GS: Genmab (OP/N): Abgenix acquisition could
increase interest in Genmab
Company Name: Genmab Ticker: GEN.COPrice:
130 52-Week Price Range (Dkr): 136-98
Year Net EPS . . Gross
Stock Rating: OP
Amgen (NR) has announced an agreed $2.2bn acquisition of Abgenix (NR) at a + 54%
premium. Abgenix?s lead product is the anti-EGF receptor antibody for cancer,
panitumumab. In our view, the proposed acquisition could increase investor and industry
interest in companies with anti-EGFr biologics. As HuMax-EGFr could be in pivotal
phase III studies in 1H 2006, in our view, this increases the likelihood that Genmab could
partner this on very favourable terms. As Genmab owns 100% of HuMax-EGFr (and
100% of HuMax- CD20, also with $1bn+ potential), but has a market value of around
$695mn (equity value $495mn), Genmab could be re-rated from current levels, partly as
there is likely to be speculation that Genmab could also be a target for a larger
pharmaceutical or biotech player. Genmab remains one of our top picks. Goldman, Sachs
& Co., and/or one of its affiliates is acting as advisor to Abgenix Inc. in the proposed sale
of the company to Amgen Inc. Goldman, Sachs & Co., and/or one of its affiliates will
receive a fee for this advisory role.
I, Stephen McGarry, PhD, hereby certify ... |
