Working to
transform the future
of cancer treatment
2021
Annual Report
CVR No. 21 02 38 84
Genmab A/S
Kalvebod Brygge 43
1560 Copenhagen V
Denmark
Using Science
to Turn Insights
into Medicine
Our Purpose
To improve the lives of patients with
cancer by creating and developing
innovative and differentiated antibody
products. It is our reason for being.
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2021 Annual Report / Our Purpose
Table of Contents
Management’s Review
Financial Statements
Our World-class Team
5 About Genmab
54 Risk and Financial Review
55 Risk Management
59 Enterprise Risk Management
60 Financial Review
87 Financial Statements for the
Genmab Group
133 Financial Statements for the
Parent Company
149 Directors’ and Management’s Statement
At the heart of Genmab is our world-class team
of dedicated employees. In this report we will
feature four of these team members, one from
each of our international sites, who exemplify
who we are and how we work.
66 Shareholders and Share Information
on the Annual Report
150 Independent Auditor’s Reports
68 Corporate Responsibility
69 Corporate Social Responsibility and
Sustainability Commitments
73 Genmab’s Task Force on Climate-related
Financial Disclosures
76 Human Capital Management
77 Stakeholder Engagement
79 Corporate Governance
81 Board of Directors
84 Senior Leadership
Other Information
155 Glossary
156 Forward Looking Statement
157 Contact Information
Virág Muladi-Szabó,
HR Operations Associate,
Denmark
Aran Labrijn,
Director,
Antibody Format
Discovery Lead,
the Netherlands
Ibrahima Soumaoro,
Senior Medical
Director, Solid Tumors,
United States
Mika Takaki,
General Manager,
Japan
6 Who We Are
8 Timeline
9 2021 at a Glance
10 Our World-class Team
11 Commercialization
12 Chair’s Statement
14 Letter from the CEO
17 Consolidated Key Figures
18 2022 Outlook
19 Business Model
20 Our Strategy
21 Our Business
22 Research and Development Capabilities
23 Antibody Discovery and Development
24 Products and Technologies
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2021 Annual Report / Table of Contents
Management’s
Review
Genmab is evolving into a fully integrated
biotechnology innovation powerhouse, driven
by its mission to impact patients’ lives.
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Management’s Review
5 About Genmab
21 Our Business
54 Risk and Financial Review
68 Corporate Responsibility
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2021 Annual Report / Management’s Review
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
About Genmab
I chose to work at Genmab because I feel that here I can truly
contribute to an amazing purpose every day; and what a journey it
has been! It is inspiring to welcome numerous new colleagues every
month and participate in one success after another as one team.
Virág Muladi-Szabó, HR Operations Associate, Denmark
6 Who We Are
8 Timeline
9 2021 at a Glance
10 Our World-class Team
11 Commercialization
12 Chair’s Statement
14 Letter from the CEO
17 Consolidated Key Figures
18 2022 Outlook
19 Business Model
20 Our Strategy
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2021 Annual Report / Management’s Review / About Genmab
Who We Are
Our Vision
By 2025, our own product has transformed
cancer treatment, and we have a pipeline of
knock-your-socks-off antibodies.
Genmab’s Growing Organization
and Growing Presence
Princeton, USA
– Translational Research
– Development
– Commercial
– Corporate Functions
Utrecht, NL
– Research
– Translational Research
– Antibody Product Creation
– Corporate Functions
Copenhagen, DK
– HQ
– CMC Operations
– Clinical Operations
– Corporate Functions
Tokyo, JP
– Japan Clinical
– Commercial
– Corporate Functions
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2021 Annual Report / Management’s Review / About Genmab
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Our Core Values
In our quest to turn science into medicine, we use these guideposts
to transform the future of cancer treatment:
• Passion for innovation
• Determination — being the best at what we do
• Integrity — we do the right thing
• We work as one team and respect each other
Our Key Accomplishments
Each of our achievements stands as evidence of our unyielding
determination, including:
• Tivdak® (tisotumab vedotin-tftv), Genmab’s first approved
medicine, co-developed and co-promoted in the U.S. in
partnership with Seagen Inc. (Seagen)
• Creators of four medicines that incorporate Genmab technology
and innovations that are being developed and marketed by global
pharmaceutical and biotechnology companies
• Inventors of four proprietary antibody technologies
• Growing proprietary clinical programs
• Pioneers of a robust preclinical pipeline
• World-class team with deep antibody know-how, and R&D and
commercial expertise
• Partnerships with industry leaders and innovators
• Solid financial foundation
• Building and expanding our capabilities with more than 1,200
team members across our international locations
Who We Are
Creators of the DuoBody® Technology Platform —
Innovative Technology for Bispecific Antibody
Therapeutics
Genmab is a scientific leader in antibody technology, inspired
by the power of the human immune system to fight disease
and with the goal of developing a robust portfolio of investi-
gational medicines with the potential to improve the lives of
patients. Genmab’s proprietary DuoBody technology platform
has been applied to a variety of bispecific antibody products in
development, both in our own pipeline and in programs being
developed by collaboration partners. The technology has been
validated by the continued advancement of these investiga-
tional medicines through clinical development, including one
medicine approved in both the U.S. and in Europe.
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2021 Annual Report / Management’s Review / About Genmab
Approved Medicines that Incorporate
Genmab’s Innovations and Technology
Tivdak
co-developed and co-promoted
in the U.S. in collaboration with
Seagen
DARZALEX® (daratumumab)/
DARZALEX FASPRO®
(daratumumab and
hyaluronidase human-fihj)
developed and marketed by
Janssen Biotech, Inc. (Janssen)
RYBREVANT® (amivantamab)
developed and marketed by
Janssen
Kesimpta® (ofatumumab)
developed and marketed by
Novartis AG (Novartis)
TEPEZZA®
(teprotumumab-trbw)
developed and marketed by
Horizon Therapeutics (Horizon)
Table of
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Management’s
Review
Financial
Statements
Other
Information
Differentiated Pipeline
4Proprietary technology
platforms
• DuoBody
• HexaBody
• DuoHexaBody
• HexElect®
39INDs
Investigational new drug
applications (INDs) filed by
Genmab and/or partners, based
on Genmab’s innovations and
technology, since 1999
6Genmab-owned ≥50%
investigational medicines
in clinical development*
• Tisotumab vedotin
• epcoritamab
• DuoBody-PD-L1x4-1BB
(GEN1046)
• DuoBody-CD40x4-1BB
(GEN1042)
• DuoHexaBody®-CD37
(GEN3009)
• HexaBody®-CD38
(GEN3014)
~20Preclinical projects
Extensive partnered and own
preclinical pipeline
* Tisotumab vedotin co-development with Seagen; epcoritamab and DuoHexaBody- CD37
co-development with AbbVie Inc. (AbbVie); DuoBody-PD-L1x4-1BB and DuoBody-
CD40x4-1BB co-development with BioNTech SE (BioNTech); Genmab is developing
HexaBody-CD38 in an exclusive worldwide license and option agreement with Janssen.
Timeline
Key Events in Genmab’s
Over 20-year Journey
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Financial
Statements
Other
Information
A history of accomplishments rooted in science: From our start in Copenhagen in 1999,
our continued commitment to improving patients’ lives has given us purpose and drive
as we focus on the creation and development of innovative and differentiated antibody
products. We strive to achieve this goal by working together as one team and building on
our world-class research in antibodies to expand our capabilities beyond the lab.
While we are proud of our past accomplishments for getting us to this point, we keep
our eyes and minds focused on what is next. Our history has been powered by a
dedication to developing antibody-based therapeutics. It is this same spirit that will
guide us into the future.
1999–2007
• Genmab founded
• Copenhagen IPO
• First partnership (Roche)
• Ofatumumab program
announced
• CD38 MAbs generated
• Daratumumab selected
• GlaxoSmithKline (GSK)
agreement ofatumumab
2008–2011
2012–2015
2016–2018
2019–2020
2021
• Arzerra® first U.S. and EU
• Janssen DuoBody
• DARZALEX first EU and
• U.S. IPO
approvals
• DuoBody
research and license
agreement
Japan approvals
• HexElect
technology platform
• Janssen agreement
technology platform
• Strategy update
• Collaboration with
Seagen
daratumumab
• HexaBody
technology platform
• DARZALEX1
(daratumumab) first
U.S. approval
• BioNTech agreement
• Opening of office
in Japan
• HexaBody-CD38
agreement (Janssen)
• AbbVie partnership
• First regulatory
approvals for the
following therapies
created with the
application of Genmab’s
innovations:
– Novartis’s Kesimpta
– Horizon’s TEPEZZA
• U.S. approval and launch of Tivdak,
co-promotion with Seagen
• First Phase 3 studies for tisotumab vedotin
and epcoritamab2 initiated
• First approvals for Janssen’s bispecific
RYBREVANT in the U.S. and EU
• Subcutaneous (SC) DARZALEX approved
in territories including U.S., EU and Japan
in newly diagnosed light-chain (AL)
amyloidosis
• Janssen submitted Biologics License
Application (BLA) for bispecific teclistamab
1. Developed and commercialized by Janssen
2. Co-development Genmab and AbbVie
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2021 Annual Report / Management’s Review / About Genmab
Table of
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Management’s
Review
Financial
Statements
Other
Information
Liquidity and
Capital Resources
DKK
DKK
5,464M
2021 operating expenses
77% invested in R&D
10,381M
Marketable securities
DKK
8,957M
Cash and cash equivalents
DKK
22,196M
Shareholders’ equity
2021 at a Glance
Operational
First U.S. Food and Drug
Administration (U.S. FDA)
approval and commercial
launch for a Genmab-owned
(50%) antibody therapy: Tivdak
(co-development with Seagen)
Continued development of
commercialization capabilities
and Genmab’s broader
organizational infrastructure
First U.S. and EU approvals
for a DuoBody-based medicine:
Janssen’s RYBREVANT
Multiple DuoBody-based
investigational medicines
enter Phase 3 development,
including epcoritamab
Financial
DKK
173B
2021 year-end market cap
DKK
8,482M
2021 revenue
First Phase 2 study of
DuoBody-PD-L14-1BB
(GEN1046), in co-development
with BioNTech
Collaborations and licensing
agreements with 10 new
partners
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2021 Annual Report / Management’s Review / About Genmab
Operating Profit
(DKK million)
6,313
2,638
3,018
1,344
1,380
2017
2018
2019
2020*
2021
*2020 Operating Profit impacted by one-time AbbVie upfront payment.
Our World-class Team
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Other
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Rooted in Science, Inspired by Patients
Expanding world-class team:
All four state-of-the-art Genmab
facilities have grown, from 781 total
team members at the end of 2020
to 1,212 at the end of 2021.
Employee well-being: We care
for our team members’ health, well-
being, safety and development
and promote a collaborative culture
that fosters passion for innovation,
integrity and respect. We believe that
diversity, equality and inclusion are
fundamental to achieving our vision.
Commercialization — the next
step in our evolution into an
end-to-end biotech: At Genmab
we have a thoughtful, focused and
deliberate approach to bringing our
medicines to patients.
Inspired by nature: At Genmab’s
core is an integrated R&D organiza-
tion that uses its deep understanding
of antibodies and the human immune
system to develop next-generation
antibody technology platforms and
a robust pipeline of differentiated
antibody-based investigational
medicines.
Data-driven decisions: Genmab’s
teams, including Translational Research
and Data Science, work together to
create an analytics ecosystem that
includes technology, processes and
people working together to integrate
data, allowing for a fast and trans-
parent decision making process.
Data-driven decisions ensure that we
are able to focus on investigational
medicines with the highest potential
for meeting patients’ needs.
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2021 Annual Report / Management’s Review / About Genmab
Table of
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Management’s
Review
Financial
Statements
Other
Information
Commercialization
Enhancing Commercialization Capabilities to Bring Our
Innovations to Patients
• We continue to expand our capabilities as we
prepare for the potential launch of epcoritamab,
pending positive data readouts and regulatory
approvals; deepening our talent base, focusing
on impactful approaches.
• We have built a global commercial team to
help shape our development and go-to-market
strategy in close partnership with R&D. Building
a deep understanding of the potential and
evolution of markets/segments will help ensure
a thoughtful approach to advancing our pipeline.
At Genmab, commercialization is an integrated
approach; everyone doing their part to ensure
patients get the most from our next generation of
differentiated antibody-based medicines.
Our 2025 Vision is for Genmab’s own medicine
to transform cancer treatment. We are becoming
an integrated end-to-end biotech innovation
powerhouse that discovers, develops and makes
next- generation antibody-based medicines
available to patients. Through the addition of key
talent and the purposeful and strategic growth of
our capabilities, we have never been in a better
position to achieve this Vision.
Key to our ability to bring our medicines to
patients is commercialization. Over the past
few years, we have made tremendous progress
building and establishing this important capa-
bility, through a disciplined and integrated
approach.
• Our initial commercial footprint includes the
U.S. and Japan.
• We have experienced leaders and teams in place
across functions: medical affairs, marketing,
market access, insights and analytics as well as
field-based teams in the U.S. to ensure the best
possible experience for patients treated with
our medicines.
• We are focused on our most advanced medicine,
Tivdak, now successfully launched in the U.S.
for patients with recurrent/metastatic cervical
cancer, in collaboration with our partner Seagen.
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2021 Annual Report / Management’s Review / About Genmab
Chair’s Statement
Deirdre P. Connelly
Chair
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Table of
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Management’s
Review
Financial
Statements
Other
Information
Genmab has been able to maintain a
focus on its core purpose — to improve
the lives of patients — due to the
strength of the Company’s core values
and unique Company culture.
Dear Shareholder,
I am very proud of how Genmab has continued
to evolve over the past year while remaining
true to its core purpose of improving the lives of
patients through the creation and development
of innovative and differentiated antibody-based
medicines.
Core Values Supported by a Strong
Company Culture
Genmab has been able to maintain a focus on its
core purpose — to improve the lives of patients —
due to the strength of the Company’s core values
and unique Company culture. Our core values of
passion for innovation, determination, integrity
and working as one team are fully supported by a
culture where patients come first, and our ideas
and decisions are rooted in science. Genmab
also fosters a culture where colleagues respect
and celebrate differences and have the freedom
to speak up and empower one another. The
approval of Tivdak, a first for Genmab, would not
have been possible without our inspiring team
members who are dedicated to bringing our core
values and culture to life.
Commitment to Corporate Governance,
Sustainability and the Environment
Over the past two years we embarked upon
a more focused, business-driven corporate
social responsibility (CSR) strategy, including a
commitment to three United Nations Sustainable
Development Goals (SDGs) that are most closely
aligned with our business and that our teams
can positively impact. We also updated our CSR
governance structure.
As Genmab monitors new developments, regula-
tions and industry practices, we carefully consider
initiatives that could further enhance our oper-
ations as a sustainable and socially responsible
biotech. As such, Genmab is committed to help
reduce our environmental footprint. Motivated
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Other
Information
United Nations Sustainable
Development Goals (SDGs)
Genmab embraces its responsibility to
society and is pleased to join the effort to
progress the United Nations SDGs. In 2021 we
continued our commitment to the SDGs most
closely aligned with our business: Goals 3,
5 and 8. Refer to Genmab’s 2021 Corporate
Responsibility report for further details,
https://ir.genmab.com/static-files/3a18c1bc-
d3ee-401f-a721-c01704b23d98.
Goal 3 — Good Health and Well-Being:
Ensure healthy lives and promote well-being
for all at all ages
Goal 5 — Gender Equality: Achieve gender
equality and empower all women and girls
Goal 8 — Decent Work and Economic
Growth: Promote sustained, inclusive and
sustainable economic growth, full and produc-
tive employment and decent work for all
We also saw a change to our Board of Directors as Jonathan Peacock
stepped down due to increased responsibilities in connection with
his other board commitments. We thank Jonathan for his service
to Genmab and are in the process of identifying the best possible
candidate to fill this position on Genmab’s Board of Directors.
Evolution into a Fully Integrated Biotech
In anticipation of the potential regulatory approval and launch of
Genmab’s first medicine, Genmab took a focused and disciplined
approach to further build its teams and strengthen our capabil-
ities across the value chain. In 2021 we took the next step into
becoming a fully integrated end-to-end biotech with the launch and
co-promotion of our first U.S. FDA approved medicine.
On behalf of the Board of Directors, I would like to thank Genmab’s
dedicated team members, CEO Jan van de Winkel and the rest of
the senior leadership team for their inspiration and extraordinary
leader ship and all of our shareholders for their continued support.
Sincerely,
Deirdre P. Connelly
Board Chair
Chair’s Statement
by organizational growth and corresponding stakeholder focus
on climate and environment, society and governance (ESG),
Genmab evaluated its climate-related risks and opportunities.
