Genmab Announces Results for the First Nine Months of 2008



    COPENHAGEN, Denmark, Oct. 29 /CNW/ -

    
    -   Summary: Genmab Reports Results for the Nine Month Period Ended
        September 30, 2008

    Genmab A/S (OMX: GEN) announced today results for the nine month period
ended September 30, 2008. During this period, Genmab reported the following
results:

    -   Genmab's revenues were DKK 667 million (USD 128 million) for the nine
        month period ended September 30, 2008. In the same period of 2007,
        Genmab recognized revenues of DKK 356 million (USD 68 million).

    -   An operating loss of DKK 508 million (USD 97 million). This compares
        to an operating loss of DKK 309 million (USD 59 million) reported for
        the corresponding period of 2007. The larger operating loss was
        driven by the increased level of pre-clinical and clinical activities
        associated with the advancement of our product pipeline.

    -   Net financial income for the nine month period ended September 30,
        2008 reflected a net loss of DKK 18 million (USD 4 million), compared
        to a net income of DKK 48 million (USD 9 million) in the same period
        of 2007. The net financial income reflects a combination of interest
        income and fair market value adjustments on our portfolio of
        marketable securities and unrealized foreign exchange adjustments.
        Our net financial income was negatively impacted by the continued
        international financial credit crisis.

    -   A net loss of DKK 526 million (USD 101 million) compared to a net
        loss of DKK 261 million (USD 50 million) for the same period in 2007.
        The net loss per share was DKK 11.81 (USD 2.26) for the first nine
        months of 2008 compared to DKK 5.97 (USD 1.14) in the first nine
        months of 2007.

    -   Genmab ended the nine month period with cash and marketable
        securities of DKK 2.1 billion (USD 402 million), which is a decrease
        of DKK 1.6 billion (USD 306 million) from the end of 2007. The
        decrease primarily arises from the DKK 1.2 billion (USD 240 million
        at the date of acquisition) acquisition of the manufacturing facility
        in March 2008.

    Highlights

    During the third quarter of 2008, Genmab achieved a number of business and
scientific milestones, as follows:

    -   We announced positive top-line results from a Phase III pivotal study
        evaluating ofatumumab (HuMax-CD20(R)) in two groups of patients with
        chronic lymphocytic leukaemia (CLL). The study met the primary
        endpoint in both patient populations and the results from the
        secondary endpoints also supported the primary endpoint. This event
        also marked the achievement of a DKK 233 million milestone under the
        GlaxoSmithKline (GSK) collaboration agreement.

    -   We completed recruitment in a second pivotal ofatumumab study in
        refractory non-Hodgkin's Lymphoma (NHL) patients and in two Phase II
        studies. Data from all three are expected in 2009.

    -   We announced plans to begin four studies with ofatumumab this year:

    1)  Phase III CLL front line chlorambucil combination study.

    2)  Phase II CLL ofatumumab retreatment and maintenance treatment study
        for patients who have participated in the ongoing Phase III CLL
        study.

    3)  Phase II NHL ofatumumab retreatment and maintenance study for
        patients who have participated in the ongoing Phase III NHL study.

    4)  Phase I study in Japan. In September we received a milestone payment
        of DKK 29 million for this study.

    Subsequent to the balance sheet date:

    -   We announced the outcome of a portfolio and organizational review. We
        conducted this review in order to bring greater focus to creating the
        most potential value for patients and shareholders and to build a
        sustainable business. As a result of the review, we plan to
        concentrate on development of cancer therapeutics and will focus on a
        less broad, but higher potential portfolio. Consequently, key
        decisions from the review include discontinuing the zanolimumab
        program, moving to out-license three pre-clinical programs and
        reducing head count by approximately 100 employees, or 15%.

    -   We announced data showing that rheumatoid arthritis patients who
        participated in the ofatumumab Phase II study achieved long lasting
        results at the 48 week follow up period.
    

