- Genmab’s ambitious 2026 revenue guidance hinges on continued strong performance of existing products and successful execution of late-stage development programs, exposing the company to potential setbacks.
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