I’m pleased to report that we have implemented the Task Force on
Climate-related Financial Disclosures (TCFD) recommendations,
which for the first time are part of this Annual Report. Additionally,
Genmab plans to calculate its carbon footprint and set climate
ambitions and targets. Genmab acknowledges its responsibility
to contribute to the Paris Agreement goals by fulfilling its duty
to reduce CO2 emissions. By strategically considering climate-
related financial risks and opportunities, Genmab is beginning a
journey to further protect long-term value for our operations and
build resilience.
As a company we also work diligently to continually improve our
guidelines and policies for corporate governance, always taking
into account trends in international and domestic requirements and
recommendations. This commitment to corporate governance, like
our dedication to CSR and the environment, is based on ethics and
integrity. Our commitment to corporate governance also impacts
our effort to strengthen the confidence that existing and future
shareholders, partners, team members and other stakeholders
have in Genmab. The role of shareholders and their interaction with
Genmab is important, and open and transparent communication is
paramount to maintain the confidence of Genmab’s shareholders.
As such, we continue to conduct regular outreach and engage with
our shareholders throughout the year and appreciate their open
and candid feedback.
Experienced Leadership
In February of 2021 we further strengthened our Executive
Management team with the appointment of Tahamtan Ahmadi as
Chief Medical Officer. Dr. Ahmadi joined Genmab in 2017 and prior
to his appointment served as Genmab’s Senior Vice President, Head
of Oncology. In this new role, Dr. Ahmadi leads research, discovery,
regulatory and medical activities.
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2021 Annual Report / Management’s Review / About Genmab
Letter from the CEO
Jan van de Winkel, Ph.D.
President &
Chief Executive Officer
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2021 Annual Report / Management’s Review / About Genmab
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Genmab has always been at the forefront
of innovation with all of our decisions
rooted in cutting-edge science and driven
by data. These values are reflected in
the status of our proprietary pipeline.
Dear Shareholder,
Over the course of the past few years we have
been working to strategically accelerate Genmab’s
evolution into an end-to-end, fully integrated
biotech innovation powerhouse. The initial goal
of this growth has been to achieve our ambitious
2025 Vision of having our own cancer treatment on
the market and a pipeline of knock-your-socks-off
antibodies. I am now extremely proud to say that,
with the events of 2021, we have moved closer to
realizing our vision and have further strengthened
our foundation as we continue to work toward
transforming the future of cancer treatment.
Rooted in Science
Genmab has always been at the forefront of
innovation with all of our decisions rooted in
cutting-edge science and driven by data. These
values are reflected in the status of our propri-
etary pipeline. Of key importance is the U.S. FDA’s
accelerated approval of Tivdak, which we are
developing with Seagen, making it the first and
only antibody-drug conjugate (ADC) approved for
the treatment of adult patients with recurrent or
metastatic cervical cancer with disease progres-
sion on or after first-line therapy. This approval is a
landmark event for Genmab and more importantly,
for patients with recurrent or metastatic cervical
cancer who have limited treatment options. We
and Seagen have a robust development plan for
Tivdak including in other solid tumors as well as
a randomized Phase 3 study, also announced
in 2021, which is intended to confirm Tivdak’s
benefit in recurrent or metastatic cervical cancer
and to support global regulatory applications.
Our investigational medicine in development with
AbbVie, epcoritamab, also made strides in 2021
with the first patients dosed in the first Phase 3
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Management’s
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Financial
Statements
Other
Information
Letter from the CEO
study for the bispecific antibody. Epcoritamab
data was presented at multiple prestigious confer-
ences and was also published in The Lancet.
We are very excited for 2022 as we anticipate not
only the start of additional Phase 3 studies but
also the filing of the first BLA for epcoritamab,
pending supportive feedback from the U.S. FDA.
In 2021 the first patient was dosed with
HexaBody- CD38 and an IND was submitted
for DuoBody- CD3xB7H4. The first preclinical
data for DuoBody- CD3xB7H4 was presented
in November at the Society for Immunotherapy
of Cancer’s (SITC) 36th Anniversary Annual
Meeting. Also presented at SITC were expansion
cohort data from the Phase 1/2 study of
DuoBody- PD-L1x4-1BB in solid tumors and initial
dose-escalation data from the Phase 1/2 study
of DuoBody-CD40x4-1BB in solid tumors, both
of which are in development with BioNTech. These
programs advanced as well with the first Phase 2
study of DuoBody-PD-L1x4-1BB and the initiation
of multiple expansion cohorts in the Phase 1/2
study of DuoBody-CD40x4-1BB.
Validation for Genmab’s Proprietary
Duobody Technology Platform
In addition to our own pipeline, Genmab’s inno-
vations were applied in the pipelines of global
pharmaceutical and biotechnology companies. In
particular, our DuoBody technology platform has
powered a variety of bispecific antibody therapies
in development. The most advanced of these,
amivantamab and teclistamab, are the result of
our DuoBody collaboration with Janssen. In 2021
amivantamab was approved, as RYBREVANT,
in the U.S., Europe and other markets for the
treatment of certain adult patients with NSCLC
with EGFR exon 20 insertion mutations. These
are the first regulatory approvals for a therapy
that was created using the DuoBody bispecific
technology platform. Subsequently, at the end
of 2021 Janssen submitted a BLA to the U.S. FDA
for teclistamab for the treatment of relapsed or
refractory multiple myeloma. Earlier in the year
the U.S. FDA granted Janssen Breakthrough
Therapy Designation (BTD) for teclistamab in this
indication. These events provided further valida-
tion for our DuoBody technology platform, which
also powers the majority of our own pipeline.
Genmab’s Response to the COVID-19
Pandemic
The COVID-19 pandemic continued to provide
challenges in 2021, though as in 2020 our
talented team not only met those challenges but
used them as opportunities to help the commu-
nities in which we operate. Within Genmab our
COVID-19 response team, led by me, developed
and implemented a host of precautionary
measures to help limit the impact of COVID-19 at
our workplaces.
Externally our teams sought out ways to provide
assistance to our local communities. Our U.S.
office was awarded the 2021 New Good Neighbor
Award by NJ Business Magazine in part due to
our support of numerous local relief efforts.
I am also extremely proud of the way our teams
used their specialized expertise to get involved
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2021 Annual Report / Management’s Review / About Genmab
Letter from the CEO
DKK
173B
2021 year-end market cap
DKK
8,482M
2021 revenue
DKK
5,464M
2021 operating expenses
77% invested in R&D
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Management’s
Review
Financial
Statements
Other
Information
As always, none of our achievements over the past year would
have been possible without the dedication and talent of our
unstoppable world-class team, the support of our Board of
Directors, the patients who participate in our clinical trials and
their families, the investigators who help us trailblaze innovations
and our shareholders who believe in our vision. Thank you all for
your continued support as we look forward to another inspiring year.
Sincerely yours,
Jan van de Winkel, Ph.D.
President & Chief Executive Officer
in COVID-19 testing in the Netherlands. In an unprecedented all
digital collaboration, Genmab and the Hubrecht Institute, along with
later additional partners, developed the STRIP-Robot (Systematic
Testing using Robotics and Innovation in Pandemics). This robot,
nicknamed “The Beast,” rapidly processes large numbers of
COVID-19 polymerase chain reaction (PCR) tests, outperforming
any other robot known, and at a lower cost per test than other
methods. The dramatically increased testing capacity is benefiting
our community in the Netherlands both now, during the COVID-19
pandemic, and in any future pandemics. This remarkable achieve-
ment was the winner of the prestigious Netherlands Prix Galien
Excellence COVID-19 Award. This award reflects both Genmab’s
position as an innovation powerhouse and our ability to use our
expertise to support our communities.
Working to Transform the Future of Cancer Treatment
I believe Genmab’s success can be judged based on the impact that
we have on patients’ lives. There are currently five medicines on the
market that incorporate our innovations. As we continue to grow
and our collaboration partners continue to leverage our technolo-
gies, we anticipate that additional medicines based on our science
will become available for even more patients. Our near-term vision
for the Company may evolve over time as Genmab itself grows and
evolves, but our passion for innovating antibody therapeutics with
the potential to improve and transform patients’ lives will always
remain at the heart of Genmab.
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2021 Annual Report / Management’s Review / About Genmab
Consolidated Key Figures
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Management’s
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Financial
Statements
Other
Information
2017*
2018*
2019
2020
2021
Revenue
(DKK million)
(DKK million)
Income Statement
Revenue
Research and development expense
Selling, general and administrative expense
Operating expenses
Operating profit
Net financial items
Net profit
Balance Sheet
Marketable securities
Cash and cash equivalents
Non-current assets
Assets
Shareholders’ equity
Share capital
Cash Flow Statement
Cash flow from operating activities
Cash flow from investing activities
Cash flow from financing activities
Investments in intangible and tangible assets
Financial Ratios
Basic net profit per share
Diluted net profit per share
Year-end share market price
Price/book value
Shareholders’ equity per share
Equity ratio
Shares outstanding
Average number of employees (FTE)**
Number of employees (FTE) at year-end
2,365
(874)
(147)
(1,021)
1,344
(280)
1,104
4,075
1,348
544
6,603
6,272
61
1,589
(668)
215
(89)
18.14
17.77
3,025
(1,431)
(214)
(1,645)
1,380
232
1,472
5,573
533
1,028
8,461
8,014
61
1,015
(1,778)
(71)
(478)
24.03
23.73
5,366
(2,386)
(342)
(2,728)
2,638
221
2,166
7,419
3,552
1,183
15,144
14,048
65
1,326
(1,983)
3,660
(111)
34.40
34.03
10,111
(3,137)
(661)
(3,798)
6,313
(409)
4,758
8,819
7,260
2,352
21,143
19,121
66
6,433
(2,351)
71
(307)
73.00
72.21
8,482
(4,181)
(1,283)
(5,464)
3,018
965
3,008
10,381
8,957
1,891
24,627
22,196
66
2,228
(961)
(420)
(252)
46.00
45.54
1,029.00
1,067.50
1,481.50
2,463.00
2,630.00
10.04
102.51
95%
8.19
130.32
95%
6.85
216.12
93%
8.50
289.71
90%
7.82
336.30
90%
61,185,674
61,497,571
65,074,502
65,545,748
65,718,456
235
257
313
377
471
548
656
781
1,022
1,212
* Prior period amounts have not been adjusted under the modified retrospective method to adopt IFRS 16 as of January 1, 2019. Further, 2017 and prior
period amounts have not been adjusted under the modified retrospective method to adopt IFRS 15 as of January 1, 2018, and in accordance with the
transitional provisions of IFRS 9, comparative figures for 2017 and prior have not been restated.
** Full-time equivalent
17
2021 Annual Report / Management’s Review / About Genmab
10,111
8,482
5,366
2,365
3,025
2017
2018
2019
2020
2021
Operating Expenses
(DKK million)
R&D
SG&A
1,645
214
1,431
1,021
147
874
5,464
1,283
4,181
3,798
661
3,137
2,728
342
2,386
2017
2018
2019
2020
2021
FTE at Year End
FTE
1,212
781
548
377
257
2017
2018
2019
2020
2021
2022 Outlook
(DKK million)
Revenue
Operating expenses
Operating profit
Revenue
2022
Guidance
2021
Actual Result
10,800–12,000
(7,200)–(7,800)
3,000–4,800
8,482
(5,464)
3,018
Operating Expenses
Genmab anticipates its 2022 operating expenses to be in the
range of DKK 7,200–7,800 million, compared to DKK 5,464 million
in 2021. The increase is driven by the advancement of Genmab’s
clinical programs, continued investment in research and develop-
ment, as well as building Genmab’s commercial organization and
broader organizational infrastructure.
Genmab expects its 2022 revenue to be in the range of DKK
10,800–12,000 million, compared to DKK 8,482 million in 2021.
Our revenue in 2021 was driven primarily by the continued strong
growth of DARZALEX net sales.
Operating Profit
We expect our operating profit to be in the range of DKK 3,000–
4,800 million in 2022, compared to DKK 3,018 million in 2021.
Genmab’s projected revenue for 2022 primarily consists of
DARZALEX royalties of DKK 7,700–8,500 million. Such royalties
are based on estimated DARZALEX 2022 net sales of USD
7.3–8.0 billion compared to actual net sales in 2021 of approxi-
mately USD 6.0 billion. Since the second quarter of 2020, Janssen
has reduced its royalty payments to Genmab by what it claims to
be Genmab’s share of Janssen’s royalty payments to Halozyme
Therapeutics, Inc. (Halozyme) in connection with subcutaneous
sales. Given the ongoing arbitration, Genmab has reflected this as
a reduction to estimated 2022 revenue. The remainder of Genmab’s
revenue consists of increasing royalties from TEPEZZA, Kesimpta
and RYBREVANT, reimbursement revenue, milestones for epcor-
itamab, other milestones and collaboration revenue related to
Tivdak commercialization efforts in the U.S. as part of our Seagen
collaboration.
Outlook: Risks and Assumptions
In addition to factors already mentioned, the estimates above
are subject to change due to numerous reasons including but not
limited to, the achievement of certain milestones associated with
Genmab’s collaboration agreements; ongoing binding arbitration
of two matters under Genmab’s license agreement with Janssen
relating to daratumumab; the timing and variation of development
activities (including activities carried out by Genmab’s collabora-
tion partners) and related income and costs; DARZALEX, Kesimpta,
TEPEZZA and RYBREVANT net sales and royalties paid to Genmab;
and currency exchange rates (the 2022 guidance assumes a USD/
DKK exchange rate of 6.4). The financial guidance assumes that
no significant new agreements are entered into during 2022 that
could materially affect the results. Additionally, the COVID-19
pandemic could potentially have a material adverse impact on
Genmab’s business and financial performance, including clinical
trials, projected regulatory approval timelines, supply chain and
revenues, and cause Genmab’s actual results to differ materially
from 2022 Guidance and Key 2022 Priorities in this annual report.
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
The global outbreak of COVID-19 may have long-term impacts on
the development, regulatory approval and commercialization of
Genmab’s investigational medicines and on net sales of approved
medicines created by Genmab and developed and marketed by
Genmab or Genmab’s collaboration partners. As the pandemic
continues, there may be an impact on Genmab’s business. Genmab
has an established COVID-19 response team, led by the CEO, that
closely monitors the evolving situation, develops and implements
precautionary measures to help limit the impact of COVID-19 at the
workplace and on our communities and ensures business conti-
nuity. Genmab is also actively monitoring the potential impact on
Key 2022 Priorities and assessing the situation on an ongoing basis
in close contact with clinical trial sites, physicians and contract
research organizations to evaluate the impact and challenges
posed by the COVID-19 situation and manage them accordingly.
The full extent and nature of the impact of the COVID-19 pandemic
and related containment measures on Genmab’s business and
financial performance is uncertain as the situation continues. The
factors discussed above, as well as other factors which are currently
unforeseeable, may result in further and other unforeseen material
adverse impacts on Genmab’s business and financial performance,
including on the sales of Tivdak and on the net sales of DARZALEX,
Kesimpta, TEPEZZA and RYBREVANT by Genmab’s partners and
on Genmab’s royalties, collaboration revenue and milestone
revenue therefrom.
18
2021 Annual Report / Management’s Review / About Genmab
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Business Model
At Genmab we have built a profitable and successful biotech that
creates value for all our stakeholders.
