Financial Performance First Half of 2018
Revenue was DKK 1,191 million in the first half of 2018 compared to DKK 1,024 million in the first half of 2017. The increase of DKK 167 million, or 16%, was mainly driven by the payment from Novartis of USD 50 million and higher DARZALEX royalties, partly offset by a decrease in DARZALEX milestones.
Operating expenses were DKK 732 million in the first half of 2018 compared to DKK 442 million in the first half of 2017. The increase of DKK 290 million, or 66%, was driven by the advancement of tisotumab vedotin, additional investments in our product pipeline, and the increase in employees to support expansion of our product pipeline.
Operating income was DKK 459 million in the first half of 2018 compared to DKK 582 million in the first half of 2017. The decrease of DKK 123 million, or 21%, was driven by increased operating expenses, which was partly offset by higher revenue.
Subsequent Events
July: The Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency (EMA) issued a positive opinion recommending broadening the existing marketing authorization for DARZALEX in the European Union. The recommendation is for the use of DARZALEX in combination with bortezomib, melphalan and prednisone (VMP) for the treatment of adult patients with newly diagnosed multiple myeloma who are ineligible for autologous stem cell transplant (ASCT).
July: Genmab entered into a research collaboration and exclusive license agreement with Immatics Biotechnologies GmbH (Immatics) to discover and develop next-generation bispecific immunotherapies to target multiple cancer indications. Genmab received an exclusive license to three proprietary targets from Immatics, with an option to license up to two additional targets at predetermined economics. The companies will conduct joint research, funded by Genmab, on multiple antibody and/or T-cell receptor-based bispecific therapeutic product concepts. Genmab may elect to progress any resulting product candidates, and will be responsible for development, manufacturing and worldwide commercialization. For any products that are commercialized by Genmab, Immatics will have an option to limited co-promotion efforts in selected countries in the EU. Under the terms of the agreement, Genmab will pay Immatics an upfront fee of USD 54 million and Immatics is eligible to receive up to USD 550 million in development, regulatory and commercial milestone payments for each product, as well as tiered royalties on net sales.
Outlook
Genmab is maintaining its 2018 financial guidance published on February 21, 2018.