Genmab first-half revenues rise 16%, but operating profit falls 21%

Danish biotech firm Genmab (OMX: GEN) has released its financial results for the first half of 2018, showing that revenues for the period were up 16% at 1.19 billion Danish kroner ($184.9 million), but operating income at 459 million kroner was down 21%, driven by increased operating expenses, which was partly offset by higher revenue.

The company’s shares dipped 1.8% to 1,060.50 kroner by close of trading yesterday and dropped a further 3.5% to 1,023.50 kroner this morning.

The revenue increase was mainly driven by the payment from Novartis of $50 million, under a collaboration on Arzerra (ofatumumab), and higher Darzalex (daratumumab) royalties, partly offset by a decrease in Darzalex milestones. Darzalex’ net sales were $943 million, resulting in royalty income of 695 million kroner. Johnson & Johnson (NYSE: JNJ) subsidiary Janssen has an exclusive worldwide license to develop, manufacture and commercialize the drug.