Our Strengths
and Differentiators
World-class
antibody biology knowledge
and deep insight into
disease targets
Discovery and development
engine with proprietary
technologies that allow us to
build a world-class pipeline
In-house expertise
with a solid track record of
building successful strategic
partnerships
Robust pipeline
of potential best-in-class and
first-in-class therapies
Experienced,
diverse management team
Building a Fully Integrated Biotech Innovation Powerhouse
Team
Flexible and adaptive
infrastructure
Translational
Research and Data
Science
Key to accelerating devel-
opment and ensuring the
right therapies get to
the right patients
Research
Track record of success
and investing for
tomorrow
Development
Scaling up capabilities to
expand from early- to late-
stage development
Commercialization
Building the next step
in our evolution
Enabling Functions: Supporting growth and managing risk
Strong
Financials
With growing recurring
revenues and focused
investment
Collaboration
Across ecosystem
of pharma, biotech and
academia to drive our
business forward
The Value We Create
for Stakeholders
Patients
>280
Investors
7%
ongoing clinical trials
with antibodies created
using Genmab’s inno-
vations and technology
Increase in market
capitalization
in 2021
Our People
Collaborations
>10
recent research
agreements and collab-
orations in place across
the whole ecosystem
of pharma, biotech and
academia
>430
number of new full-
time jobs created
in 2021; voted one
of Denmark’s most
attractive employers
by young engineer-
ing/natural sciences
professionals per
Universum comprehen-
sive career survey
Our Purpose
To improve the lives of patients with
cancer by creating and developing
innovative and differentiated
antibody medicines
Our Vision
By 2025, our own product has
transformed cancer treatment, and
we have a pipeline of knock-your-
socks-off antibodies
Our Values
• Passion for innovation
• Determination — being the best at
what we do
• Integrity — we do the right thing
• We work as one team and respect
each other
Our Strategy
• Focus on core competence
• Turn science into medicine
• Build a profitable and
successful biotech
Where We Operate
• Copenhagen, Denmark
• Utrecht, the Netherlands
• Princeton, United States
• Tokyo, Japan
19
2021 Annual Report / Management’s Review / About Genmab
Our Strategy
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Business Strategy
Priorities in 2021
Priorities for 2022
Build a profitable and successful biotech
― Maintain a flexible and capital-efficient model
― Maximize relationships with partners
― Retain ownership of select products
Become leading integrated innovation powerhouse
Operational commercialization model in U.S. and Japan
Further strengthen solid financial foundation
Further scale organization aligned with growing product
portfolio and brand needs
― Further scale organization aligned with differentiated
antibody product portfolio growth and future launches
― Use solid financial base to grow and broaden antibody
product and technology portfolio
Link to Risk
Refer to “Risk related to
Finances”
Focus on core competence
― Identify the best disease targets
― Develop unique first-in-class or best-in-class
antibodies
― Develop next-generation technologies
Build world-class differentiated product pipeline
DuoBody-PD-L1x4 1BB1 — expansion cohort data
DuoBody-CD40x4-1BB1 — dose escalation data
Tisotumab vedotin2 — data in other tumor indication
Earlier-stage products — progress and expand innovative
product pipeline3
Growth and development of differentiated early-stage
product candidates
― DuoBody-PD-L1x4-1BB & DuoBody-CD40x4-1BB
– Data from clinical expansion cohorts to progress to
next steps
― Expand and advance proprietary clinical product portfolio
Refer to “Risk related to
Business and Products”
Turn science into medicine
― Create differentiated antibody therapeutics
with significant commercial potential
Bring our own medicines to patients
Tisotumab vedotin — U.S. FDA decision on BLA and
progress to market
Tisotumab vedotin — Japanese New Drug Application
(JNDA) submission in cervical cancer4
Epcoritamab5 — acceleration and maximization of
development program by advancing expansion cohort and
initiating additional Phase 3 trials3
Refer to “Risk related to
Strategic Collaborations”
Broad and rapid development of late-stage clinical pipeline
and further build U.S. country organization
― Epcoritamab
– Expand clinical development program with multiple
Phase 3 trials initiated and submission of first BLA
(subject to supportive FDA feedback)
― Tivdak
– Establish Tivdak as a clear choice for 2L+ r/m cervical
cancer patients
– Broaden clinical development program including
Phase 2 evaluation of combination therapy in earlier
line treatment for cervical cancer and other solid tumors
CSR Strategy
Progress in 2021
Priorities for 2022
Link to Risk
Commitment to our business-driven CSR
strategy, which focuses on four main areas:
1. Employee well-being, including health, safety
and development
2. Ethics and compliance in relation to preclinical
and clinical studies
3. Business ethics and transparency
4. Environment, including waste management
and recycling
Continue to advance Genmab’s CSR strategy and activities
focused on four main areas
Further integrate ESG into our strategic planning and risk
management processes, monitor ESG matters of relevance
to our business operations and establish clear goals to
measure our performance
Use Sustainability Accounting Standards Board (SASB)
and TCFD framework and follow its guidelines to disclose
critical measurements
― Continue strong commitment to being a responsible and
sustainable biotech
― Look for opportunities to further integrate ESG into our
strategic planning and risk management processes
― Monitor ESG matters of relevance to our business
operations
― Establish clear goals to measure our performance
― Establish climate ambitions, targets, and emissions
reductions and integrate climate-related financial risks
into Genmab’s Enterprise Risk Management (ERM)
program
Please refer to the risks
included in Genmab’s 2021
Corporate Responsibility
report, https://ir.genmab.
com/static-files/3a18c1bc-
d3ee-401f-a721-
c01704b23d98
1. Co-development with BioNTech; 2. Co-development with Seagen; 3. Only partial criteria met for goal in 2021. Further progress anticipated in 2022; 4. Potential JNDA filing timeline postponed to include Phase 3 innovaTV 301 data; 5. Co-development with AbbVie
20
2021 Annual Report / Management’s Review / About Genmab
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Our Business
22 Research and Development Capabilities
23 Antibody Discovery and Development
24 Products and Technologies
It’s very rewarding to see that a “hey, that’s interesting …” observation some
12 years ago sparked a chain of events culminating in this year’s approval of the
first DuoBody product, Janssen’s RYBREVANT. This novel treatment option for lung
cancer patients was only made possible by the shared desire of the many teams
involved to understand antibody science at the deepest level, in combination with
an inherent drive to innovate discovery and development practices.
Aran Labrijn, Director, Antibody Format Discovery Lead, the Netherlands
21
2021 Annual Report / Management’s Review / Our Business
Research and Development Capabilities
companies and a world-class research university, this space
provides a bright, open and collaborative atmosphere to enable the
Genmab team to continue to innovate and find new ways to help
patients. In order to accommodate Genmab’s growth, we will occupy
the majority of the new “Accelerator” multi-tenant building that is
connected directly to the Genmab R&D Center. It is being built to
achieve the same BREEAM Excellent high sustainability standard.
Completion of this building, which will contain both offices and
laboratories, is expected by early 2023.
Sustainable and State-of-the-Art Facilities:
United States
Genmab opened its new U.S. facility in 2020. This new space,
which was modeled on the open and collaborative spirit of the
R&D Center in Utrecht, includes both offices and laboratories.
The opening of the U.S. translational research laboratories allows
Genmab to expand its translational preclinical and clinical drug
development research expertise and is part of the strategic growth
of the Company. As with the construction and design of our Utrecht
facilities, our U.S. office and laboratories were designed and built
with sustainability in mind. Our facility in New Jersey meets the
requirements for LEED (Leadership in Energy and Environmental
Design) Gold certification for sustainable design features. In
addition, 75% of the construction waste created when building
out the facility was recycled, rather than being sent to a landfill.
As Genmab continues to grow our geographical footprint we will
do so with minimal impact to the environment and sustainability
as key areas of focus.
Inspired by Nature
At Genmab, we are inspired by nature and understand how
antibodies work. We are deeply knowledgeable about antibody
biology and our scientists exploit this expertise to create and
develop differentiated investigational medicines. We utilize a
sophisticated and highly automated process to efficiently generate,
select, produce and evaluate human antibody-based products.
Our research and development teams have established a fully
integrated R&D enterprise and streamlined process to coordinate
the activities of antibody product discovery, preclinical testing,
manufacturing, clinical trial design and execution and regulatory
submissions across Genmab’s international operations. Through our
expertise in antibody drug development, we pioneer technologies
that allow us to create differentiated and potentially first-in-class
or best-in-class investigational medicines with the potential to
improve patients’ lives. Our antibody expertise has enabled us to
create our cutting-edge technology platforms: DuoBody, HexaBody,
DuoHexaBody and HexElect. We are also transforming ourselves
by building on our world-class research in antibodies to expand
our capabilities beyond the lab. We have expanded our scientific
focus to use data science and artificial intelligence to discover
new targets and biomarkers and bolster our in-depth translational
medicine laboratory capabilities. All of this is in an effort to get
the right medicine to the right patient at the right dose.
Sustainable and State-of-the-Art Facilities:
The Netherlands
Genmab’s discovery and preclinical research is conducted at our
Research and Development Center in Utrecht, the Netherlands.
The building is one of the first BREEAM (Building Research
Establishment Environmental Assessment Method) Excellent
laboratory buildings in the Netherlands. The R&D Center houses
state-of-the-art laboratories including an advanced robotics lab,
a modern auditorium, science café, and innovative brainstorm and
meeting rooms. Located in close proximity to other life sciences
22
2021 Annual Report / Management’s Review / Our Business
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
The opening of the U.S.
translational research
laboratories allows Genmab
to expand its translational
preclinical and clinical drug
development research
expertise and is part of
the strategic growth of the
company.
Antibody Discovery
and Development
We are experts in antibody discovery and
development. Our appreciation for, and under-
standing of, the power of the human immune
system gives us a unique perspective on how to
respond to the constant challenges of oncology
drug development. In 2021 we entered a new
chapter with the commercialization and launch
of our first medicine.
If approved by regulatory
authorities, new medicine launch
and commercialization
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Target discovery,
antibody identification
and purification
1
13
i z a t ion
o m m e r c i a l
C
2
Antibody format research
to maximize safety
and efficacy
Analyze clinical trials and apply
for marketing approval with
regulatory authorities
Phase 2/3 development
to explore efficacy
Phase 1/2 development
to explore safety and
preliminary efficacy
12
11
10
esearch
al R
ic
n
i
l
C
h
c
r
a
e
s
e
R
D
i
s
c
o
v
e
r
y
&
Preclinic
l
a
n
o
i
t
a
l
s
n
h
Researc
al
Tra
3
4
5
Biochemical analysis
Investigate efficacy
and mechanism of
action in laboratory
tests (in vitro)
Screen for efficacy in
animal models (in vivo)
Test antibody
binding to human and
animal tissue and conduct
preclinical toxicity experiments
9
6
Submission of protocol
to regulatory authorities
to start clinical trials
8
7
Antibody production
for clinical development
Biomarker and
translational research
23
2021 Annual Report / Management’s Review / Our Business
Products and Technologies
Pipeline
At the end of 2021, Genmab’s proprietary pipeline of investigational
medicines, where we are responsible for at least 50% of development,
consisted of six* antibodies in clinical development including
Genmab’s first U.S. FDA approved medicine, Tivdak, which Genmab
is co-developing and co-promoting in the U.S. with Seagen. In
addition to our own pipeline, there are also multiple investigational
medicines in development by global pharmaceutical and biotechnology
companies, including four approved medicines that incorporate
Genmab technology and innovations. Beyond the antibodies in clinical
development, our pipeline also includes around 20 in-house and
partnered preclinical programs. An overview of the development status
of each of our investigational medicines is provided in the following
sections. Detailed descriptions of dosing, efficacy and safety data from
certain clinical trials have been disclosed in company announcements
and media releases published via the Nasdaq Copenhagen stock
exchange and may also be found in Genmab’s filings with the U.S.
Securities and Exchange Commission (SEC). Additional information is
available on Genmab’s website, www.genmab.com. The information
accessible through our website is not part of and is not incorporated by
reference herein.
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Genmab’s Proprietary Pipeline
(≥50% Genmab ownership)*
Approved Medicine
Tivdak (tisotumab vedotin)
Clinical Stage Investigational Medicines
Epcoritamab
DuoBody-PD-L1x4-1BB (GEN1046)
DuoBody-CD40x4-1BB (GEN1042)
DuoHexaBody-CD37 (GEN3009)
HexaBody-CD38 (GEN3014)
Programs Incorporating Genmab’s
Innovations and Technology in Phase 2
Development or Later
Approved Medicines
DARZALEX/DARZALEX FASPRO (daratumumab/
daratumumab and hyaluronidase-fihj, Janssen)
RYBREVANT (amivantamab, Janssen)
Kesimpta (ofatumumab, Novartis)
TEPEZZA (teprotumumab, Horizon)
≥ Phase 2 Clinical Stage Investigational
Medicines
Teclistamab (Janssen)
Inclacumab (Global Blood Therapeutics)
Talquetamab (Janssen)
Mim8 (Novo Nordisk)
Camidanlumab tesirine (ADC Therapeutics)
PRV-015 (Provention Bio)
Lu AF82422 (Lundbeck)
Additional investigational medicines in
early-stage clinical development.
~20 Preclinical Programs in-house and partnered
* In September 2021 we decided that we would not further advance the development of HexaBody-DR5/DR5 and,
in agreement with our partner AbbVie, DuoBody-CD3x5T4. Regarding HexaBody-DR5/DR5, preliminary activity
was shown, but the narrow therapeutic index did not support further development. For DuoBody-CD3x5T4, the
maximum tolerated dose was reached at a dose level that was below the one expected to be active.
* Tisotumab vedotin co-development with Seagen; epcoritamab and DuoHexaBody-CD37 co-development with AbbVie; DuoBody-
PD-L1x4-1BB and DuoBody-CD40x4-1BB co-development with BioNTech; Genmab is developing HexaBody-CD38 in an
exclusive worldwide license and option agreement with Janssen.
24
2021 Annual Report / Management’s Review / Our Business
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Products and Technologies
Genmab’s Proprietary1 Pipeline
Product
Target
Developed By
Disease Indications
Most Advanced Development Phase
Preclinical
1
1/2
2
3
Approved
Tivdak (tisotumab vedotin-tftv)
TF
Co-development: Genmab/Seagen
Cervical cancer2
Tisotumab vedotin
Ovarian cancer
Solid tumors
Epcoritamab
CD3, CD20
Co-development: Genmab/AbbVie
Relapsed/refractory diffuse large B-cell lymphoma (DLBCL)
B-cell non-Hodgkin lympoma (NHL)
B-cell NHL (combo)
Relapsed/refractory chronic lymphocytic leukemia (CLL)
DuoBody-PD-L 1x4-1BB (GEN1046)
PD-L1, 4-18B
Co-development: Genmab/BioNTech
Non-small cell lung cancer (NSCLC)
DuoBody-CD40x4-1 BB (GEN1042)
CD40, 4-18B
Co-development: Genmab/BioNTech
Solid tumors
DuoHexaBody-CD37 (GEN3009)
HexaBody-CD38 (GEN3014)
CD37
CD38
Co-development: Genmab/AbbVie
Hematologic malignancies
Genmab3
Hematologic malignancies
Solid tumors
1. Investigational medicines where Genmab has ≥50% ownership, in co-development with partners as indicated.
2. Refer to local country prescribing information for precise indication and safety information.
3. Genmab is developing HexaBody-CD38 in an exclusive worldwide license and option agreement with Janssen.
25
2021 Annual Report / Management’s Review / Our Business
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Products and Technologies
Programs Incorporating Genmab’s Innovations and Technology4
Approved Medicines
Product
Developed & Marketed By
Disease Indications
Most Advanced Development Phase
Preclinical
1
1/2
2
3
Approved
DARZALEX (daratumumab) & DARZALEX FASPRO
(daratumumab and hyaluronidase-fihj)
Janssen Biotech Inc.
(Tiered royalties to Genmab on net global sales)
Multiple myeloma (MM)2
AL Amyloidosis2
Non-MM blood cancers
Daratumumab
Kesimpta (ofatumurnab)
TEPEZZA (teprotumumab-trbw)
Novartis (Royalties to Genmab on net global sales)
Relapsing multiple sclerosis2
Horizon Therapeutics (under sublicense from
Roche, royalties to Genmab on net global sales)
Thyroid eye disease2
RYBREVANT (amivantamab-vmjw)
Janssen (Royalties to Genmab on net sales)
NSCLC2
Amivantamab
≥Phase 2 Clinical Stage Programs
Advanced or metastatic gastric or
esophageal cancer
Product
Technology
Developed By
Disease Indications
Most Advanced Development Phase
Teclistamab (JNJ-64007957)
lnclacumab
Talquetamab (JNJ-64407564)
Camidanlumab tesirine (ADCT-301)
Mim8
PRV-015 (AMG 714)
Lu AF82422
DuoBody
UltiMAb
DuoBody
UltiMAb
DuoBody
UltiMAb
UltiMAb
Janssen
Relapsed or refractory MM
Global Blood Therapeutics
Vaso-occlusive crises (VOC) in sickle cell disease
Janssen
Relapsed or refractory MM
ADC Therapeutics
Relapsed/refractory Hodgkin lymphoma
Novo Nordisk
Provention Bio
Lundbeck
Healthy volunteers & hemophilia A
Celiac disease
Multiple system atrophy
Preclinical
1
1/2
2
3
Approved
(BLA submitted)
4. Investigational medicines created by Genmab or that incorporate Genmab’s innovations and technology, under development and where relevant commercialized by a third party.
26
2021 Annual Report / Management’s Review / Our Business
Genmab’s
Proprietary Pipeline
Programs where Genmab has ≥50% ownership.
