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This Dutch Drugmaker’s Stock Jumps 38%. Here’s Why.

1. Genmab to acquire Merus for approximately $8 billion in cash. 2. Acquisition includes access to petosemtamab, targeting head and neck cancer. 3. Petosemtamab projected to generate $1 billion annual revenue by 2029. 4. Deal expected to close early in Q1 2026, with initial drug launch in 2027. 5. Genmab stock dropped 4.1% post-announcement, while Merus shares surged 38%.

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FAQ

Why Bullish?

The acquisition gives Genmab access to a promising therapy, enhancing growth potential. Historical acquisitions in biotech, like Amgen's purchase of Onyx, often led to significant stock appreciation post-deal.

How important is it?

The acquisition directly impacts GMAB's growth strategy and potential future revenues from petosemtamab, which is significant.

Why Long Term?

The projected revenue from petosemtamab will take time to materialize, with drug approval expected in 2027, and revenues by 2029.

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