Genmab: This Is Anything But A Value Trap, Yet It Is Currently Priced As One

Robert J. Lake
469 Followers
(26min)

Summary

  • Genmab A/S is a high-margin, royalty-driven biotech with a robust pipeline and strong partnerships, notably with J&J, AbbVie, and Pfizer.
  • Darzalex remains the key revenue driver, but patent protection and new indications should sustain growth for at least four more years.
  • The company boasts a rock-solid balance sheet, undervalued metrics (low PE, PEG, high FCF yield), and active share buybacks.
  • Given growth prospects, diversification, and current valuation, I rate GMAB stock a Strong Buy with an excellent risk/reward profile.

Young female scientist working in laboratory

Solskin

Background Info

Genmab A/S (GMAB) is a Danish biotech company that was founded as a European spin-off of the American biotech company Medarex. Its headquarters are in Copenhagen, but it has sites in Utrecht, the Netherlands, Princeton, NJ, and Tokyo, Japan. It specializes in

This article was written by

469 Followers
I have been investing in the stock market since I was 17 years old, and over the 25+ years since I have learned the joy of compounding, the value of dividend reinvesting, and the principle that patient investing through good times and bad brings the greatest rewards. I believe the key to creating wealth is the slow accumulation of high quality assets, and the key to enjoying the process of investing is to mix this steady approach with some high risk/high reward opportunities, underappreciated turnaround plays, and transformative technologies. I invest with integrity, only putting my money into companies and industries that aim to make the world a better place.I would consider myself an amateur investor, entirely self-taught with no formal education in investing or business, but smart at figuring out who is worth listening to. I read widely and embrace the notion that my own growth comes from learning from others. In my other life, I have been teaching at the college/university level for over 20 years. I have a PhD from Brunel University and am an accomplished academic writer and editor.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in GMAB over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About GMAB Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on GMAB

Related Stocks

SymbolLast Price% Chg
GMAB
--