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
27
2021 Annual Report / Management’s Review / Our Business
Genmab’s Proprietary Pipeline
Tivdak
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
First and Only U.S. FDA Approved ADC for Recurrent or Metastatic Cervical Cancer
• An ADC directed to tissue factor
(TF), a protein highly prevalent in
solid tumors, including cervical
cancer, which is associated with
poor prognosis
• Accelerated approval granted by
the U.S. FDA for Tivdak, the first and
only approved ADC for the treatment
of adult patients with recurrent or
metastatic cervical cancer with disease
progression on or after chemotherapy
• The approval was based on data from
the innovaTV 204 (NCT03438396)
Phase 2 single-arm clinical study
evaluating tisotumab vedotin as
monotherapy in patients with
previously treated recurrent or
metastatic cervical cancer; potential
JNDA filing timeline postponed
to include Phase 3 innovaTV 301
(NCT04697628) data
Tivdak is an ADC composed of Genmab’s human
monoclonal antibody directed to TF and Seagen’s
ADC technology that utilizes a protease-cleavable
linker that covalently attaches the microtubule-
disrupting agent monomethyl auristatin E to the
antibody. Genmab used technology licensed from
Medarex to generate the TF antibody forming part
of Tivdak. Tivdak is the first and only U.S. FDA
approved ADC for the treatment of adult patients
with recurrent or metastatic cervical cancer with
disease progression on or after chemotherapy.
Tivdak is being co-developed by Genmab and
Seagen. Under a joint commercialization agree-
ment, Genmab will co-promote Tivdak in the U.S.
and lead commercial operational activities in
Japan. Seagen will lead commercial operational
activities in the U.S., Europe and China with a
50:50 cost and profit split in those markets. In any
other markets, Seagen will commercialize Tivdak
and Genmab will receive royalties based on a
percentage of aggregate net sales ranging from
the mid-teens to the mid- twenties. The companies
will continue the practice of joint decision making
on the worldwide development and commer-
cialization strategy for Tivdak. The companies
have a broad clinical development program for
Tivdak, including other solid tumors and a confir-
matory Phase 3 study in recurrent or metastatic
cervical cancer.
• In addition to the Phase 3 study in
recurrent or metastatic cervical cancer,
multiple Phase 2 clinical studies in
other solid tumors are ongoing
• Co-developed and co-promoted in the
U.S. in collaboration with Seagen
Please consult the U.S. Prescribing Information
for Tivdak for the labeled indication and safety
information, including the boxed warning.
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2021 Annual Report / Management’s Review / Our Business
Genmab’s Proprietary Pipeline
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Updates from First Quarter to Third Quarter
• September: The U.S. FDA granted accelerated approval for
Tivdak. The BLA seeking accelerated approval of Tivdak was
submitted in February 2021 and accepted for review in April
2021. The approval was based on data from the innovaTV 204
Phase 2 study.
• September: Genmab and Seagen presented interim data from
two cohorts of the Phase 1b/2 innovaTV 205 (NCT03786081)
study of tisotumab vedotin in recurrent or metastatic cervical
cancer at the European Society for Medical Oncology Virtual
Congress 2021 as a featured mini oral presentation.
• May: Data from the innovaTV 204 study was published in The
Lancet Oncology.
• January: The Phase 3 innovaTV 301 study of tisotumab vedotin
versus chemotherapy in recurrent or metastatic cervical cancer
was announced.
Tisotumab Vedotin Collaboration with Seagen
In September 2010, Genmab and Seagen entered into an ADC collaboration, with a commercial license and collaboration
agreement executed in October 2011. Under the agreement, Genmab was granted rights to utilize Seagen’s ADC technology with
its human monoclonal TF antibody. Seagen was granted rights to exercise a co-development and co-commercialization option
at the end of Phase 1 clinical development for tisotumab vedotin. In August 2017, Seagen exercised this option. In October
2020, Genmab and Seagen entered into a joint commercialization agreement. Genmab will co-promote Tivdak in the U.S., and
will lead commercial operational activities and book sales in Japan, while Seagen will lead operational commercial activities in
the U.S., Europe and China with a 50:50 cost and profit split in those markets. In any other markets, Seagen will be responsible
for commercializing Tivdak and Genmab will receive royalties based on a percentage of aggregate net sales ranging from the
mid-teens to the mid-twenties. The companies will continue the practice of joint decision making on the worldwide development
and commercialization strategy for Tivdak.
Key Ongoing Clinical Trials
Disease
Stage
Development Phase
Preclinical
1
1/2
2
3
Cervical Cancer
Recurrent or metastatic
Recurrent or metastatic
innovaTV 301
innovaTV 204
Recurrent or Stage IVB (Combo and Mono)
innovaTV 205
Ovarian Cancer
PIatinum resistant
Solid Tumors
Locally advanced or metastatic
innovaTV 208
innovaTV 207
Locally advanced or metastatic (Japan)
innovaTV 206
Locally advanced or metastatic
innovaTV 201
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2021 Annual Report / Management’s Review / Our Business
About Cervical Cancer1
Cancer that originates in the cells lining the cervix.
4th most frequently diagnosed and 4th most deadly
cancer in women worldwide.2
In developing regions, ranked 2nd in incidence and
mortality in women.2
In 2021, an estimated 14,480 new cases of invasive
cervical cancer will be diagnosed, and 4,290 women
will die from the disease in the U.S.3
Up to 16% of women initially present with metastatic
cervical cancer, and those who present with earlier-stage
disease may experience a recurrence following treatment.3,4
Among women who present with earlier stage disease,
15%–61% will go on to develop metastatic cervical
cancer, most commonly within the first two years following
completion of therapy.5
5-year survival rate for women in the U.S. and Japan with
recurrent or metastatic cervical cancer is only 17.6% and
19.5%, respectively, highlighting an urgent unmet need
for effective treatment.3
1. General statistics include all stages of cervical cancer.
2. Bray F, Ferlay J, Soerjomataram I, Siegel RL, Torre LA, Jemal A. Global cancer
statistics 2018: GLOBOCAN estimates of incidence and mortality worldwide
for 36 cancers in 185 countries. CA: a cancer journal for clinicians.
2018;68(6):394-424.
3. Institute NC. SEER Cancer Stat Facts: Cervical Cancer. 2020. https://seer.
cancer.gov/statfacts/html/cervix.html. Accessed July 27, 2020.
4. McLachlan J, Boussios S, Okines A, et al. The impact of systemic therapy
beyond first-line treatment for advanced cervical cancer. Clinical oncology
(Royal College of Radiologists (Great Britain)). 2017;29(3):153-160.
5. Pfaendler KS, Tewari KS. Changing paradigms in the systemic treatment of
advanced cervical cancer. Am J Gynecol. 2016:214(1):22-30.
Genmab’s Proprietary Pipeline
Epcoritamab
(DuoBody-CD3xCD20)
Potential Best-in-class
Investigational Medicine
• Proprietary bispecific antibody
created with Genmab’s DuoBody
technology platform
• Five ongoing clinical studies
across different settings and
histologies, including a Phase 3
study (NCT04628494) in
relapsed/refractory diffuse large
B-cell lymphoma (DLBCL) with
more studies in planning
• Co-developed in collaboration
with AbbVie
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2021 Annual Report / Management’s Review / Our Business
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Epcoritamab is a proprietary bispecific antibody created using Genmab’s DuoBody
technology platform. Epcoritamab targets CD3, which is expressed on T-cells, and
CD20, a clinically well-validated target on malignant B-cells. Genmab used technology
licensed from Medarex to generate the CD20 antibody forming part of epcoritamab.
Epcoritamab is being co-developed by Genmab and AbbVie. The first Phase 3
clinical study of epcoritamab in relapsed/refractory DLBCL is ongoing. In addition,
Phase 1/2 clinical studies in B-cell non-Hodgkin lymphoma (B-NHL) including chronic
lymphocytic leukemia (CLL, NCT04623541) and in combination with standard of care
therapies for B-NHL (NCT04663347) are ongoing.
Fourth Quarter Update
• December: Multiple presentations at the 63rd American Society of Hematology
(ASH) Virtual Annual Meeting, including preliminary results in CLL and in combina-
tion with rituximab, cyclophosphamide, doxorubicin, vincristine, and prednisone
in patients with newly diagnosed DLBCL and in combination with rituximab and
lenalidomide for patients with relapsed or refractory follicular lymphoma (FL).
Updates from First Quarter to Third Quarter
• September: Data from the Phase 1/2 EPCORE™ NHL-1 (NCT03625037) study
was published in The Lancet, “Dose escalation of subcutaneous epcoritamab in
patients with relapsed or refractory B-cell non-Hodgkin lymphoma: an open-label,
phase 1/2 study.”
• June: Updated dose escalation data, including progression free survival, from the
Phase 1/2 EPCORE NHL-1 study of epcoritamab in patients with relapsed or refrac-
tory B-NHL was presented during an oral session at the International Conference
on Malignant Lymphoma and poster sessions at the American Society of Clinical
Oncology Annual Meeting and the European Hematology Association (EHA) Congress.
• February: “Epcoritamab induces potent anti-tumor activity against malignant
B-cells from patients with DLBCL, FL and MCL, irrespective of prior CD20 monoclonal
antibody treatment” was published in Blood Cancer Journal.
• January: The first patient was dosed in the Phase 3 study of SC epcoritamab versus
investigator’s choice of chemotherapy in patients with relapsed or refractory DLBCL.
This triggered a DKK 245 million (USD 40 million) milestone to Genmab under the
collaboration with AbbVie.
Genmab’s Proprietary Pipeline
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Key Ongoing Clinical Trials
Disease
Stage
DLBCL
Relapsed/Refractory
B-cell Lymphoma
Relapsed/Progressive/Refractory
Relapsed/Progressive/Refractory (Japan)
Development Phase
1
Preclinical
EPCORE DLBCL-1
EPCORE NHL-1
EPCORE NHL-3
B-cell NHL
Previously Untreated/Relapsed/Refractory (Combo)
EPCORE NHL-2
CLL
Relapsed/Refractory
EPCORE CLL-1
About Diffuse Large B-cell Lymphoma
1/2
2
3
Epcoritamab Collaboration with AbbVie
In June 2020, Genmab entered into a broad collaboration agreement to jointly develop and commercialize three existing
Genmab bispecific antibody programs, including epcoritamab. Should epcoritamab receive regulatory approval in the future,
the companies will share commercial responsibilities for epcoritamab in the U.S. and Japan, with AbbVie responsible for further
global commercialization. Genmab will be the principal for net sales in the U.S. and Japan, and receive tiered royalties on
remaining global net sales.
Under the terms of the agreement, Genmab received a USD 750 million upfront payment with the potential for Genmab to receive
up to USD 3.15 billion in additional development, regulatory and net sales milestone revenue for all programs, as well as tiered
royalties between 22% and 26% on net sales for epcoritamab outside the U.S. and Japan. Except for these royalty-bearing net
sales, the parties share in pre-tax profits from the sale of medicines on a 50:50 basis. Included in these potential milestones are
up to USD 1.15 billion in milestone payments related to clinical development and commercial success across the three bispecific
antibody programs originally included in the agreement, one of which was subsequently stopped. Genmab and AbbVie split 50:50
the development costs related to epcoritamab. Refer to “AbbVie Collaboration Agreement” for more details.
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2021 Annual Report / Management’s Review / Our Business
63.9%
5-year survival rate2
• DLBCL is an aggressive NHL that develops from B cells1
• DLBCL accounts for ~1/3 of all NHLs2,3
• Prognosis for relapsed or refractory DLBCL patients is
poor, especially for those with high-risk factors4
• For most patients with refractory DLBCL there are no
curative treatment options4
1. Lymphoma Research Foundation. Diffuse Large B-Cell Lymphoma.
https://lymphoma.org/aboutlymphoma/nhl/dlbcl/. Accessed
December 1, 2021.
2. National Institutes of Health. SEER Cancer Stat Facts: DLBCL.
https://seer.cancer.gov/statfacts/html/dlbcl.html. Accessed
December 1, 2021.
3. Gouveia GR, et al. Rev Bras Hematol Hemoter. 2012; 34(6): 447–451.
4. Crump, Michael, et al. “Outcomes in Refractory Diffuse Large B-Cell
Lymphoma: Results from the International SCHOLAR-1 Study.” Blood,
American Society of Hematology, 19 Oct. 2017, www.ncbi.nlm.nih.
gov/pmc/articles/PMC5649550/.
Genmab’s Proprietary Pipeline
DuoBody-
PD-L1x4-1BB
(GEN1046)
DuoBody-
CD40x4-1BB
(GEN1042)
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Potential First-in-Class Bispecific
Next-generation Checkpoint
Immunotherapy
• Bispecific antibody-based investigational
medicine created with Genmab’s DuoBody
technology platform
• Clinical studies in solid tumors ongoing,
including a Phase 2 study in non-small cell
lung cancer (NSCLC, NCT05117242)
• Co-developed in collaboration with BioNTech
DuoBody-PD-L1x4-1BB (GEN1046) is a propri-
etary bispecific antibody, jointly owned by
Genmab and BioNTech, created using Genmab’s
DuoBody technology platform. It is being co-
developed by Genmab and BioNTech under an
agreement in which the companies share all
costs and profits for DuoBody-PD-L1x4-1BB
on a 50:50 basis. DuoBody-PD-L1x4-1BB
is designed to induce an antitumor immune
response by simultaneous and complemen-
tary PD-L1 blockade and conditional 4-1BB
stimulation using inert DuoBody antibody
format. Three clinical studies in solid tumors
are ongoing including a Phase 2 study of
DuoBody-PD-L1x4-1BB as monotherapy and in
combination with pembrolizumab in patients
with recurrent metastatic NSCLC.
Fourth Quarter Updates
• November: The first patient was dosed in the
first Phase 2 study of DuoBody-PD-L1x4-1BB
as monotherapy and in combination with
pembrolizumab in patients with relapsed
metastatic NSCLC after treatment failure with
standard of care therapy with an immune
checkpoint inhibitor.
• November: A poster on expansion cohort
data from the Phase 1/2 study of DuoBody-
PD-L1x4-1BB in solid tumors was presented at
the SITC 36th Annual Meeting.
Potential First-in-Class Bispecific
Agonistic Antibody
• Bispecific antibody created with Genmab’s
DuoBody technology platform
• Phase 1/2 clinical study (NCT04083599) in
solid tumors ongoing
• Co-developed in collaboration with BioNTech
DuoBody-CD40x4-1BB (GEN1042) is a propri-
etary bispecific antibody, jointly owned by
Genmab and BioNTech, created using Genmab’s
DuoBody technology platform. It is being co-de-
veloped by Genmab and BioNTech under an
agreement in which the companies share all
costs and profits for DuoBody-CD40x4-1BB on
a 50:50 basis. CD40 and 4-1BB were selected
as targets to enhance both dendritic cells (DC)
and antigen-dependent T-cell activation, using
an inert DuoBody format. A Phase 1/2 clinical
study of DuoBody-CD40x4-1BB in solid tumors
is ongoing.
Fourth Quarter Update
• November: Initial dose-escalation data from
the Phase 1/2 study of DuoBody-CD40x4-1BB
in solid tumors was presented as a rapid-oral
presentation at the SITC 36th Annual Meeting.
Updates from First Quarter to Third
Quarter
• September: The ongoing Phase 1/2 study
was updated to include multiple expansion
cohorts including in combination with
pembrolizumab in first-line NSCLC, in first-
line head and neck squamous cell carcinoma
(HNSCC) and in first-line melanoma and
in combination with pembrolizumab and
chemotherapy in first-line HNSCC and in first-
line pancreatic ductal adenocarcinoma.
• April/May: Preclinical data was presented at
the American Association for Cancer Research
Annual Meeting.
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2021 Annual Report / Management’s Review / Our Business
Genmab’s Proprietary Pipeline
DuoHexaBody-
CD37
(GEN3009)
HexaBody-
CD38
(GEN3014)
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
First DuoHexaBody Program in
Clinical Development
• Antibody-based investigational medicine
created with Genmab’s DuoHexaBody
technology platform
• Phase 1/2 clinical study (NCT04358458) in
hematologic malignancies ongoing
• Co-developed in collaboration with AbbVie
DuoHexaBody-CD37 (GEN3009) is a bispecific
antibody that targets two non-overlapping
CD37 epitopes, created with Genmab’s propri-
etary DuoHexaBody technology platform. The
DuoHexaBody technology platform combines
the dual targeting of our DuoBody technology
platform with the enhanced potency of our
HexaBody technology platform, creating
bispecific antibodies with target-mediated
enhanced hexamerization. DuoHexaBody-CD37
is being co-developed by Genmab and AbbVie.
A Phase 1/2 clinical study in hematologic malig-
nancies, including an arm in combination with
epcoritamab, is ongoing.
HexaBody Molecule with Potential in
Hematological Malignancies
• Proprietary antibody therapeutic created with
Genmab’s HexaBody technology platform
• Phase 1/2 clinical study (NCT04824794) in
hematological malignancies ongoing
• Developed in an exclusive worldwide license
and option agreement with Janssen
HexaBody-CD38 (GEN3014) is a human CD38
monoclonal antibody-based investigational
medicine that incorporates our HexaBody tech-
nology. In preclinical models of hematological
malignancies, as presented at ASH in December
2019, HexaBody-CD38 demonstrated enhanced
CDC and had shown potent anti-tumor activity.
