Genmab's stock surges after drug development deal

Genmab's stock surges after drug development deal with AbbView valued at up to nearly $4 billion

Published: June 10, 2020 at 6:12 a.m. ET
By Tomi Kilgore
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Shares of Genmab A/S GMAB, +1.33% rose 4.5% in premarket trading Wednesday, after the Denmark-based biotechnology company announced a collaboration agreement with AbbVie Inc. ABBV, +1.67% valued at up to nearly $4 billion to develop Genmab's three antibody product candidates to treat cancer. AbbVie's stock gained 0.7% ahead of the open. As part of the agreement, AbbVie will make a $750 million upfront payment to Genmab, and could make up to $3.15 billion in potential payments for development, regulatory and sales milestones. Included in the potential milestones are up to $1.15 billion in payments related to clinical development and commercial success. Genmab is also eligible to receive up to $2 billion in option exercise and success-based milestone payments. Shares of Genmab have rallied 29.2% year to date through Tuesday and AbbVie have climbed 8.6%, while the S&P 500 SPX, -0.78% has slipped 0.7%.

Genmab is a publicly traded, international biotechnology company specializing in the creation and development of differentiated antibody therapeutics for the treatment of cancer. Founded in 1999, the company has three approved products in collaboration, DARZALEX® (daratumumab), Arzerra® (ofatumumab) and TEPEZZA™ (teprotumumab ), and is developing a clinical pipeline of antibody therapeutics for the treatment of cancer.