How Genmab’s US$2.5 Billion Debt-Funded Merus Deal and Lymphoma Data Will Impact Genmab (CPSE:GMAB) Investors

• Earlier this month, Genmab A/S completed a US$1.50 billion offering of 6.250% senior secured notes due 2032 and US$1.00 billion of 7.250% senior unsecured notes due 2033 to help finance its pending acquisition of Merus N.V., alongside new term loans and a revolving credit facility.
• The combination of large-scale debt financing and strong epcoritamab and EPKINLY clinical data across several lymphoma studies highlights how Genmab is using both capital structure and science to expand its oncology footprint.
• We’ll now examine how the epcoritamab and EPKINLY lymphoma data could reshape Genmab’s pipeline-driven investment narrative and growth profile.

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Genmab Investment Narrative Recap

To own Genmab, you need to believe its antibody platform and epcoritamab / EPKINLY franchise can offset partner dependence and rising competition, while the Merus deal adds complementary oncology assets without overburdening the balance sheet. The US$2.5 billion notes and new credit facilities materially increase financial leverage, so the near term focus shifts to closing and integrating Merus and maintaining pipeline execution, with financing costs and regulatory or clinical setbacks remaining key risks.

Among recent announcements, the new Phase 3 EPCORE FL 1 data for EPKINLY plus rituximab and lenalidomide in relapsed or refractory follicular lymphoma stand out, given the reported 79% reduction in risk of progression or death and high complete response rates. These results, alongside broader epcoritamab data across B cell malignancies, tighten the link between Genmab’s expanded debt load and its need to keep converting late stage oncology assets into durable revenue drivers.

Yet, even if the science keeps delivering, investors should be aware that growing competition from other CD20 bispecifics and emerging immunotherapies could...

Read the full narrative on Genmab (it's free!)

Genmab's narrative projects $5.1 billion revenue and $1.8 billion earnings by 2028. This requires 11.8% yearly revenue growth and about a $0.4 billion earnings increase from $1.4 billion today.

Uncover how Genmab's forecasts yield a DKK2055 fair value, a 3% upside to its current price.

Exploring Other Perspectives

Sixteen fair value estimates from the Simply Wall St Community span roughly DKK1,015 to over DKK5,500, showing how far apart individual views can be. You are weighing these against Genmab’s heavy new debt funding for the Merus acquisition and the execution risk that comes with scaling an oncology pipeline that still depends on successful trial outcomes and regulatory decisions.

Explore 16 other fair value estimates on Genmab - why the stock might be worth 49% less than the current price!

Build Your Own Genmab Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Genmab research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free Genmab research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Genmab's overall financial health at a glance.

No Opportunity In Genmab?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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