In June 2019, Genmab entered into an exclusive
worldwide license and option agreement
with Janssen to develop and commercialize
HexaBody-CD38. A Phase 1/2 clinical study in
hematologic malignancies is ongoing.
Update from First Quarter to Third
Quarter
• March: First patient dosed in first-in-human
study of HexaBody-CD38.
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2021 Annual Report / Management’s Review / Our Business
Approved Medicines Incorporating
Genmab’s Innovations
and Technology
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
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2021 Annual Report / Management’s Review / Our Business
Approved Medicines Incorporating Genmab’s Innovations and Technology
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
In addition to Genmab’s own pipeline of
investigational medicines, our innovations and
proprietary technology platforms are applied
in the pipelines of global pharmaceutical and
biotechnology companies. These companies
are running clinical development programs
with antibodies created by Genmab or created
using Genmab’s DuoBody bispecific antibody
technology platform. The programs run from
Phase 1 development to approved medicines.
The information in this section includes those
medicines that have been approved by regulatory
agencies in certain territories. Under the agreements
for these medicines Genmab is entitled to certain
potential milestones and royalties.
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2021 Annual Report / Management’s Review / Our Business
Approved Medicines Incorporating Genmab’s Innovations and Technology
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Redefining the Treatment of Multiple Myeloma
• First-in-class human CD38 monoclonal antibody
• Developed and commercialized by Janssen under an exclusive
worldwide license from Genmab
• Intravenous (IV) formulation approved in combination with
other therapies for frontline and for relapsed/refractory
multiple myeloma in territories including the U.S., Europe and
Japan and as monotherapy for heavily pretreated or double-
refractory multiple myeloma in territories including the U.S.
and Europe
• First and only SC CD38-directed antibody approved in
territories including the U.S., Europe and Japan for the
treatment of certain multiple myeloma indications, known as
DARZALEX FASPRO in the U.S., and DARZALEX SC in Europe
• SC daratumumab is the first and only approved therapy for
AL amyloidosis in the U.S., Europe and Japan
• 2021 net sales of DARZALEX by Janssen were USD
6,023 million
DARZALEX is a human monoclonal antibody that
binds with high affinity to the CD38 molecule,
which is highly expressed on the surface of
multiple myeloma cells and is also expressed
by AL amyloidosis plasma cells. Genmab used
technology licensed from Medarex to generate
the CD38 antibody forming part of daratumumab.
Daratumumab is being developed by Janssen
under an exclusive worldwide license from
Genmab to develop, manufacture and commer-
cialize daratumumab. Refer to “Daratumumab
Collaboration with Janssen” for more informa-
tion. Under the terms of the agreement, Genmab
is entitled to double digit royalties between
12% and 20%. Daratumumab (marketed as
DARZALEX for IV administration and as DARZALEX
FASPRO in the United States and as DARZALEX
SC in Europe for SC administration) is approved
in certain territories for the treatment of adult
patients with certain multiple myeloma indica-
tions and is the only approved therapy in the
U.S., Europe and Japan for the treatment of adult
patients with AL amyloidosis.
Please consult the U.S. Prescribing Information
and the European Summary of Product
Characteristics for DARZALEX and DARZALEX
SC and the U.S. Prescribing Information for
DARZALEX FASPRO for the labeled indication and
safety information.
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Approved Medicines Incorporating Genmab’s Innovations and Technology
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
About Multiple Myeloma
Blood Cancer
A blood cancer that occurs when malignant
plasma cells grow uncontrollably in bone
marrow and for which there is no cure
at present
About Amyloidosis
Rare
A very rare disease caused by the buildup
of an abnormal protein called amyloid,
which is made by plasma cells, in the tissues
or organs
55.6%
5-year survival rate
in the U.S.1
12–15%
of multiple myeloma
patients develop
AL amyloidosis4
34,920
people estimated newly diagnosed and 12,410 estimated to have
died from multiple myeloma in the U.S. in 20211
176,404
people estimated diagnosed and 117,077 estimated to have died
from multiple myeloma worldwide in 20212
4,000
approximate number of new cases diagnosed annually, making
AL amyloidosis the most common type of amyloidosis in the U.S.3
1. Surveillance, Epidemiology and End Results Program (SEER). Cancer Stat Facts: Myeloma. Available at http://seer.cancer.gov/statfacts/html/mulmy.html. Accessed December 1, 2021.
2. World Health Organization. Available at https://gco.iarc.fr/today/data/factsheets/cancers/35-Multiple-myeloma-fact-sheet.pdf. Accessed December 1, 2021.
3. Cancer.net https://www.cancer.net/cancer-types/amyloidosis/statistics. Accessed December 1, 2021.
4. Cancer.net Guide to Amyloidosis. https://www.cancer.net/cancer-types/amyloidosis/risk-factors. Accessed December 1, 2021.
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2021 Annual Report / Management’s Review / Our Business
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Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Fourth Quarter Updates
• December: Janssen received approval from the U.S. FDA for daratumumab SC in
combination with carfilzomib and dexamethasone (Kd) for the treatment of relapsed
or refractory multiple myeloma. The approval was based on the Phase 2 PLEIADES
study (MMY2040, NCT03412565).
• December: Janssen presented multiple abstracts at the ASH Annual Meeting,
including daratumumab in combination with Janssen bispecific investigational
medicines, teclistamab and talquetamab.
• October: Janssen received approval in China for daratumumab in combination
with bortezomib, cyclophosphamide and dexamethasone (VCd) for the treatment
of adult patients with newly diagnosed systemic AL amyloidosis. The approval
was based on the Phase 3 ANDROMEDA (AMY3001/NCT03201965) clinical study.
Janssen received additional approvals in 2021 based on the Phase 3 ANDROMEDA
study in the U.S., Europe and Japan.
Updates from First Quarter to Third Quarter
• July: Janssen was granted an approval by the U.S. FDA for daratumumab SC in
combination with pomalidomide and dexamethasone (Pd) for the treatment of adult
patients with multiple myeloma who have received one prior therapy containing
a proteasome inhibitor (PI) and lenalidomide and were lenalidomide refractory,
or who have received at least two prior therapies that included lenalidomide and
a PI and have demonstrated disease progression on or after the last therapy. The
approval was based on the APOLLO (MMY3013/NCT03180736) clinical study.
Janssen received additional approvals in 2021 based on the Phase 3 APOLLO study
in Europe and Japan.
• June: Overall survival results from Janssen’s Phase 3 MAIA (MMY3008/
NCT02252172) study of daratumumab in combination with lenalidomide and
dexamethasone (D-Rd) versus Rd alone in patients with newly diagnosed multiple
myeloma who were ineligible for autologous stem cell transplant were presented
during the late-breaking oral session at EHA.
• April: Janssen received approval in China based on the Phase 3 LEPUS (MMY3009,
NCT03234972) study of daratumumab in combination with bortezomib and
dexamethasone in Chinese patients with relapsed or refractory multiple myeloma.
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2021 Annual Report / Management’s Review / Our Business
Daratumumab Collaboration with Janssen
In 2012, Genmab and Janssen entered a global
license and development agreement for dara-
tumumab. Genmab received an upfront license
fee of USD 55 million, and Johnson & Johnson
Development Corporation (JJDC) invested USD
80 million to subscribe for 5.4 million new Genmab
shares. Genmab could also be entitled to up to
USD 1.015 billion in development, regulatory and
sales milestones, in addition to tiered double digit
royalties between 12% and 20%. To date Genmab
has recorded USD 910 million in milestone payments
from Janssen and could be entitled to receive up
to USD 105 million in further payments if certain
additional milestones are met. The following royalty
tiers apply for net sales in a calendar year: 12%
on net sales up to and including USD 750 million;
13% on net sales above USD 750 million and up
to and including USD 1.5 billion; 16% on net sales
above USD 1.5 billion and up to and including USD
2.0 billion; 18% on net sales above USD 2.0 billion
and up to and including USD 3.0 billion; and 20%
on net sales exceeding USD 3.0 billion. Janssen is
fully responsible for developing and commercializing
daratumumab and all costs associated therewith.
In September 2020, Genmab commenced binding
arbitration of two matters arising under its license
agreement with Janssen relating to daratumumab.
Under the license agreement, Genmab is, among
other things, entitled to royalties from Janssen on
sales of daratumumab (marketed as DARZALEX
for IV administration and as DARZALEX FASPRO in
the United States and DARZALEX SC in Europe for
SC administration). The arbitration first is to settle
whether Genmab is required to share in Janssen’s
royalty payments to Halozyme for the Halozyme
enzyme technology used in the SC formulation
of daratumumab. The royalties Janssen pays to
Halozyme represent a mid-single digit percentage
rate of SC daratumumab sales. Janssen has started
reducing its royalty payments to Genmab by what
it claims to be Genmab’s share of Janssen’s royalty
payments to Halozyme beginning in the second
quarter of 2020 and has continued to do so through
December 31, 2021. Given the ongoing arbitration,
Genmab has reflected this reduction in its royalty
revenues each quarter. To date, the impact to
royalties was estimated to be DKK 501 million (2021:
DKK 421 million, 2020: DKK 80 million).The arbitra-
tion is also to settle whether Janssen’s obligation to
pay royalties on sales of licensed product extends, in
each applicable country, until the expiration or inval-
idation of the last-to-expire relevant Genmab-owned
patent or the last-to-expire relevant Janssen-owned
patent covering the product, as further defined and
described in the license agreement. Please refer to
“Legal Matter — Janssen Binding Arbitration.”
Approved Medicines Incorporating Genmab’s Innovations and Technology
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Approved in RMS
• Human CD20 monoclonal
antibody developed and
commercialized by Novartis
under a license agreement with
Genmab
• Approved in territories including
the U.S., EU and Japan for
treatment of relapsing forms
of multiple sclerosis (RMS)
in adults
• First B-cell therapy that can be
self-administered by patients at
home using the Sensoready®
autoinjector pen
Kesimpta is a human monoclonal antibody that targets an epitope on the CD20
molecule encompassing parts of the small and large extracellular loops. Genmab
used technology licensed from Medarex to generate the CD20 antibody forming part
of Kesimpta. Kesimpta was approved by the U.S. FDA in August 2020 and the EC in
March 2021 for the treatment of RMS in adults. Kesimpta is the first B-cell therapy
that can be self-administered by patients at home using the Sensoready autoinjector
pen, once monthly after starting therapy. Additional studies with RMS patients
are ongoing. Kesimpta is being developed and marketed worldwide by Novartis
under a license agreement between Genmab and Novartis. Refer to “Ofatumumab
Collaboration with Novartis” for more information. Under the terms of the agreement,
Genmab is entitled to 10% royalties on net sales of Kesimpta.
Please consult the U.S. Prescribing Information and the European Summary
of Product Characteristics for the labeled indication and safety information
for Kesimpta.
Updates from First Quarter to Third Quarter
• March: The EC granted Novartis marketing authorization for the use of Kesimpta
in the treatment of RMS in adults with active disease defined by clinical or imaging
features. This was preceded in January 2021 by a positive opinion from the
Committee for Medicinal Products for Human Use of the European Medicines Agency
recommending marketing authorization in the same indication.
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About Multiple Sclerosis
Chronic
Chronic disorder of the central nervous system that disrupts the normal functioning of the brain, optic nerves and
spinal cord through inflammation and tissue loss
2.3M
people affected worldwide1
85%
of MS cases are relapsing
remitting multiple sclerosis
(RRMS), characterized by
unpredictable recurrent
attacks1
1. Healthline https://www.healthline.com/health/multiple-sclerosis/facts-statistics-infographic. Accessed December 1, 2021.
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Ofatumumab Collaboration with
Novartis
Genmab and GSK entered a co-development
and collaboration agreement for ofatumumab
in 2006. The full rights to ofatumumab were
transferred from GSK to Novartis in 2015.
Novartis is now fully responsible for the
development and commercialization of ofatu-
mumab in all potential indications, including
autoimmune diseases. Genmab is entitled
to a 10% royalty payment of net sales for
non-cancer treatments. In 2020 subcutaneous
ofatumumab was approved by the U.S. FDA, as
Kesimpta, for the treatment of RMS in adults.
Ofatumumab was also previously approved
as Arzerra for certain CLL indications. In 2019,
the marketing authorization for Arzerra was
withdrawn in the EU and several other terri-
tories. In August 2020, Genmab announced
that Novartis would transition Arzerra to an
oncology access program for CLL patients in
the U.S. Genmab recognized USD 30 million
lump sum from Novartis as payment for lost
potential royalties. Ofatumumab is no longer
in development for CLL.
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First U.S. FDA approved medicine
for the treatment of Thyroid Eye
Disease (TED)
• Developed and commercialized
by Horizon for TED
• First and only U.S. FDA approved
medicine for the treatment
of TED
• Also being explored in diffuse
cutaneous systemic sclerosis
(dcSSC)
Teprotumumab, approved by the U.S. FDA in January 2020 under the trade name
TEPEZZA, is a human monoclonal antibody that targets the Insulin-like Growth
Factor 1 Receptor (IGF-1R), a well-validated target. Genmab used technology licensed
from Medarex to generate the IGF-1R antibody forming part of teprotumumab.
TEPEZZA is being developed and is commercialized by Horizon. The antibody was
created by Genmab under a collaboration with Roche and development and commer-
cialization of TEPEZZA is now being conducted by Horizon under a sublicense from
Roche. Under the terms of Genmab’s agreement with Roche, Genmab will receive
mid-single digit royalties on sales of TEPEZZA. In December 2020, Horizon announced
that there was a supply disruption related to the production of TEPEZZA due to U.S.
government-mandated COVID-19 vaccine production requirements. Subsequently,
Horizon announced that it had resumed supplying the market beginning in April 2021,
ending the supply disruption.
Please consult the U.S. Prescribing Information for the labeled indication and safety
information for TEPEZZA.
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Approved Medicines Incorporating Genmab’s Innovations and Technology
About TED
Rare, progressive and vision-threatening
autoimmune disease1
Associated with thyroid disease, affecting the
ocular and orbital tissues1
50%
Misalignment of the eyes
(strabismus) and double
vision (diplopia) are
reported in about 50%
of people with TED2
Annual incidence is approximately
3 out of 100,000
men and
16 out of 100,000
women3
1. Barrio-Barrio J, et al. Graves’ Ophthalmopathy: VISA versus EUGOGO Classification, Assessment, and Management. Journal of Ophthalmopathy. 2015;2015:1-16.
2. Horizon Therapeutics, Understanding Thyroid Eye Disease (TED), https://www.thyroideyes.com/thyroid-eye-disease-symptoms/. Accessed December 1, 2021.
3. Bahn RS. Graves’ ophthalmopathy. N Engl J Med. 2010;362:726-738.
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First Regulatory Approvals for a
DuoBody-based Medicine
• Part of Genmab and Janssen
DuoBody research and license
agreement
• First U.S. FDA and European
Commission (EC) approved
medicine created using
Genmab’s proprietary DuoBody
technology platform
• Under the agreement with
Janssen, Genmab will receive
milestones and royalties on net
sales of RYBREVANT
In July 2021, Genmab entered into a collaboration with Janssen to create and
develop bispecific antibodies using Genmab’s DuoBody technology platform.
See “Amivantamab Collaboration with Janssen” for more information. The most
advanced of these, Janssen’s RYBREVANT is a fully human bispecific antibody that
targets epidermal growth factor receptor (EGFR) and Met, two validated cancer
targets. In 2021, Janssen received approvals from in the U.S., Europe and other
markets for RYBREVANT for the treatment of certain adult patients with NSCLC
with EGFR exon 20 insertion mutations. These are the first regulatory approvals
for a therapy that was created using Genmab’s proprietary DuoBody bispecific
technology platform.
Please consult the U.S. Prescribing Information and the European Summary
of Product Characteristics for RYBREVANT for the labeled indication and safety
information.
Fourth Quarter Update
• December: Janssen received conditional marketing authorization in Europe for the
treatment of adult patients with advanced NSCLC with activating EGFR exon 20
insertion mutations, after failure of platinum-based therapy.
Update from First Quarter to Third Quarter
• May: Janssen was granted U.S. FDA approval for the use of RYBREVANT for the
treatment of adult patients with locally advanced or metastatic NSCLC with EGFR
exon 20 insertion mutations whose disease has progressed on or after platinum-
based chemotherapy.
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Approved Medicines Incorporating Genmab’s Innovations and Technology
About Non-small Cell Lung Cancer
Mutations
Exon 20 insertion mutations
are the 3rd most prevalent
activating EGFR mutation1,8
80–85%
Worldwide lung cancer
is one of the most
common cancers, with
NSCLC making up
80% to 85%1,2,3
10–15%
EGFR mutations are
found in 10% to 15%
of patients with
NSCLC1,4,5,6,7
8%
Patients with this profile
have a real-world 5-year
overall survival rate
of 8% in the frontline
setting1,9
1. “RYBREVANT™ (amivantamab-vmjw) Receives FDA Approval as the First Targeted Treatment for Patients with Non-Small Cell Lung Cancer with EGFR Exon 20 Insertion Mutations”
https://www.janssen.com/rybrevant-amivantamab-vmjw-receives-fda-approval-first-targeted-treatment-patients-non-small-cell.
