AlphaValue/Baader Europe Reduces EPS Estimates for Genmab on Merger Financing Costs

12:02 AM EDT, 06/24/2026 (MT Newswires) -- AlphaValue/Baader Europe cut its EPS estimates for Genmab (GMAB.CO), expecting higher net financial expenses from the Merus deal to "significantly" impact the Danish biotechnology company's bottom line. "The firm raised $5.5bn to fund the Merus acquisition, which is expected to be accretive to EBITDA, with projected annual sales of at least $1bn by 2029 and a substantial contribution thereafter. This has led to increased interest expenses. Additionally, the firm utilised its entire $1.6bn in marketable securities to finance the acquisition, resulting in a loss of interest and investment income. Consequently, our projections for net financial income of $99.6m in 2026 and $95.6m in 2027 have been revised to net financial expenses of $350m and $325m, respectively," analysts said Tuesday. The EPS forecasts were therefore reduced by 27.2% to $14 for 2026 and 17% to $18.2 for 2027. "Despite significant revisions in estimates, as detailed in the EPS section, Genmab's long-term prospects remain robust," the research firm noted, citing upcoming data readouts and product launches. The stock is rated buy, with a price target of 2,693 Danish kroner.