Danish biotechnology company Genmab has made a major breakthrough in the development of new cancer drugs! Three of its cancer treatment drugs have successively achieved positive results in the third phase of clinical trials. One of the new drugs for head and neck cancer was used in combination with Keytruda, a subsidiary of Merck & Co., and reduced the risk of patient death by 50%. The company's stock price doubled in just 3 months. Last week, it soared 48% in a single week, becoming the focus of the market.
"CNBC" reported that Genmab announced on October 28 that its experimental head and neck cancer therapy petosemtamab was used in combination with Keytruda in a Phase 3 clinical trial for patients with recurrent or metastatic head and neck cancer. Compared with using Keytruda alone, the patient's risk of death was reduced by 50%, and the tumor response rate was also significantly improved, without any new safety concerns.
This result triggered an enthusiastic response in the market, and Genmab's stock price soared 29% that day. Chief Executive Jan van de Winkel said that this combination therapy has the potential to establish a new standard for related cancer treatments.
In addition to head and neck cancer drugs, two other cancer therapies under Genmab also received good news in October.
The first is the ovarian cancer treatment drug Rina-S. In the Phase 3 clinical trial, compared with chemotherapy, patients’ risk of disease progression or death was reduced by 71%, and the risk of death was also reduced by 57%. Analysts at Barclays believe the drug has the opportunity to provide another treatment option for patients who are not suitable for AbbVie's competing therapy Elahere, or whose condition worsens despite use.
The second one, Epkinly, co-developed with AbbVie, targets patients with previously untreated diffuse large B-cell lymphoma. When combined with standard chemotherapy, it reduces the risk of disease progression or death by 51%.
In just one month, three drugs have successively achieved positive results in phase 3 clinical trials, which has also caused investors to re-evaluate the market value of Genmab.
Analysts are particularly bullish on the market potential of petosemtamab. Jefferies estimates that if used to treat recurrent or metastatic head and neck cancer, the drug's global annual peak sales may reach US$3.5 billion; if it is further expanded to locally advanced diseases in the future, it may create an additional US$3.5 billion in annual sales opportunities.
The core of Genmab's business is built on antibody drugs, including so-called bispecific antibodies such as petosemtamab. This class of drugs can bind to two different targets on cancer cells at the same time. Petosemtamab targets two proteins, EGFR and LGR5, and is designed not only to block signals that help cancer cells grow, but also to prompt the immune system to attack tumors.
In the past, Genmab mainly made profits through licensing cooperation and drug royalties, such as Johnson & Johnson's multiple myeloma drug Darzalex. Johnson & Johnson predicts that the sales of Darzalex this year will reach 16.5 billion to 16.9 billion US dollars, and Genmab can obtain up to 20% of the royalties. However, the company has been actively transforming in recent years, hoping to take more ownership of its self-developed drugs so as to retain a larger proportion of drug sales revenue.
Van der Winkel said Genmab's expertise in antibodies and their interaction with the immune system also helps the company identify potential drugs being developed by others. For example, Genmab acquired Merus for US$8 billion in 2025 to acquire petosemtamab; in 2024, it acquired ProfoundBio for US$1.8 billion to acquire Rina-S. Currently, a total of 15 Phase 3 clinical trials of the company's three main drug candidates are underway, and these acquisitions have become the core of Genmab's business model transformation.
Genmab holds full ownership rights to petosemtamab and Rina-S, while Epkinly shares commercial proceeds equally with AbbVie. The drugs allow Genmab to retain a larger share of revenue than it had in the past with Johnson & Johnson and Novartis.
Genmab is expected to announce its third-quarter financial results on November 5.
