Summary: Genmab has revised its 2009 financial guidance.
Copenhagen, Denmark; August 17, 2009 - Genmab A/S (OMX: GEN) announced today it
is revising its 2009 financial guidance. We now expect our 2009 revenue to be
approximately DKK 750 million compared to the previous estimate of DKK 1.2
billion. The reduction in revenue is primarily due to the exclusion of a
milestone payment under the Arzerra(TM) (ofatumumab) collaboration with
GlaxoSmithKline.
With a continued focus on cost control we now anticipate that our operating
expenses will be approximately DKK 1.4 billion, DKK 200 million below our
previous guidance of DKK 1.6 billion. This will result in a revised operating
loss of approximately DKK 650 million, as compared to our previous guidance of
DKK 400 million.
We now expect the cash burn for 2009 to be approximately DKK 700 million
compared to previous guidance of DKK 500 million. Therefore we project a cash
balance at the end of the year of approximately DKK 1,050 million, DKK 200
million below our previous guidance.
2009 Guidance
New Previous
DKK USD DKK USD
Millions Millions Millions Millions
Revenue 750 142 1,200 228
Operating expenses 1,400 265 1,600 304
Operating loss (650) (123) (400) (76)
Cash burn (700) 133 (500) (95)
Cash at end of year* 1,050 199 1,250 237
*Cash, cash equivalents and marketable securities
The estimates above are subject to change due to numerous factors, including the
timing and variation of development activities, related income and costs and
fluctuations in the value of our marketable securities and currency exchange
rates. The financial guidance also assumes that no further significant
agreements are entered into during 2009 that could materially affect the
results.
Conversion of our 2009 guidance has been made using the Danish Central Bank
closing spot rate on June 30, 2009 of USD 1.00 = DKK 5.2689.
About Genmab A/S
Genmab is a leading international biotechnology company focused on developing
fully human antibody therapeutics for the potential treatment of cancer.
Genmab's world class discovery, development and manufacturing teams are using
cutting-edge technology to create and develop products to address unmet medical
needs. Our primary goal is to improve the lives of patients who are in urgent
need of new treatment options. For more information on Genmab's products and
technology, visit www.genmab.com.
This Stock Exchange Release contains forward looking statements. The words
“believe”, “expect”, “anticipate”, “intend” and “plan” and similar expressions
identify forward looking statements. Actual results or performance may differ
materially from any future results or performance expressed or implied by such
statements. The important factors that could cause our actual results or
performance to differ materially include, among others, risks associated with
product discovery and development, uncertainties related to the outcome and
conduct of clinical trials including unforeseen safety issues, uncertainties
related to product manufacturing, the lack of market acceptance of our products,
our inability to manage growth, the competitive environment in relation to our
business area and markets, our inability to attract and retain suitably
qualified personnel, the unenforceability or lack of protection of our patents
and proprietary rights, our relationships with affiliated entities, changes and
developments in technology which may render our products obsolete, and other
factors. For a further discussion of these risks, please refer to the section
“Risk Management” in Genmab's Annual Report, which is available on
www.genmab.com. Genmab does not undertake any obligation to update or revise
forward looking statements in this Stock Exchange Release nor to confirm such
statements in relation to actual results, unless required by law.
Genmab(R); the Y-shaped Genmab logo(R); HuMax(R); HuMax-CD20(R); HuMax-EGFr(TM);
HuMax-IL8(TM); HuMax-TAC(TM); HuMax-HepC(TM); HuMax-CD38(TM); HuMax-CD32b(TM);
HuMax-TF(TM); HuMax-Her2(TM); HuMax-VEGF(TM) and UniBody(R) are all trademarks
of Genmab A/S. Arzerra(TM) is a trademark of GlaxoSmithKline.
Contact: Helle Husted, Vice President, Investor Relations, T: +45 33 44 77 30,
M: +45 25 27 47 13, E: h.husted@genmab.com
Stock Exchange Release no. 32/2009
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