Genmab — Earnings Release 2012

Dec 13, 2012

News Details

Ad-hoc | 13 December 2012 17:56

Genmab Reduces Fair Value of Minnesota Manufacturing Facility to Zero, Moves Sale into 2013 and Updates 2012 Guidance

Genmab A/S

13.12.2012 17:56

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The issuer is solely responsible for the content of this announcement.

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Company Announcement

-- Fair value of the manufacturing facility reduced to zero
-- Non-cash impairment charge of DKK 331 million (USD 58 million)
-- Sale now projected in Q1 2013, aggressive sales process proceeding
-- No impact to guidance from continuing operations

Copenhagen, Denmark; December 13, 2012 - Genmab A/S (OMX: GEN) announces a
change to the previous guidance from November 7, 2012 to reflect the reduction
in value of the Minnesota manufacturing facility and a move of the sale into
2013.

'There was a lot of activity and interest in the facility over recent months,
but no firm offer has been received. Due to the continued uncertainty, we have
taken the step to write down the facility to zero and will now enter into an
aggressive sales process with the aim of closing a transaction within the next
few months,' said Jan van de Winkel, Ph.D. Chief Executive Officer of Genmab.

The fair value of the facility less costs to sell has been reduced from USD 58
million to zero, this results in the recognition of a non-cash impairment
charge of approximately DKK 331 million at a USD/DKK exchange rate of 5.7054.

Genmab is now proceeding with an aggressive sales process aided by its agent
PharmaBioSource. Additional information on the opportunity to acquire this
facility can be found on the dedicated website http://genmab-facility.com.

Following the reduction in the fair value of the Minnesota facility and the
transfer of a projected sale to the first quarter of 2013, Genmab is changing
the 2012 financial guidance as previously announced on November 7, 2012. There
are no changes to the results from continuing operations or to the year end
cash balance excluding the sale of the facility.

OUTLOOK

MDKK Revised Guidance Dec. Previous
13, 2012 Guidance
Nov. 7,
2012

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Revenue 450 - 475 450 - 475

Operating expenses (600) - (625) (600) -
(625)

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Operating loss continuing operations (125) - (175) (125) -
(175)

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Discontinued operation (371) (40)

Cash position beginning of year* 1,105 1,105

Cash used in operations (360) - (385) (360) -
(385)

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Cash from license & share 800 800
subscription agreement

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Cash position at end of year* excl. MN 1,520 - 1,545 1,520 -
facility sale 1,545

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Facility sale - 320

Cash position at end of year* 1,520 - 1,545 1,840 -
1,865

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*Cash, cash equivalents, and marketable
securities

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Continuing Operations
Our guidance for continuing operations remains the same as the Guidance issued
on November 7, 2012.

Discontinued Operation
The discontinued operation guidance of DKK 371 million includes a non-cash
impairment charge of DKK 331 million and DKK 40 million relating to the ongoing
running costs. The previous guidance of DKK 40 million only included the
ongoing running costs.

The non-cash impairment of DKK 331 million reflects a reduction in the fair
value of the facility, less cost to sell, from USD 58 million, to zero.

Cash Position
As of December 31, 2011, we had a cash position of DKK 1,105 million and are
projecting a cash burn from operations in 2012 of DKK 360 - 385 million. This
is the same as the previous guidance.

With additional cash of approximately DKK 800 million from the equity
investment and upfront payment related to the daratumumab license agreement and
share subscription agreement, we are projecting a cash position at the end of
2012, excluding the facility sale, of DKK 1,520 - 1,545 million. Again, this is
the same as the previous guidance.

We are now projecting the sale of the manufacturing facility in Q1 2013 but
have written the fair value down to zero. The projected cash position at the
end of 2012 in the revised guidance is therefore DKK 1,520 - 1,545 million,
compared to the previous guidance of DKK 1,840 - 1,865 million. The previous
guidance assumed a sale of the facility in 2012 for USD 58 million,
approximately DKK 320 million at an assumed USD/DKK exchange rate of 5.50.

In addition to factors already mentioned, the estimates above are subject to
change for numerous reasons, including but not limited to, the timing and
variation of development activities (including activities carried out by our
collaboration partners) and related income and costs; fluctuations in the value
of our marketable securities; Arzerra sales and corresponding royalties to
Genmab; and currency exchange rates.

About Genmab A/S
Genmab is a publicly traded, international biotechnology company specializing
in the creation and development of differentiated human antibody therapeutics
for the treatment of cancer. Founded in 1999, the company's first marketed
antibody, ofatumumab (Arzerra(r)), was approved to treat chronic lymphocytic
leukemia in patients who are refractory to fludarabine and alemtuzumab after
less than eight years in development. Genmab's validated and next generation
antibody technologies are expected to provide a steady stream of future product
candidates. Partnering of innovative product candidates and technologies is a
key focus of Genmab's strategy and the company has alliances with top tier
pharmaceutical and biotechnology companies. For more information visit
www.genmab.com.

Contact:
Rachel Curtis Gravesen, Senior Vice President, Investor Relations &
Communications
T: +45 33 44 77 20; M: +45 25 12 62 60; E: r.gravesen@genmab.com

This Company Announcement 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
pre-clinical and clinical development of products, 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
risk management sections in Genmab's most recent financial reports, which are
available on www.genmab.com. Genmab does not undertake any obligation to update
or revise forward looking statements in this Company Announcement 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-CD20(r); DuoBody(r) and UniBody(r)
are all trademarks of Genmab A/S. Arzerra(r) is a trademark of GlaxoSmithKline.

Company Announcement no. 39
CVR no. 2102 3884

Genmab A/S
Bredgade 34E
1260 Copenhagen K
Denmark

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Language: English
Company: Genmab A/S

          Dänemark

Phone:
Fax:
E-mail:
Internet:
ISIN: DK0010272202
WKN:

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