Summary: Genmab announces a corporate strategy update.
Copenhagen, Denmark; September 14, 2010 - Genmab A/S (OMX: GEN) announced today
an update to its corporate strategy. Going forward the company will employ a
three-pronged strategic approach:
- Focus on the core competence of identifying the best disease targets and
developing unique best-in-class or first-in-class antibodies, and be at the
leading edge in developing next generation technologies
- Turn science into medicine by producing innovative antibodies with significant
commercial potential and that make business sense
- Build a profitable and successful biotech by maintaining a flexible and
capital efficient model by maximizing partnership relationships
“Today's strategy update represents a new beginning for Genmab where we
acknowledge our successes and learn from our mistakes. Our updated strategy
encompasses the best and most central aspects of our previous strategy while
strengthening focus, discipline and balance,” said Prof. Jan van de Winkel,
Ph.D., Chief Executive Officer of Genmab. “We intend to deliver on our promises
and build the trust and confidence of our investors and other stakeholders. The
collaboration with Seattle Genetics represents a first step in the execution of
our new strategy and we are pleased to gain a partner with innovative antibody
technology that complements our own.”
Key Elements
Following the appointment of Prof. van de Winkel as CEO in June and the
successful renegotiation of the ofatumumab partnership with GlaxoSmithKline,
which boosted Genmab's financial security and reduced funding concerns for the
coming years, the company is well set to execute the updated strategy. To
achieve our strategic aims the company will focus on the dominant priorities,
act in a disciplined manner and balance scientific, medical and business factors
to advance products through its pipeline.
- The current dominant priorities include - maximizing value from our most
advanced products ofatumumab and zalutumumab; setting up new strategic
partnerships to extract optimal value from our preclinical pipeline and research
capabilities using our Utrecht research facility as a profit center, not just a
cost center; and establishing new ways to advance and validate next generation
technologies like Bispecifics by exploring business models that require limited
capital investment by Genmab while retaining optimal access and upside.
- We will use a disciplined approach to manage cash burn with the intention to
reduce operating expenses by 20% in 2011. We will also carefully and
thoughtfully develop trial designs which will provide greater return on
investment.
- Finally, the company will balance scientific and medical rationales with
business rationale to develop the best products. Genmab has established a
multi-disciplined Portfolio Board charged with determining which products the
company should invest in to create the most value. The value will be driven
through the establishment of partnerships at different stages of product
development.
Today, Genmab announced one such partnership, a research collaboration with
Seattle Genetics to develop antibody-drug conjugates (ADC). Under the terms of
the collaboration, Genmab will gain access to Seattle Genetics ADC technology
for use with the company's HuMax-TF antibody (Tissue Factor). Please refer to
today's earlier press release for further details on this collaboration.
A presentation outlining Genmab's updated strategy will be available on the
company's website at www.genmab.com.
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 and development 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); HuMax-Wnt; HuMax-cMet(TM) and
UniBody(R) are all trademarks of Genmab A/S. Arzerra(R) 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. 35/2010
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