Genmab — Earnings Release 2013

Dec 6, 2013

Company Announcement

-- Genmab to receive $4 million milestone payment in DuoBody® collaboration
with Janssen
-- 2013 financial guidance improved

Copenhagen, Denmark; December 6, 2013 – Genmab A/S (OMX: GEN) announced today
it has reached a new milestone in its DuoBody technology platform collaboration
with Janssen Biotech, Inc. (“Janssen”), triggering a $4 million milestone. The
milestone payment is for pre-clinical progress on the EM1-mAb DuoBody product
which targets EGFr and cMet, two validated targets for cancer therapy.

“This pre-clinical milestone marks robust and very rapid progress in our
DuoBody technology collaboration with Janssen. The pre-clinical data for
EM1-mAb has been encouraging so far and we are proud that both antibodies used
to generate this unique bispecific product were created at Genmab,” said Jan
van de Winkel, Chief Executive Officer of Genmab.

Outlook
Genmab is improving its 2013 financial guidance as published on November 26,
2013.

Income Statement Revised Guidance Previous Guidance
(MDKK) (MDKK)

---

Revenue 645 – 670 595 - 635

Operating expenses (600) – (625) (600) – (625)

Operating result continuing 20 – 70 (30) – 35
operations

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Discontinued operation 42 42

Cash Position Revised Guidance (MDKK) Previous Guidance
(MDKK)

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Cash position beginning of 1,516 1,516
year*

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Cash used in operations (180) – (230) (180) – (230)

MN facility sale 52 52

Warrant exercise 155 155

Cash position at end of year* 1,475 – 1,525 1,475 – 1,525

*Cash, cash equivalents, and marketable securities

Continuing Operations
We are improving the revenue guidance which is now expected to be in the range
of DKK 645 – 670 million compared to DKK 595 – 635 million in the previous
guidance. This is mainly due to the achievement of the USD 4 million
(approximately DKK 22 million) DuoBody milestone and the achievement of the
Lundbeck milestone, of approximately DKK 11 million, announced earlier today.

There is no change to the operating expense guidance, which remains at DKK 600
– 625 million.

As a result of the improved revenue, we now project operating income of DKK 20
– 70 million compared to the previous guidance which called for an operating
result ranging from a loss of DKK 30 million to income of DKK 35 million.

Cash Position
There is no change to the cash position as the receipt of the milestones is
anticipated in 2014. As of December 31, 2012, we had a cash position of DKK
1,516 million and we are projecting a cash burn from operations in 2013 of DKK
180 - 230 million. With the proceeds from warrant exercises of DKK 155 million
and the facility sale of DKK 52 million we are projecting a cash position at
the end of 2013 of DKK 1,475 – 1,525 million.

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; achievement of certain milestones associated with our collaboration
agreements; Arzerra sales and corresponding royalties to Genmab; fluctuations
in the value of our marketable securities; and currency exchange rates. The
financial guidance also assumes that no significant agreements are entered into
during 2013 that could materially affect the results.

About the DuoBody Technology Collaboration with Janssen
Under the original agreement, Janssen has the right to use the DuoBody
technology to create panels of bispecific antibodies (up to 10 DuoBody
programs) to multiple disease target combinations with Genmab research funded
by Janssen. Genmab received an upfront payment of $3.5 million (approx. DKK 21
million on the date of the agreement) from Janssen in July 2012 and will
potentially be entitled to milestone and license payments of up to
approximately $175 million (approx. DKK 1,062 million on the date of the
agreement), as well as royalties for each commercialized DuoBody product.

Under the terms of a December 2013 amendment, Janssen is entitled to work on up
to ten additional programs. Genmab received an initial payment of $2 million
(approximately DKK 11 million on the date of the amendment) from Janssen. For
each of the ten additional programs that Janssen successfully initiates,
develops and commercializes, Genmab will potentially be entitled to milestone
and license payments of up to approximately $174 million (DKK 956 million on
the date of the amendment) to $219 million (DKK 1.2 billion on the date of the
amendment), depending on the date each program is initiated. In the most
favorable scenario in which all ten additional programs are successfully
initiated, developed and commercialized, Genmab would receive average milestone
and license payments of approximately $191 million (DKK 1.0 billion on the date
of the amendment) for each of the ten programs. In addition, Genmab will be
entitled to royalties on sales of any commercialized products.

About the DuoBody Platform
The DuoBody platform is an innovative platform for the discovery and
development of bispecific antibodies that may improve antibody therapy of
cancer, autoimmune, infectious and central nervous system disease. Bispecific
antibodies bind to two different epitopes either on the same, or on different
targets (also known as dual-targeting) which may improve the antibodies'
specificity and efficacy in inactivating the disease targets. DuoBody molecules
are unique in combining the benefits of bispecificity with the strengths of
conventional antibodies which allows DuoBody molecules to be administered and
dosed as other antibody therapeutics. Genmab's DuoBody platform generates
bispecific antibodies via a fast and broadly applicable process which is easily
performed at standard bench, as well as commercial, manufacturing scale.

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®), 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 A/S and its subsidiaries own the following trademarks: Genmab®; the
Y-shaped Genmab logo®; Genmab in combination with the Y-shaped Genmab logo(TM);
the DuoBody™ logo; HuMax®; HuMax-CD20®; DuoBody®, HexaBody(TM) and UniBody®.
Arzerra® is a registered trademark of GlaxoSmithKline.

Company Announcement no. 54
CVR no. 2102 3884

Genmab A/S
Bredgade 34E
1260 Copenhagen K
Denmark