Company Announcement
- First commercial sale of DARZALEX in Japan triggers USD 25 million in milestone payments from
Janssen
- Financial guidance updated
Copenhagen, Denmark; November 14, 2017 – Genmab A/S (Nasdaq
Copenhagen: GEN) announced today that the first commercial sale of DARZALEX (daratumumab) in Japan has taken place, triggering USD
25 million in milestone payments from Janssen Biotech, Inc. (Janssen). The milestone was mentioned
at the time of the September 2017 announcement of the approval of DARZALEX for the treatment of adults with relapsed or refractory
multiple myeloma in Japan. As a result of this milestone, Genmab is updating its 2017 financial guidance.
“We’re pleased that DARZALEX is now commercially available for patients with relapsed or refractory multiple
myeloma who are living in Japan,” said Jan van de Winkel, Ph.D., Chief Executive Officer of Genmab.
OUTLOOK
MDKK |
Revised Guidance |
Previous Guidance |
Revenue |
2,110 – 2,310 |
1,950 – 2,150 |
Operating expenses |
(1,000) – 1,100) |
(1,000) – (1,100) |
Operating income |
1,060 – 1,260 |
900 – 1,100 |
Cash position at end of year* |
>4,900 |
>4,500 |
*Cash, cash equivalents, and marketable
securities |
Genmab is improving its 2017 financial guidance last published on November 8, 2017 due to the inclusion of the
DARZALEX milestones totaling USD 25 million associated with first commercial sale of DARZALEX in Japan.
Operating Result
We expect our 2017 revenue to be in the range of DKK 2,110 – 2,310 million, an increase of DKK 160 million
compared to the previous guidance. We have increased our projected daratumumab milestones to DKK 960 million (previously DKK
800 million) due to inclusion of USD 25 million in milestone payments triggered by the first commercial sale of DARZALEX in
Japan. We expect DARZALEX royalties to remain in the range of DKK 930 – 1,100 million, which are based on an estimated USD
1,100 – 1,300 million of DARZALEX sales in 2017. The remainder of the revenue mainly consists of Arzerra® royalties, DuoBody®
milestones, and non-cash amortization of deferred revenue.
We anticipate that our 2017 operating expenses will remain in the range of DKK 1,000 –1,100 million.
As a result of the increased revenue, we now expect the operating income for 2017 to be approximately DKK 1,060
– 1,260 million, compared to DKK 900 – 1,100 million in the previous guidance.
Cash Position
As a result of the above and proceeds from the exercise of warrants during the year, we are now projecting a cash
position at the end of 2017 of greater than DKK 4,900 million.
Outlook: Risks and Assumptions
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;
DARZALEX and Arzerra 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 2017 that could materially affect the results.
About DARZALEX® (daratumumab)
DARZALEX® (daratumumab) injection for intravenous infusion is indicated in the United States in combination with
lenalidomide and dexamethasone, or bortezomib and dexamethasone, for the treatment of patients with multiple myeloma who have
received at least one prior therapy; in combination with pomalidomide and dexamethasone for the treatment of patients with multiple
myeloma who have received at least two prior therapies, including lenalidomide and a proteasome inhibitor (PI); and as a
monotherapy for the treatment of patients with multiple myeloma who have received at least three prior lines of therapy, including
a PI and an immunomodulatory agent, or who are double-refractory to a PI and an immunomodulatory agent.1 DARZALEX is the
first monoclonal antibody (mAb) to receive U.S. Food and Drug Administration (FDA) approval to treat multiple myeloma. DARZALEX is
indicated in Europe for use in combination with lenalidomide and dexamethasone, or bortezomib and dexamethasone, for the treatment
of adult patients with multiple myeloma who have received at least one prior therapy and as monotherapy for the treatment of adult
patients with relapsed and refractory multiple myeloma, whose prior therapy included a PI and an immunomodulatory agent and who
have demonstrated disease progression on the last therapy. In Japan, DARZALEX is approved in combination with lenalidomide
and dexamethasone, or bortezomib and dexamethasone, for treatment of adults with relapsed or refractory multiple myeloma. DARZALEX
is the first human CD38 monoclonal antibody to reach the market. For more information, visit www.DARZALEX.com.
