Genmab: Q1 EBIT in line. Now waiting for POLLUX and a continuing ramp-up
BUY, Fair Value DKK1350 (+35%)
Q1 revenues were slightly above our estimates, while net result was somewhat lower than anticipated due to non-cash items (in this case, FX unrealised losses because of a weak USD vs DKK over the period). But more importantly, management stated during the conference call that 1/ the top-line results from POLLUX should be published in the very near future; 2/ in theory, an HR of 0.4 (which would be similar to what we saw in the CASTOR study) is entirely achievable... And should it be the case, “dara” would be much more powerful than what we (and probably the consensus) previously thought. BUY reiterated with a FV of DKK1,350, bearing in mind that this figure could be increased by more than DKK50-100m depending on POLLUX results.
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