Genmab 2011 Annual Report

Copenhagen, Denmark; March 7, 2012 – Genmab A/S (OMX: GEN) today published its Annual Report for 2011. Below is a summary from the report of business progress and financial performance for the year and financial outlook for 2012. The full report is attached in PDF form here and available on the investor section of the company’s website www.genmab.com.

2011 HIGHLIGHTS

Business Progress

Maximizing the Value of ofatumumab

• Launched in 23 countries by end of 2011 under the trade name Arzerra®
• Increased sales in GBP by 40%, resulting in DKK 75 million in royalty income to Genmab
• GSK initiated first study of subcutaneous ofatumumab in relapsing remitting multiple sclerosis (RRMS)
• More than 75 Investigator Sponsored Studies (ISS) planned or ongoing 

Progressing Our Pipeline

• Initiated three new clinical studies
• Published data from nine clinical studies
• Fifteen abstracts published at American Society of Hematology Annual Meeting
• Announced decision to wind down the zalutumumab program
• Announced HuMax®-CD74 antibody-drug conjugate (ADC) as new IND candidate

Driving Value through Collaborations

• Expanded research collaboration with Seattle Genetics to include HuMax-CD74 ADC
• Achieved first pre-clinical milestone in Lundbeck collaboration
• Entered DuoBody™ research collaboration with undisclosed pharmaceutical company

Progressing Next Generation Technologies

• Presented update on DuoBody platform at R&D Day
• Validated large scale manufacturing process for DuoBody products

Financial Performance

• Revenue decreased by DKK 231 million, 40%, from DKK 582 million in 2010 to DKK 351 million, mainly due to the inclusion of two milestone payments from GSK in 2010.
• Operating expenses decreased by DKK 143 million, 19%, from DKK 743 million in 2010 to DKK 600 million.
• Operating loss was DKK 249 million in 2011 compared to DKK 161 million in 2010. Despite the reduction in revenue the increase was limited to DKK 88 million due to a continued focus on cost control.
• Due to the difficult general market conditions, worsening economic outlook and other factors, the fair value less cost for a sale of the company’s manufacturing facility has been reduced from approximately USD 120 million to USD 58 million, resulting in a non-cash impairment charge of DKK 342 million. The expected sale was moved to 2012.
• 2011 year end cash position of DKK 1,105 million compared to DKK 1,546 million as of December 31, 2010.
• Exceeded original and latest guidance from continuing operations in 2011 through further reductions in operating expenses.

2012 OUTLOOK 

Conference Call
Genmab will hold a conference call in English to discuss the results for the full year 2011 today, Wednesday, March 7, at 6.30 pm CET, 5.30 pm GMT or 12.30 pm EST. The dial in numbers are:

+1 718 354 1226 (US participants) and ask for the Genmab conference call
+44 207 509 5139 (international participants) and ask for the Genmab conference call

A live and archived webcast of the call and relevant slides will be available at www.genmab.com.


About Genmab A/S
Genmab is a publicly traded, international biotechnology company specializing in the creation and development of differentiated human antibody therapeutics for the treatment of cancer.  Founded in 1999, the company’s first marketed antibody, ofatumumab (Arzerra®), was approved to treat chronic lymphocytic leukemia in patients who are refractory to fludarabine and alemtuzumab after less than eight years in development.  Genmab’s validated and next generation antibody technologies are expected to provide a steady stream of future product candidates.  Partnering of innovative product candidates and technologies is a key focus of Genmab’s strategy and the company has alliances with top tier pharmaceutical and biotechnology companies.  For more information visit www.genmab.com.

Contact:          
Rachel Curtis Gravesen, Senior Vice President, Investor Relations & Communication
T: +45 33 44 77 20; M: +45 25 12 62 60; E: r.gravesen@genmab.com

This Company Announcement 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 pre-clinical and clinical development of products, 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 risk management sections in Genmab’s most recent financial reports, which are available on www.genmab.com. Genmab does not undertake any obligation to update or revise forward looking statements in this Company Announcement nor to confirm such statements in relation to actual results, unless required by law.

Genmab^®; the Y-shaped Genmab logo^®; HuMax^®; HuMax-CD20^®; HuMax^®-EGFr; HuMax^®-IL8; HuMax^®-TAC; HuMax^®-CD38; HuMax^®-TF; HuMax^®-Her2; HuMax^®-cMet, HuMax^®-CD74, DuoBody™ and UniBody^® are all trademarks of Genmab A/S. Arzerra^® is a trademark of GlaxoSmithKline.
 

Company Announcement no. 03
CVR no. 2102 3884

Genmab A/S
Bredgade 34
1260 Copenhagen K
Denmark