Daratumumab is a human IgG1k monoclonal antibody (mAb) that binds with high affinity to the CD38 molecule,
which is highly expressed on the surface of multiple myeloma cells. Daratumumab triggers a person’s own immune system to
attack the cancer cells, resulting in rapid tumor cell death through multiple immune-mediated mechanisms of action and through
immunomodulatory effects, in addition to direct tumor cell death, via apoptosis (programmed cell death).1,2,3,4,5
Daratumumab is being developed by Janssen Biotech, Inc. under an exclusive worldwide license to develop,
manufacture and commercialize daratumumab from Genmab. A comprehensive clinical development program, including multiple Phase
III studies, is ongoing with daratumumab in relapsed and frontline multiple myeloma settings, and additional studies are ongoing or
planned to assess its potential in other malignant and pre-malignant diseases on which CD38 is expressed, such as smoldering
myeloma, NKT-cell lymphoma, amyloidosis, myelodysplastic syndromes and solid tumors. Daratumumab has received two
Breakthrough Therapy Designations from the U.S. FDA, for multiple myeloma, as both a monotherapy and in combination with other
therapies.
About Genmab
Genmab is a publicly traded, international biotechnology company specializing in the creation and development of
differentiated antibody therapeutics for the treatment of cancer. Founded in 1999, the company has two approved antibodies,
DARZALEX® (daratumumab) for the treatment of certain multiple myeloma indications, and Arzerra® (ofatumumab)
for the treatment of certain chronic lymphocytic leukemia indications. Daratumumab is in clinical development for additional
multiple myeloma indications, other blood cancers, and solid tumors. A subcutaneous formulation of ofatumumab is in
development for relapsing multiple sclerosis. Genmab also has a broad clinical and pre-clinical product pipeline.
Genmab's technology base consists of validated and proprietary next generation antibody technologies - the
DuoBody® platform for generation of bispecific antibodies, and the HexaBody® platform which creates effector
function enhanced antibodies. The company intends to leverage these technologies to create opportunities for full or
co-ownership of future products. Genmab has alliances with top tier pharmaceutical and biotechnology companies. For more
information visit www.genmab.com.
Contact:
Rachel Curtis Gravesen, Senior Vice President, Investor Relations & Communications
T: +45 33 44 77 20; M: +45 25 12 62 60; E: rcg@genmab.com
This Company Announcement contains forward looking statements. The words “believe”, “expect”, “anticipate”,
“intend” and “plan” and similar expressions identify forward looking statements. Actual results or performance may differ
materially from any future results or performance expressed or implied by such statements. The important factors that could cause
our actual results or performance to differ materially include, among others, risks associated with pre-clinical and clinical
development of products, uncertainties related to the outcome and conduct of clinical trials including unforeseen safety issues,
uncertainties related to product manufacturing, the lack of market acceptance of our products, our inability to manage growth, the
competitive environment in relation to our business area and markets, our inability to attract and retain suitably qualified
personnel, the unenforceability or lack of protection of our patents and proprietary rights, our relationships with affiliated
entities, changes and developments in technology which may render our products obsolete, and other factors. For a further
discussion of these risks, please refer to the risk management sections in Genmab’s most recent financial reports, which are
available on www.genmab.com. Genmab does not undertake
any obligation to update or revise forward looking statements in this Company Announcement nor to confirm such statements in
relation to actual results, unless required by law.
Genmab A/S and its subsidiaries own the following trademarks: Genmab®; the Y-shaped Genmab
logo®; Genmab in combination with the Y-shaped Genmab logo™; the DuoBody logo®; the HexaBody logo™;
HuMax®; HuMax-CD20®; DuoBody®; HexaBody® and UniBody®. Arzerra®
is a trademark of Novartis AG or its affiliates. DARZALEX® is a trademark of Janssen Biotech, Inc.
1 DARZALEX Prescribing information, June 2017.
Available at: https://www.accessdata.fda.gov/drugsatfda_docs/label/2016/761036s004lbl.pdf Last accessed June 2017
2 De Weers, M et al. Daratumumab, a Novel Therapeutic
Human CD38 Monoclonal Antibody, Induces Killing of Multiple Myeloma and Other Hematological Tumors. The Journal of Immunology.
2011; 186: 1840-1848.
3 Overdijk, MB, et al. Antibody-mediated phagocytosis contributes to the
anti-tumor activity of the therapeutic antibody daratumumab in lymphoma and multiple myeloma. MAbs. 2015; 7: 311-21.
4 Krejcik, MD et al. Daratumumab Depletes CD38+ Immune-regulatory Cells,
Promotes T-cell Expansion, and Skews T-cell Repertoire in Multiple Myeloma. Blood. 2016; 128: 384-94.
5 Jansen, JH et al. Daratumumab, a human CD38 antibody induces apoptosis
of myeloma tumor cells via Fc receptor-mediated crosslinking. Blood. 2012; 120(21):abstract 2974.
Company Announcement no. 40
CVR no. 2102 3884
LEI Code 529900MTJPDPE4MHJ122
Genmab A/S
Kalvebod Brygge 43
1560 Copenhagen V
Denmark
Attachments:
http://www.globenewswire.com/NewsRoom/AttachmentNg/762c17bd-45ab-4bb9-a36c-b464c6416765