2. The World Health Organization. Cancer. https://www.who.int/news-room/fact-sheets/detail/cancer. Accessed December 1, 2021.
3. American Cancer Society. What is Lung Cancer? https://www.cancer.org/content/cancer/en/cancer/lung-cancer/about/what-is.html. Accessed December 1, 2021.
4. Bauml, JM, et al. Underdiagnosis of EGFR Exon 20 Insertion Mutation Variants: Estimates from NGS-based Real World Datasets. WCLC Poster #3399. January 2021.
5. Riess JW, Gandara DR, Frampton GM, et al. Diverse EGFR exon 20 insertions and co-occurring molecular alterations identified by comprehensive genomic profiling of NSCLC. J Thorac
Oncol. 2018;13(10):1560-1568. doi:10.1016/j.jtho.2018.06.019.
6. Pennell, NA et al. A phase II trial pf adjuvant erlotinib in patients with resected epidermal growth factor receptor-mutant non-small cell lung cancer. J Clin Oncol. 37:97-104.
7. Burnett H, Emich H, Carroll C, Stapleton N, Mahadevia P, Li T. Epidemiological and clinical burden of EGFR exon 20 insertion in advanced non-small cell lung cancer: a systematic
literature review. Abstract presented at: World Conference on Lung Cancer Annual Meeting; January 29, 2021; Singapore.
8. Arcila, M. et al. EGFR exon 20 insertion mutations in lung adenocarcinomas: prevalence, molecular heterogeneity, and clinicopathologic characteristics. Molecular Cancer Therapeutics.
2013; Feb; 12(2):220-9.
9. Girard N, BazhenovaL, MinchomA, OuSI, GadgeelSM, Trigo J, et al. Comparative clinical outcomes for patients with NSCLC harboring EGFR exon 20 insertion mutations and common
EGFR mutations. Abstract presented at: World Conference on Lung Cancer Annual Meeting; January 29, 2021; Singapore.
Amivantamab Collaboration with
Janssen
In July 2012, Genmab entered into a collab-
oration with Janssen to create and develop
bispecific antibodies using Genmab’s
DuoBody technology platform. Refer to
“DuoBody Collaboration with Janssen”
for more information. The two antibody
libraries used to produce amivantamab
were both generated by Genmab. In
collaboration with Janssen, the antibody
pair used to create amivantamab was
selected. Janssen is leading the develop-
ment of amivantamab. In May 2021,
Janssen received approval from the U.S.
FDA for amivantamab, as RYBREVANT, for
the treatment of adult patients with locally
advanced or metastatic NSCLC with EGFR
exon 20 insertion mutations whose disease
has progressed on or after platinum-based
chemotherapy. RYBREVANT has also been
approved in the EU and other markets.
These are the first regulatory approvals for
a therapy that was created using Genmab’s
proprietary DuoBody bispecific technology
platform. Under our agreement with
Janssen, Genmab will receive milestones
and royalties between 8% and 10% on net
sales of RYBREVANT.
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Preclinical Programs
• Broad preclinical pipeline of approximately
20 programs
• Preclinical pipeline includes both partnered
antibody-based products and in-house
programs based on our proprietary
technologies and antibodies
• Multiple new INDs expected to be submitted
over coming years
• Genmab has entered multiple strategic
collaborations to support the expansion of
our innovative pipeline
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Our preclinical pipeline includes immune effector function
enhanced antibodies developed with our HexaBody technology
platform and bispecific antibodies created with our DuoBody
technology platform. We are also working with our partners
to generate additional new antibody-based product concepts.
A number of the preclinical programs are carried out in cooperation
with our collaboration partners.
Updates from First Quarter to Third Quarter
• July: First CTA submitted for DuoBody-CD3xB7H4.
• May: Genmab and Bolt Biotherapeutics, Inc. (Bolt) entered
into an oncology research and development collaboration.
The companies will evaluate Genmab antibodies and bispecific
antibody engineering technologies in combination with Bolt’s
proprietary Boltbody™ immune-stimulating antibody conjugate
(ISAC) technology platform, with the goal of discovering and
developing next-generation, immune-stimulatory, antibody-based
conjugate therapeutics for the treatment of cancer. The research
collaboration will evaluate multiple bispecific ISAC concepts
to identify up to three clinical candidates for development.
Genmab will fund the research, along with the preclinical and
clinical development of these candidates through clinical proof
of concept. Under the terms of the agreement, Genmab paid Bolt
an upfront payment of USD 10 million and made a USD 15 million
equity investment in Bolt in June 2021. Bolt is eligible to receive
total potential milestone payments of up to USD 285 million per
therapeutic candidate exclusively developed and commercialized
by Genmab, along with tiered royalties. Genmab will fully fund
preclinical and early clinical development of all candidates.
If a candidate is co-developed, development costs will be split
50:50 between the two companies, and the companies will be
solely responsible for commercialization costs in their respective
territories and shall pay each other royalties on product sales.
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Our Proprietary Technology Platform Suite
Platform
DuoBody
HexaBody
DuoHexaBody
HexElect
Principle
Applications
Bispecific antibodies
Dual-targeting:
Target-mediated enhanced
hexamerization
• Recruitment (e.g., T cells)
• Tumor heterogeneity
Enhanced potency:
• Complement-dependent
cytotoxicity (CDC)
• Target clustering, outside-in
signaling, apoptosis
Bispecific antibodies with
target-mediated enhanced
hexamerization
Dual-targeting + enhanced potency:
• CDC
• Target clustering, outside-in
signaling, apoptosis
Two co-dependent anti-
bodies with target-mediated
enhanced hexamerization
Dual-targeting + enhanced potency
and selectivity:
• Co-dependent unlocking of potency
• New target space, previously
inaccessible
Antibody Technologies
Antibodies are Y-shaped proteins that play a central role in immunity
against bacteria and viruses (also known as pathogens). As we
develop immunity, our bodies generate antibodies that bind to
pathogen structures (known as antigens), which are specific to the
pathogen. Once bound, the antibodies attract other parts of the
immune system to eliminate the pathogen. In modern medicine, we
have learned how to create and develop specific antibodies against
antigens associated with diseased human cells for use in the treatment
of diseases such as cancer and autoimmune disease. Genmab uses
several types of technologies to create antibodies to treat disease
and has developed proprietary antibody technologies including
the DuoBody, HexaBody, DuoHexaBody and HexElect technology
platforms. Information about these technologies can be found in the
following sections and at www.genmab.com/research-innovation/
antibody-technology-platforms/.
We also use or license several other technologies to generate diverse
libraries of high quality, functional antibodies. We also use or license
technologies to increase the potency of some of our antibody
therapeutics on a product-by-product basis, including ADCs. ADCs
are antibodies with potent cytotoxic agents coupled to them. By
using antibodies that recognize specific targets on tumor cells, these
cytotoxic agents are preferentially delivered to the tumor cells.
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The innovative DuoBody technology platform generates bispecific
antibodies via a fast, versatile and broadly applicable process called
controlled Fab-arm exchange. With only minimal protein engineering, the
technology allows the binding arms of two distinct monoclonal antibodies
to exchange, combining into one stable bispecific antibody, thereby
retaining regular immunoglobulin structure and function. The DuoBody
technology platform is also highly suitable for high throughput generation,
screening and discovery of bispecific antibodies in the final format.
Antibody Technologies
DuoBody Technology Platform
Innovative Technology for Bispecific
Antibody Therapeutics
• Bispecific antibody technology
platform
• Potential in cancer, autoimmune,
infectious, cardiovascular, central
nervous system diseases and
hemophilia
• Commercial collaborations with
AbbVie, Janssen and BioNTech
among others, plus multiple research
collaborations
• First regulatory approvals for a
medicine that was created using the
DuoBody technology platform —
Janssen’s RYBREVANT
• First Genmab-sponsored Phase 3
study for an investigational medicine
that was created using the DuoBody
technology platform — epcoritamab
(co-development with AbbVie)
The DuoBody technology platform is Genmab’s innovative
platform for the discovery and development of bispecific anti-
bodies. Bispecific antibodies bind to two different epitopes
(or “docking” sites) either on the same or on different targets
(also known as dual-targeting). Dual-targeting may improve
binding specificity and enhance therapeutic efficacy or bring
two different cells together (for example, engaging a T cell to kill
a tumor cell). Bispecific antibodies generated with the DuoBody
technology platform can be used for the development of ther-
apeutics for diseases such as cancer, autoimmune, infectious,
cardiovascular, central nervous system diseases and hemo-
philia. DuoBody molecules combine the benefits of bispecificity
with the strengths of conventional antibodies, which allows
DuoBody molecules to be administered and dosed the same way
as other antibody therapeutics. Genmab’s DuoBody technology
platform generates bispecific antibodies via a versatile and
broadly applicable process which is easily performed at high
throughput, standard bench, as well as at commercial manufac-
turing scale. Genmab uses the DuoBody technology platform to
create its own bispecific antibody programs and the technology
is also available for licensing. Genmab has numerous alliances
for the DuoBody technology platform including commercial
collaborations with AbbVie, Janssen, Novo Nordisk, BioNTech
and Immatics.
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Antibody Technologies
DuoBody
Collaborations
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Advancing Our Pipeline
AbbVie
On June 10, 2020, Genmab entered into a broad
oncology collaboration agreement with AbbVie to
jointly develop and commercialize epcoritamab
(DuoBody-CD3xCD20), DuoHexaBody-CD37
and DuoBody-CD3x5T4. For epcoritamab, the
companies will share commercial responsibilities
in the U.S. and Japan, with AbbVie responsible
for further global commercialization. Genmab
will be the principal for net sales in the U.S. and
Japan, and receive tiered royalties on remaining
global sales outside of these territories.
For DuoHexaBody-CD37 and any investiga-
tional medicines developed as a result of the
companies’ discovery research collaboration,
Genmab and AbbVie will share responsibilities
for global development and commercialization
in the U.S. and Japan. Genmab retains the right
to co-commercialize these potential medicines,
along with AbbVie, outside of the U.S. and Japan.
Under the terms of the agreement, Genmab
received a USD 750 million upfront payment
from AbbVie with the potential for Genmab
to receive up to USD 3.15 billion in additional
development, regulatory and sales milestone
payments for all programs, as well as tiered
royalties between 22% and 26% on net sales for
epcoritamab outside the U.S. and Japan. Except
for these royalty-bearing sales, the parties share
in pre-tax profits from the sale of medicines on
a 50:50 basis. Included in these potential mile-
stones are up to USD 1.15 billion in payments
related to clinical development and commercial
success across the three bispecific antibody
programs originally included in the agreement,
one of which was subsequently stopped. Genmab
and AbbVie split 50:50 the development costs
related to epcoritamab, DuoHexaBody-CD37 and
DuoBody-CD3x5T4.
In September 2021 we, along with AbbVie,
decided that the data did not support the further
development of DuoBody-CD3x5T4.
BioNTech
In May 2015, Genmab entered an agreement
with BioNTech to jointly research, develop and
commercialize bispecific antibody-based inves-
tigational medicines using Genmab’s DuoBody
technology platform. Under the terms of the
agreement, BioNTech will provide proprietary
antibodies against key immunomodulatory
targets, while Genmab provides proprietary anti-
bodies and access to its DuoBody technology
platform. Genmab paid an upfront fee of USD
10 million to BioNTech. If the companies jointly
select any antibody-based product candidates
for clinical development, development costs
and product ownership will be shared equally
going forward. If one of the companies does not
wish to move an antibody product forward, the
other company is entitled to continue devel-
oping it on predetermined licensing terms. The
agreement also includes provisions which will
allow the parties to opt out of joint development
at key points. Genmab and BioNTech selected
two antibody products for clinical development,
DuoBody-CD40x4-1BB (GEN1042) and DuoBody-
PD-L1x4-1BB (GEN1046), both of which are now in
clinical trials.
Our Innovative Technology in Action
Janssen
In July 2012, Genmab entered into a collaboration
with Janssen to create and develop bispecific anti-
bodies using our DuoBody technology platform.
Under this original agreement, Janssen had the
right to use the DuoBody technology platform to
create panels of bispecific antibodies (up to 10
DuoBody programs) to multiple disease target
combinations. Genmab received an upfront
payment of USD 3.5 million from Janssen and will
potentially be entitled to milestone and license
payments of up to approximately USD 175 million,
as well as royalties on sales for each commercial-
ized DuoBody medicine.
Under the terms of a December 2013 amendment,
Janssen was entitled to work on up to 10 addi-
tional programs. Genmab received an initial
payment of USD 2 million from Janssen. Under
the terms of the original agreement, for each of
the additional programs that Janssen successfully
initiates, develops and commercializes, Genmab
will potentially be entitled to receive average
milestone and license payments of approximately
USD 191 million. In addition, Genmab will be
entitled to royalties on sales of any commer-
cialized medicines. All research work is funded
by Janssen.
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development. Genmab will fund the research,
along with the preclinical and clinical develop-
ment of these candidates through clinical proof
of concept. Under the terms of the agreement,
Genmab paid Bolt an upfront payment of USD
10 million and made a USD 15 million equity
investment in Bolt. Bolt is eligible to receive
total potential milestone payments of up to USD
285 million per therapeutic candidate exclusively
developed and commercialized by Genmab, along
with tiered royalties. If a candidate is co-devel-
oped, development costs will be split 50:50
between the two companies, and the companies
will be solely responsible for commercialization
costs in their respective territories and shall pay
each other royalties on product sales.
Antibody Technologies
Janssen has exercised 14 licenses under this
collaboration, not all of which are active, and
no further options remain for use by Janssen.
As of December 31, 2021, four DuoBody-based
investigational medicines created under this
collaboration were in the clinic. One of these,
RYBREVANT, is the first medicine created using
the DuoBody technology platform to receive regu-
latory approval and a BLA for a second, Janssen’s
teclistamab, has been submitted to the U.S. FDA.
Novo Nordisk A/S
In August 2015, Genmab entered an agreement
to grant Novo Nordisk commercial licenses to use
the DuoBody technology platform to create and
develop bispecific antibody candidates for two
therapeutic programs. The bispecific antibodies
will target a disease area outside of cancer ther-
apeutics. After an initial period of exclusivity
for both target combinations, Novo Nordisk has
extended exclusivity of the commercial license for
one target combination in 2018, now in clinical
development as Mim8. Under the exclusive
license agreement, Genmab is entitled to potential
development, regulatory and sales milestones of
up to approximately USD 250 million. In addition,
Genmab will be entitled to single digit royalties
on sales of any commercialized medicines. In
December 2017, the collaboration was expanded
with a new agreement for up to an additional five
potential target pair combinations, which may be
reserved on either an exclusive or non-exclusive
basis, and three commercial license options. This
agreement contained similar termination provi-
sions as the initial agreement.
Collaborations Across the Pharma
and Biotech Ecosystem
Immatics
In July 2018, Genmab entered into a research
collaboration and exclusive license agreement
with Immatics to discover and develop next-gen-
eration bispecific immunotherapies to target
multiple cancer indications. Genmab received
an exclusive license to three proprietary targets
from Immatics, with an option to license up
to two additional targets at predetermined
economics. Under the terms of the agreement,
Genmab paid Immatics an upfront fee of USD
54 million and Immatics is eligible to receive up
to USD 550 million in development, regulatory
and commercial milestone payments for each
antibody product, as well as tiered royalties on
net sales.
Bolt Biotherapeutics
In the second quarter of 2021, Genmab and Bolt
entered into an oncology research and develop-
ment collaboration. The companies will evaluate
Genmab antibodies and bispecific antibody
engineering technologies in combination with
Bolt’s proprietary Boltbody™ immune-stimu-
lating antibody conjugate (ISAC) technology
platform, with the goal of discovering and devel-
oping next-generation, immune-stimulatory,
antibody-based conjugate therapeutics for the
treatment of cancer. The research collaboration
will evaluate multiple bispecific ISAC concepts
to identify up to three clinical candidates for
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Antibody Technologies
HexaBody Technology
Platform
Creating Differentiated
Therapeutics
• Enhanced potency antibody
technology platform
• Broadly applicable technology that
builds on natural antibody biology
• HexaBody-based investigational
medicine in clinical development;
HexaBody-CD38
The HexaBody technology platform is a
proprietary Genmab technology that is
designed to increase the potency of anti-
bodies. The HexaBody technology platform
builds on natural biology and strengthens
the natural killing ability of antibodies while
retaining regular structure and specificity.
