Jyske Bank cheers Genmab shares despite worries over deal with J&J

Jyske Bank keeps "buy" rating for Genmab GMAB.CO, even though it notes uncertainty over Danish drug maker's partnership with Johnson & Johnson JNJ.N has weighed on its shares

The clarification of the partnership, which concerns the Hexabody-CD38 cancer drug, could come as soon as this week, the broker says

"Our feeling is that the market is predominantly leaning towards the deal not going through," says Jyske Bank, adding it bases this on the price movement over the past year

Jyske Bank notes that the outcome of the decision is "very difficult to call," but assesses the market has partially priced in the negative outcome

The broker also notes that at the current share price level new investors will get the entire pipeline for free

But Jyske Bank says Genmab can put the uncertainty behind after the announcement and focus on overcoming the Darzalex patent expiration in 2030, when other products will become important

Jyske Bank therefore sees less downside risk than upside potential