    Outlook

    Genmab is maintaining its 2008 financial guidance with a net loss in the
range of DKK 800 to 900 million and projects that the operating loss will be
at the lower end of the prior guidance of DKK 850 to 950 million.
    The revenue is also anticipated to be at, or slightly below, the range
indicated in the prior guidance of DKK 850 to 900 million due to a slight
change in the timing of some anticipated milestone events. However, savings
driven by reductions in our research and development costs resulting from our
efforts to focus on the most critical programs in our portfolio in the most
efficient manner, more than offset the change in revenue and lower net
financial income.
    We expect that the net financial income will be lower than the previous
guided income of DKK 40 to 50 million due to the impact of the turbulent
credit markets on the fair market values of our marketable securities.
    As of December 31, 2007, Genmab had cash, cash equivalents and short-term
marketable securities of DKK 3.7 billion. For 2008, we project that our
operations together with the DKK 1.2 billion acquisition of the manufacturing
facility in Minnesota will lead to a year end cash position of DKK 1.7 to
1.8 billion, unchanged from previous guidance.

    Pre-clinical Program Overview

    During tomorrow's conference call, Genmab will provide an overview of
some of its pre-clinical programs. Genmab is working very actively on multiple
pre-clinical cancer programs including antibodies directed to the clinically
validated targets Her-2 and VEGF as well as antibodies to two novel targets,
Tissue Factor and a target expressed on cancer stem cells.

    Conference Call

    Genmab will hold a conference call to discuss the results for the first
nine months of 2008 tomorrow, Thursday, October 30, 2008, at

    
    2:00 pm CET
    1:00 pm GMT
    9:00 am EDT

    The conference call will be held in English.
    The dial in numbers are as follows:
    +1-800-304-7079 (in the US) and ask for the Genmab conference call
    +1-706-634-5694 (outside the US) and ask for the Genmab conference call
    Please provide the following conference ID number: 69561922.

    A live webcast of the call and relevant slides will be available at
http://www.genmab.com. The webcast will also be archived on Genmab's website.

    Selected Consolidated Key Figures

                               2008         2007         2008         2007
                             DKK'000      DKK'000      USD'000      USD'000

    Income Statement
    Revenues                  667,496      356,062      127,959       68,257
    Research and
     development costs     (1,020,774)    (582,045)    (195,682)    (111,578)
    General and
     administrative
     expenses                (110,265)     (82,973)     (21,138)     (15,906)
    Operating loss           (508,057)    (308,956)     (97,394)     (59,227)
    Net loss                 (526,474)    (261,226)    (100,925)     (50,077)

    Balance Sheet
    Cash and marketable
     securities             2,095,389    3,921,296      401,685      751,710
    Non-current assets      1,284,660       32,874      246,269        6,303
    Assets                  3,641,566    4,092,670      698,086      784,564
    Shareholders' equity    2,546,762    2,972,654      488,213      569,856
    Share capital              44,735       44,506        8,576        8,532

    Cash Flow
    Statement
    Cash flow from
     operating activities    (288,652)     692,865      (55,334)     132,821
    Cash flow from
     investing activities     349,576   (2,530,227)      67,015     (485,043)
    Cash flow from
     financing activities      13,334    1,560,631        2,556      299,172

    Financial Ratios
    (in DKK/USD)
    Basic and diluted net
     loss per share            (11.81)       (5.97)       (2.26)       (1.14)
    Period-end share
     market price              300.00       325.00        57.51        62.30
    Price/book value             5.27         4.87         5.27         4.87

    Shareholders' equity
     per share                  56.93        66.79        10.91        12.80
    Equity ratio                   70%          73%          70%          73%

    Average number of
     employees                    535          288          535          288
    Number of employees at
     the end of the period        643          335          643          335
    

    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, development and manufacturing 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 http://www.genmab.com.

    This press 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 http://www.genmab.com. Genmab does not undertake any obligation
to update or revise forward looking statements in this press 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-CD4(R),
HuMax-CD20(R); HuMax-EGFr(TM); HuMax-IL8(TM); HuMax-TAC(TM); HuMax-HepC(TM);
HuMax-CD38(TM); HuMax-CD32b(TM) and UniBody(R) are all trademarks of Genmab
A/S.





For further information:

For further information: Helle Husted, Sr. Director, Investor Relations,
T: +45-33-44-77-30, M: +45-25-27-47-13, E: hth@genmab.com

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