The technology allows for the creation of
potent therapeutics by inducing antibody
hexamer formation (clusters of six antibodies)
after binding to their target antigen on the
cell surface. We have used the HexaBody
technology platform to generate antibodies
with enhanced complement-mediated killing,
allowing antibodies with limited or absent killing capacity to
be transformed into potent, cytotoxic antibodies. In addition
to complement-mediated killing, the clustering of membrane
receptors by the HexaBody technology platform can lead to
subsequent outside-in signaling leading to cell death. The
HexaBody technology platform creates opportunities to explore
new antibody-based product candidates to repurpose drug can-
didates unsuccessful in previous clinical trials due to insufficient
potency and may provide a useful strategy in product life cycle
management. The HexaBody technology platform is broadly
applicable and can be combined with Genmab’s DuoBody tech-
nology platform (DuoHexaBody technology platform) as well as
other antibody technologies. The technology has the potential to
enhance antibody therapeutics for a broad range of applications
in diseases such as cancer and infectious diseases. Genmab is
using the HexaBody technology platform for its own antibody
programs and the technology is also available for licensing.
In addition to multiple HexaBody research collaborations with
other companies, Genmab has entered into an exclusive world-
wide license and option agreement with Janssen to develop and
commercialize HexaBody-CD38, a next-generation CD38 mono-
clonal antibody-based investigational medicine incorporating
the HexaBody technology platform. A Phase 1/2 clinical study of
HexaBody-CD38 in hematologic malignancies is ongoing.
In September 2021 we decided that the data did not support the
further development of HexaBody-DR5/DR5.
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Antibody Technologies
HexaBody Process
The HexaBody technology platform is an innovative approach for the creation of potent therapeutics.
It builds on recent insights in the natural biology of antibodies. The technology enhances the ordered
clustering of antibodies into hexamers after they bind to their target cells. This biological mechanism
can be exploited to robustly enhance cell killing via complement-dependent cytotoxicity (CDC)
or agonist outside-in signaling induced by clustering. The HexaBody technology platform can be
combined with Genmab’s DuoBody technology platform as well as with other antibody technologies.
target cell
antigen binding
hexamerization
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CDC induction
Clustering:
outside-in signaling
complement
cascade
MAC
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DuoHexaBody Technology
Platform
Combining Dual-Targeting and
Enhanced Potency
• Antibody technology that
combines DuoBody and
HexaBody technology platforms
• Creates bispecific antibodies
with target-mediated enhanced
potency
• First DuoHexaBody-based
investigational medicine in the
clinic — DuoHexaBody-CD37
(co-development with AbbVie)
The DuoHexaBody technology platform is a proprietary
technology that combines the dual targeting of our DuoBody
technology platform with the enhanced potency of our
HexaBody technology platform, creating bispecific antibodies
with target-mediated enhanced hexamerization. We currently
have one proprietary bispecific antibody-based investiga-
tional medicine created with the DuoHexaBody technology
platform, DuoHexaBody-CD37 with potential in hematological
malignancies. DuoHexaBody-CD37 is a bispecific antibody
that targets two non-overlapping CD37 epitopes. It entered the
clinic in 2020 and is being developed under our collaboration
agreement with AbbVie.
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2021 Annual Report / Management’s Review / Our Business
Antibody Technologies
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
HexElect Technology
Platform
Enhancing Selectivity and
Potency
• Antibody technology platform
inspired by the HexaBody
technology platform
• Combines dual-targeting with
enhanced selectivity and potency
The HexElect antibody technology platform
is Genmab’s newest proprietary technology.
This technology combines two HexaBody
molecules designed to effectively and selec-
tively hit only those cells that express both
targets by making the activity of complexes
of HexaBody molecules dependent on their
binding to two different targets on the same
cell. The HexElect technology platform
maximizes efficacy while minimizing possible
toxicity, potentially leading to more potent and
safer investigational medicines.
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Review
Financial
Statements
Other
Information
Risk and
Financial
Review
There is only one thing that makes a dream impossible to achieve:
the fear of failure. This is an exciting moment for Genmab. I’m so proud
to be part of the tisotumab vedotin team and of this achievement, which
provides a new treatment option for patients in the U.S. with recurrent
and metastatic cervical carcinoma.
Ibrahima Soumaoro, Senior Medical Director, Solid Tumors, United States
55 Risk Management
59 Enterprise Risk Management
60 Financial Review
66 Shareholders and Share Information
54
2021 Annual Report / Management’s Review / Risk and Financial Review
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Review
Financial
Statements
Other
Information
Genmab is committed
to promoting ethical and
compliant conduct in all
areas and in all aspects
of our business and
understands ethical data
use is critical for Genmab’s
role in society, not least
in connection with
responsible innovation.
Risk Management
Genmab has core facilities in four countries and
performs research and development activities
with clinical trials conducted around the globe.
Through our activities, we are exposed to a variety
of risks, some of which are beyond our control.
These risks may have a significant impact on our
business if not properly assessed and controlled.
Maintaining a strong control environment, with
adequate procedures for identification and
assessment of risks and adhering to operational
policies designed to reduce such risks to an
acceptable level, is essential for the continued
development of Genmab.
It is our policy to identify and reduce the risks
derived from our operations and to establish
insurance coverage to mitigate any residual risk,
wherever considered practicable. The Board of
Directors performs a yearly review of Genmab’s
insurance coverage to ensure that it is appropriate.
For further information about the risks and
uncertainties that Genmab faces, refer to the
current Form 20-F filed with the SEC.
Genmab is committed to promoting ethical and
compliant conduct in all areas and in all aspects
of our business and understands ethical data use
is critical for Genmab’s role in society, not least
in connection with responsible innovation. Data
ethics is an integrated component in our perfor-
mance of clinical trials and is subject by law to the
approval of national ethics committees. The data
ethics aspects of Genmab’s business have so far
been appropriately addressed through the legal
requirements for approval by the ethic commit-
tees. As Genmab is evolving into a fully integrated
end-to-end biotech, in 2021 we initiated the
work to better address requirements for broader
global data ethics principles. These principles will
be further developed and will be implemented
through policies and trainings across the organi-
zation in 2022 closely tracking the International
Federation of Pharmaceutical Manufacturers &
Associations (IFPMA) data ethics principles.
The following is a summary of some of Genmab’s
key risk areas and how we attempt to address and
mitigate such risks. Environmental and ethical
risks are also covered in Genmab’s statutory
report on Corporate Responsibility.
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2021 Annual Report / Management’s Review / Risk and Financial Review
Risk Management
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Risk related to
Risk areas
Mitigation
Risk trend
Business and
Products
The identification and development of successful products is
expensive and includes time-consuming clinical trials with uncer-
tain outcomes and the risk of failure to obtain regulatory approval
in one or more jurisdictions.
Genmab is dependent on the identification and development of
new proprietary technologies and access to new third-party tech-
nologies. This exposes us to safety issues as well as other failures
and setbacks related to use of such new or existing technologies.
Genmab faces ongoing uncertainty about the successful commer-
cialization of product candidates. This is a result of factors
including immense competition on the basis of cost and efficacy
as well as rapid technological change, which may result in others
discovering, developing or commercializing competing products
before or more successfully than us.
Genmab’s near- and mid-term prospects are substantially depen-
dent on continued clinical and commercial success of DARZALEX.
DARZALEX is subject to intense competition in the multiple
myeloma therapy market.
Genmab has a disciplined approach to investment, focusing on areas with the potential to maximize success, including
new technologies and formats, scaling up to expand from early- to late-stage development and commercialization.
Genmab has established various committees to ensure optimal selection of disease targets and formats of our antibody
candidates, and to monitor progress of preclinical and clinical development. We strive to have a well-balanced product
pipeline and continue to identify and search for new product candidates and closely follow the market.
Genmab’s teams, including Translational Research and Data Science, work together to create an analytics ecosystem
that includes technology, processes and people working together to integrate data, allowing for a fast and transparent
decision making process. Genmab continually strives to identify and develop new technologies, such as the DuoBody,
HexaBody, DuoHexaBody and HexElect technology platforms, and gain access to competitive new third-party technol-
ogies such as ADC technology and mRNA technology. We closely monitor our preclinical programs and clinical trials to
mitigate any unforeseen safety issues or other failures or setbacks associated with the use of our proprietary technology
platforms, ADC technology or mRNA technology.
From early in the research phase and throughout development, commercial potential and associated risks are assessed
to ensure that final products have the potential to be commercially viable. Genmab attempts to control commercial risks
in part by monitoring and evaluating current market conditions, competing products and new technologies, to potentially
gain access to new technologies and products that may supplement our pipeline. Genmab also strives to ensure market
exclusivity for its own technologies and products by seeking patent protection.
Genmab focuses on its three-pronged strategy of focusing on our core competence, turning science into medicine and
building a profitable and successful biotech to develop a broad pipeline of unique best-in-class or first-in-class antibody
products with significant commercial potential. In addition, Genmab maintains a strong cash position, disciplined finan-
cial management, and a flexible and capital efficient business model to mitigate potential setbacks for DARZALEX.
In 2020, Genmab commenced binding arbitration of two matters arising under the daratumumab license agreement
with Janssen. While Genmab intends to vigorously protect its rights under the agreement, the outcome of any arbitration
proceeding, as well as its duration, is inherently uncertain.
In 2019 Genmab entered into an exclusive license agreement with Janssen regarding a next-generation CD38 antibody
product, HexaBody-CD38. In 2020 two additional Genmab- created antibody products, Kesimpta and TEPEZZA, were
approved by the U.S. FDA. In 2021 the first DuoBody-based medicine, RYBREVANT was also approved by the U.S. FDA
and the EC. All of these provide Genmab with additional recurring royalty revenue. In addition, in 2021 Genmab’s first
medicine, Tivdak, in development with Seagen, was approved by the U.S. FDA.
Genmab has exposure to product liability claims related to the use
or misuse of our products and technologies.
Product liability claims and/or litigation could materially affect our business and financial position, and Genmab there-
fore maintains product liability insurance for our clinical trials and our approved products and other coverage required
under applicable laws.
Our core research and manufacturing activities are carried out at a
limited number of locations. Any event resulting in Genmab’s or our
vendors’/suppliers’ inability to operate these facilities could mate-
rially disrupt our business.
Genmab employs oversight and quality risk management principles. In addition Genmab follows Good Laboratory
Practices (GLP), Good Manufacturing Practices (GMP) and requires that our vendors operate with the same standards.
Genmab has established a quality assurance (QA) department to set high quality standards and monitor adherence to
these Practices.
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New
Unchanged
Decreased
Increased
Risk Management
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Risk related to
Risk areas
Mitigation
Risk trend
Business and
Products
(continued)
If we are unable to effectively manage Genmab’s continued
fast-paced growth or build our commercialization and other capa-
bilities, our business, financial condition and net profits may be
adversely affected. Any business disruption or failure to properly
manage this continued growth and transformation so as to reflect
and support our organizational strategies and priorities while
assuring ethical business practices and prudent risk management
could have a material adverse effect on our business, financial
condition, results of operations and cash flows.
Genmab is subject to government restrictions on pricing/public
reimbursement as well as other healthcare payor cost-containment
initiatives; increased pressures by governmental and third-party
payors to reduce healthcare costs.
Strategic
Collaborations
Genmab is dependent on existing and new partnerships with major
pharmaceutical or biotech companies to support our business and
develop and commercialize our products.
We have experienced rapid growth over the last several years, and we anticipate further growth as our pipeline advances
and we move toward further commercialization of products. Such growth, including enabling new commercialization,
support and other functions, has placed significant demands on our management and infrastructure, including new oper-
ational and financial systems, as well as extending manufacturing and commercial outsource arrangements. Our success
will depend in part upon our ability to manage this growth effectively through strategic leadership, focused prioritization
and talent management, and maintaining our robust, values-based, collaborative culture. As we continue to grow and
evolve, we must continuously improve our operational, commercial, financial and management practices and controls.
Genmab strives to develop differentiated, cost-effective products that may obtain price reimbursement by government
healthcare programs and private health insurers.
Our business may suffer if our collaboration partners do not devote sufficient resources to our programs and products;
do not successfully maintain, defend and enforce their intellectual property rights or do not otherwise have the ability to
successfully develop or commercialize our products, independently or in collaboration with us. Our business may also
suffer if we are not able to continue our current partnerships or establish new partnerships. Genmab strives to be an
attractive and respected collaboration partner, and to pursue a close and open dialogue with our partners to share ideas
and align on best practices and decisions within clinical development and commercialization to increase the likelihood
that we reach our goals.
Regulation,
Legislation and
Compliance
Genmab is primarily dependent on one contract manufacturing
organization to produce and supply our product candidates.
Genmab is also dependent on clinical research organizations
to conduct key aspects of our clinical trials, and on partners to
conduct some of our clinical trials.
Genmab oversees outsourcing and partnership relationships to ensure consistency with strategic objectives and service
provider compliance with regulatory requirements, resources and performance. This includes assessment of contingency
plans, availability of alternative service providers and costs and resources required to switch service providers. We
evaluate financial solvency and require our suppliers to abide by a code of conduct consistent with Genmab’s Code of
Conduct.
Genmab is subject to extensive legislative, regulatory and other
requirements both during clinical development and post-marketing
approval, including healthcare, marketing/promotion, fraud and
abuse, competition/antitrust laws and regulations, as well as data
protection requirements.
Genmab is subject to strict disclosure obligations under applicable
laws and regulations, including the EU Market Abuse Regulation.
As a consequence of the listing on the Nasdaq Global Select
market, we are subject to additional U.S. regulatory require-
ments, including U.S. securities laws and the U.S. Foreign Corrupt
Practices Act, and may become more exposed to U.S. class actions.
To ensure compliance with applicable healthcare laws and regulations, Genmab has established a robust compliance
program, including a new Code of Conduct that sets high ethical standards and on which all colleagues receive regular
training. Also, our head of Global Compliance reports directly to the CEO. The data protection area, including policies and
guidance for the processing and protection of personal data, is overseen by the Company’s Data Protection Officer.
To further support compliance with regulatory and other legal requirements applicable to our business and opera-
tions, including current Good Laboratory Practices (cGLP), current Good Clinical Practices (cGCP) and current Good
Manufacturing Practices (cGMP), Genmab has established a quality assurance department and makes every effort to
stay abreast of and adhere to regulatory and legislation changes.
Genmab has also established relevant procedures and guidelines to ensure transparency with respect to timely,
adequate and correct information to the market and otherwise comply with applicable U.S. securities laws and other
legal and regulatory requirements.
In 2021 an internal audit function was established.
Legislation, regulations, industry codes and practices, and their
application may change from time to time.
To prevent unwarranted consequences of new and amended legislation, regulations, etc., Genmab strives to stay current
with respect to all applicable legislation, regulations, industry codes and practices by means of its internal compliance
function as well as internal and external legal counsel. Also, internal procedures for review and refinement of contracts is
ongoing to ensure contractual consistency and compliance with applicable legislation, regulation, and other standards.
57
2021 Annual Report / Management’s Review / Risk and Financial Review
Risk Level in Relation to Last Year:
New
Unchanged
Decreased
Increased
Risk Management
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Risk related to
Risk areas
Mitigation
Risk trend
Intellectual
Property
Genmab is dependent on protecting our own intellectual property
rights to regain our investments and protect our competitive positions.
We may become involved in lawsuits to protect or enforce our
patents or other intellectual property which could result in costly
litigation and unfavorable outcomes.
Claims may be asserted against us that we infringe the intellectual
property of third parties could result in costly litigation and unfavor-
able outcomes.
Finances
Genmab may need additional funding.
Genmab is exposed to different kinds of financial risks, including
currency exposure and changes in interest rates as well as
changes in Danish, U.S. or foreign tax laws or related compliance
requirements.
Management
and Workforce
Genmab may have an inability to attract and retain suitably quali-
fied team members.
Cybersecurity
Genmab may be subject to malicious cyber-attacks which can lead
to the theft or leakage of intellectual property, sensitive business
data, or personal employee or patient data, with the result of signif-
icant business disruptions, monetary loss or fines from authorities,
or reputational damage.
COVID-19
Pandemic
The global outbreak of COVID-19 has continued to evolve, may be
further prolonged, and may have long-term impacts on the devel-
opment, regulatory approval and commercialization of our product
candidates and on net sales of our approved products. The extent,
length and consequences of the pandemic are uncertain and
impossible to predict. The factors discussed above, as well as other
factors which are currently unanticipated or unforeseeable, may
result in further and other unforeseen material adverse impacts on
our business and financial performance.
Climate
Genmab’s inability to manage the carbon footprint from our busi-
ness operations; climate-related events may impact our business
operations or that of our third-party partners or suppliers.
Genmab files and prosecutes patent applications to optimally protect its products and technologies. To protect trade
secrets and technologies, Genmab maintains strict confidentiality standards and agreements for employees and collab-
orating parties.
Genmab actively monitors third-party patent positions within our relevant fields to avoid violating any third-party
patent rights.
Because Genmab’s future commercial potential and operating profits are hard to predict, Genmab’s policy is to main-
tain a strong capital base so as to maintain investor, creditor and market confidence, and a continuous advancement of
Genmab’s product pipeline and business in general.
Genmab has established financial risk management guidelines to identify and analyze relevant risks to set appropriate
risk limits and controls and to monitor the risks and adherence to limits. Please refer to note 4.2 of the financial state-
ments for additional information regarding financial risks.
To attract and retain our highly skilled team, including the members of Genmab’s Senior Leadership, Genmab offers
competitive remuneration packages, including share-based remuneration. Genmab strives to create a positive and ener-
gizing working environment with development and training opportunities for its team members. Genmab has strong core
values that nourish high-integrity and ethical behavior, respectful and candid tone and culture, as well as trust and team-
work. Please refer to note 4.6 of the financial statements for additional information regarding share-based remuneration.
Genmab has implemented security controls and processes to mitigate the risk of security breaches. Genmab makes use
of the National Institute of Standards and Technology (NIST) Cybersecurity Framework and other security standards to
define and implement such security controls. Due to the continually changing threat environment, regular assessments
are executed to ensure that implemented security controls and processes follow the threat profile of the Company and
effectively support Genmab’s ambitious business strategy. The risk of security breaches is regarded as enterprise risk
and the Company’s threat profile, the security program and security incidents are presented and discussed in meetings
of the Global Compliance and Risk Committee and the Audit and Finance Committee of the Board of Directors.
Genmab has established a COVID-19 response team, led by the CEO, that closely monitors the evolving situation,
develops and implements precautionary measures to help limit the impact of COVID-19 at our workplace and on our
communities, helps ensure business continuity and mitigate effects on employee well-being as a consequence of
working from home. Genmab assesses the situation on an ongoing basis in close contact with clinical trial sites, physi-
cians and contract research organizations (CROs) to evaluate the impact and challenges posed by the COVID-19 situation
and manage them accordingly.
In 2021, we committed to an assessment of our carbon footprint and have implemented the TCFD recommendations.
We calculated our Scope 1 and 2 emissions in accordance with the global standard for carbon accounting, the
Greenhouse Gas Protocol. This calculation will serve as Genmab’s starting point in establishing the baseline upon which
to determine climate ambitions, targets and emissions reductions. Genmab’s Scope 3 emissions will be formalized in
2022 to determine the total greenhouse gas emissions footprint.
Genmab also conducted a scenario analysis to evaluate our risks and opportunities due to the rapid pace of world climate
change. Genmab’s climate strategy, progress toward carbon reduction targets, climate-related financial risk, relevant
prevention and mitigation measures will be presented to the Board of Directors biannually.
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2021 Annual Report / Management’s Review / Risk and Financial Review
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New
Unchanged
Decreased
Increased
Enterprise Risk Management
Effective ERM starts with strong governance
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
As an international biotech company dedicated to improving
the lives of cancer patients around the world, Genmab operates
within a heavily-regulated environment that exposes us to an
ever-evolving set of risks, some of which are beyond our control.
We maintain facilities in four countries, conduct activities in
additional areas, and perform an array of essential innovation,
research, development, commercialization and support
functions, all of which pose risks to our operations and success.
Specifically, these operations and activities expose us to risks
that include but may not be limited to financial, research and
development, regulatory, IT/data/technology, compliance, legal,
and also environmental risks.
In order to assure that we are positioned to effectively identify
and mitigate the potential impacts of these risks, Genmab has
dedicated significant resources this year toward enabling a more
robust ERM framework under a new Global Compliance function
that reports directly to the CEO. In concert with a refreshed Code
of Conduct, company policies and procedures, Genmab has
chartered a Global Compliance and Risk governance committee
or GCRC co-chaired by the CEO and the head of Compliance.
Genmab has updated our risk model and framework to include
significantly enhanced risk oversight, mitigation, governance and
reporting, all of which we believe positions us to better manage
the risks associated with our business, now and into the future.
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2021 Annual Report / Management’s Review / Risk and Financial Review
Board of Directors
and Audit and Finance
Committee
Board of Directors delegates ERM/Risk oversight to the Audit and
Finance Committee, but retains visibility of ERM progress. The Audit
and Finance Committee is accountable to ensure management
appropriately manages the risks to the business.
Feedback
Executive Management
Maintains ultimate ownership of and accountability for
management of top risks, enabling proper linkage of risk
management to strategic initiatives and business decisions.
Global Compliance and
Risk Committee
Validation of risk identification, prioritization, strategic and tactical
ownership of risk mitigation plans and reporting.
ERM Framework
Routinely gathers risks, evaluates with risk sponsors, prioritizes and
reports to the GCRC, Executive Management and Board of Directors,
driving deep risk discussions, and supporting risk sponsors and
management in facilitating robust enterprise risk management
processes, risk-intelligent decision making and key risk capabilities.
Risk Sponsors and
Business Champions
Manage risks in normal course of business, executing risk plans/
mitigation activities, and monitoring and reporting key risk
information.
Information
Financial Review
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Genmab has had a very strong 2021 —
we have created growing recurring
revenue streams based on medicines
with exceptional growth profiles,
giving us a backbone of significant
underlying profitability.
Anthony Pagano
Executive Vice President and Chief Financial Officer
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Management’s
Review
Financial
Statements
Other
Information
Financial Review
The financial statements are prepared on a consolidated basis for
Genmab A/S (Parent Company) and its subsidiaries. The Genmab
financial statements are published in Danish Kroner (DKK). The
Genmab consolidated Group is referenced herein as “Genmab” or
the “Company”.
Result for the Year
Guidance and Result for 2021
(DKK million)
Revenue
Operating expenses
Operating profit
Latest
Guidance
7,900–8,500
(5,300)–(5,600)
2,300–3,200
Actual
8,482
(5,464)
3,018
Overall, our financial performance was in line with the latest
guidance published on November 10, 2021.
Revenue
Genmab’s revenue was DKK 8,482 million in 2021 compared to
DKK 10,111 million in 2020. The decrease of DKK 1,629 million, or
16%, was primarily driven by the one-time upfront payment of DKK
4,398 million recognized as license revenue from AbbVie pursuant
to our collaboration announced in June 2020, partly offset by higher
DARZALEX royalties as well as milestone revenue from various
collaboration partners.
Of the revenue for 2021, DKK 6,977 million, or 82%, was attribut-
able to royalties, DKK 954 million, or 11%, to milestone revenue,
DKK 531 million, or 6%, to reimbursement revenue, and DKK
20 million, or 1%, to collaboration revenue. This is compared to DKK
4,741 million, or 47%, attributable to royalties, DKK 4,588 million,
or 45%, to license revenue, DKK 431 million, or 4%, to reimburse-
ment revenue and DKK 351 million, or 4%, to milestone revenue in
2020. There was no collaboration revenue in 2020.
Split of 2021 Revenue
(DKK million)
Split of 2020 Revenue
(DKK million)
8,482
2021 Total Revenue
Royalties
6,977
Milestone Revenue
954
Reimbursement
Revenue
531
Collaboration Revenue
20
10,111
2020 Total Revenue
Royalties
4,741
License Revenue
4,588
Reimbursement
Revenue
431
Milestone Revenue
351
Royalties
Royalty revenue amounted to DKK 6,977 million in 2021 compared
to DKK 4,741 million in 2020. The increase of DKK 2,236 million, or
47%, was primarily driven by higher DARZALEX royalties achieved
under our daratumumab collaboration with Janssen. The table
below summarizes Genmab’s royalty revenue by product.
(DKK million)
DARZALEX
TEPEZZA
Kesimpta
Other
Total royalties
2021
6,135
593
235
14
6,977
2020
4,419
298
10
14
4,741
Net sales of DARZALEX by Janssen were USD 6,023 million in 2021
compared to USD 4,190 million in 2020. The increase of USD
1,833 million, or 44%, was driven by the continued strong uptake
of DARZALEX. Royalty revenue on net sales of DARZALEX was DKK
6,135 million in 2021 compared to DKK 4,419 million in 2020, an
increase of DKK 1,716 million. The percentage increase in royalties
of 39% is lower than the percentage increase in the underlying
net sales primarily due to the impact of Janssen’s continued with-
holding of a portion of the royalty payments owed to Genmab and
the lower average exchange rate between the USD and DKK in 2021
compared to 2020. Since the second quarter of 2020, Janssen has
reduced its quarterly royalty payments to Genmab by what Janssen
claims to be Genmab’s share of Janssen’s royalty payments to
Halozyme in connection with SC sales. Given the ongoing arbitra-
tion, Genmab has reflected this reduction in its royalty revenues
each quarter. To date, the impact to royalties is estimated to be
DKK 501 million (2021: DKK 421 million, 2020: DKK 80 million).
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Table of
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Management’s
Review
Financial
Statements
Other
Information
TEPEZZA was launched by Horizon in the first quarter of 2020.
In December 2020, Horizon announced that there was a supply
disruption related to the production of TEPEZZA due to U.S. govern-
ment-mandated COVID-19 vaccine production requirements.
Subsequently, Horizon announced that it had resumed supplying
the market beginning in April 2021. Royalties, which are based
on net sales, are estimated to be DKK 593 million during 2021
compared to DKK 298 million during 2020. The increase of DKK
295 million, or 99%, was driven by the strong uptake of TEPEZZA.
Novartis was granted U.S. FDA approval for Kesimpta in relapsing
multiple sclerosis and Genmab started recognizing royalties on
net sales of Kesimpta during the third quarter of 2020. Royalties,
which are based on net sales, amounted to DKK 235 million in 2021
compared to DKK 10 million during 2020.
Janssen was granted U.S. FDA approval for RYBREVANT, a fully
human bispecific antibody that targets EGFR and cMet, and Genmab
started recognizing royalties on net sales of RYBREVANT during
the second quarter of 2021. Royalties were not material through
December 31, 2021.
Royalty revenue fluctuations from period to period are due primarily
to the level of product net sales as well as foreign currency
exchange rates.
Reimbursement Revenue
Reimbursement revenue, mainly comprised of the reimbursement
of certain research and development costs related to the develop-
ment work under Genmab’s collaboration agreements, amounted to
DKK 531 million in 2021 compared to DKK 431 million in 2020. The
increase of DKK 100 million, or 23%, was primarily driven by higher
activities under our collaboration agreement with BioNTech for
DuoBody-PD-L1x4-1BB and DuoBody-CD40x4-1BB.
Milestone Revenue
Milestone revenue was DKK 954 million in 2021 compared to DKK
351 million in 2020, an increase of DKK 603 million, primarily driven
by the following:
Operating Expenses
Total operating expenses increased by DKK 1,666 million, or 44%,
from DKK 3,798 million in 2020 to DKK 5,464 million in 2021.
• AbbVie milestone of DKK 245 million (USD 40 million) triggered by
the first patient dosed in the Phase 3 study of epcoritamab,
• DARZALEX FASPRO milestone of DKK 184 million (USD 30 million)
driven by the first commercial sale in the U.S. for patients with
newly diagnosed AL amyloidosis,
• Janssen DuoBody milestone of DKK 152 million (USD 25 million)
driven by U.S. FDA approval for RYBREVANT, and
• DARZALEX SC milestone of DKK 125 million (USD 20 million)
driven by the first commercial sale in the EU for patients with
newly diagnosed AL amyloidosis.
Milestone revenue may fluctuate significantly from period to period
due to both the timing of achievements and the varying amount
of each individual milestone under our license and collaboration
agreements.
License Revenue
There was no license revenue in 2021. License revenue was DKK
4,588 million in 2020, which was primarily driven by the delivery of
licenses for three programs under the AbbVie collaboration of DKK
4,398 million and the payment of DKK 188 million (USD 30 million)
from Novartis as a result of Novartis’s plan to transition Arzerra
(ofatumumab) to an oncology access program for chronic lympho-
cytic leukemia patients in the U.S.
Collaboration Revenue
In September 2021, Genmab and Seagen announced U.S. FDA
accelerated approval for Tivdak in previously treated recurrent or
metastatic cervical cancer. Collaboration revenue was estimated to
be DKK 20 million in 2021.
Research and Development Expenses
Research and development costs amounted to DKK 4,181 million in
2021 compared to DKK 3,137 million in 2020. The increase of DKK
1,044 million, or 33%, was driven by the continued advancement of
epcoritamab and DuoBody-CD40x4-1BB under our collaborations
with AbbVie and BioNTech, respectively, and the increase in new
team members to support the expansion of our product pipeline.
Research and development costs accounted for 77% of the total
operating expenses in 2021 compared to 83% in 2020.
The following table provides information regarding our research and
development expenses for 2021, as compared to 2020.
(DKK million)
Research(1)
Development and contract
manufacturing(2)
Clinical(3)
Other(4)
Total research and
development expenses
2021
1,019
1,374
1,360
428
2020
703
1,036
1,032
366
4,181
3,137
Percentage
Change
2021/2020
45%
33%
32%
17%
33%
(1) Research expenses include, among other things, personnel, occupancy and
laboratory expenses, technology access fees associated with identification of new
mAbs, expenses associated with the development of new proprietary technologies
and research activities associated with our product candidates, such as in vitro
and in vivo studies, translational research, and IND enabling toxicology studies.
(2) Development and contract manufacturing expenses include personnel and
occupancy expenses, external contract manufacturing costs for the scaleup and
pre-approval manufacturing of drug product used in research and our clinical trials,
costs for drug product supplied to our collaborators, costs related to preparation
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for the production of process validation batches to be used in potential future
regulatory submissions, quality control and assurance activities, and storage and
shipment of our product candidates.
(3) Clinical expenses include personnel, travel, occupancy costs, and external clinical
trial costs including contract research organizations, investigator fees, clinical
site fees, contractors and regulatory activities associated with conducting human
clinical trials.
(4) Other research and development expenses primarily include share-based compen-
sation, depreciation, amortization and impairment expenses.
Third-party costs for epcoritamab increased by DKK 263 million, or
67%, in 2021 as compared to 2020, primarily due to the advance-
ment of the program under Genmab’s collaboration with AbbVie.
Third-party costs for DuoBody-PD-L1x4-1BB increased by DKK
24 million, or 7%, in 2021 as compared to 2020, primarily due to
the continued advancement of the program under Genmab’s collab-
oration with BioNTech.
Selling, General and Administrative Expenses
Selling, general and administrative expenses were DKK
1,283 million in 2021 compared to DKK 661 million in 2020. The
increase of DKK 622 million, or 94%, was driven by the increase
in new team members to support the launch of Tivdak, as well as
expansion of commercialization capabilities and Genmab’s broader
organizational infrastructure.
The following table shows third-party costs incurred for research,
contract manufacturing of our product candidates and clinical and
regulatory services for 2021, as compared to 2020. The table also
presents unallocated costs and overhead consisting of third-party
costs for our preclinical stage programs, personnel, facilities and
other indirect costs not directly charged to development programs.
Third party costs for DuoBody-CD40x4-1BB increased by DKK
87 million, or 181%, in 2021 as compared to 2020, primarily due to
the continued advancement of the program under Genmab’s collab-
oration with BioNTech.
DKK 529 million, or 41% of selling, general and administrative
expenses in 2021, was related to remuneration of employees and
senior management involved in selling, general and administra-
tive activities, as compared to DKK 250 million, or 38% of selling,
general and administrative expenses in 2020.
2021
2020
Percentage
Change
2021/2020
Third party costs for DuoHexaBody-CD37 increased by DKK
29 million, or 48%, in 2021 as compared to 2020, primarily due
to the advancement of the program under Genmab’s collaboration
with AbbVie.
(DKK million)
Tisotumab vedotin
Epcoritamab
DuoBody-PD-L1x4-1BB
DuoBody CD40x4-1BB
DuoHexaBody CD37
Other clinical stage programs
Total third-party costs for
clinical stage programs
Preclinical projects
Personnel, unallocated costs
and overhead
Total research and
development expenses
365
654
371
135
89
161
399
391
347
48
60
293
1,775
840
1,538
472
1,566
1,127
4,181
3,137
(9)%
67%
7%
181%
48%
(45)%
15%
78%
39%
33%
Third-party costs for tisotumab vedotin decreased by DKK
34 million, or 9%, in 2021 as compared to 2020, primarily due to
manufacturing work related to validations finalized in 2020.
Third-party costs for Genmab’s other clinical stage programs
decreased by DKK 132 million, or 45%, in 2021 as compared
to 2020, primarily related to enapotamab vedotin. Data from
expansion cohorts that did not meet Genmab’s criteria for proof-
of-concept resulted in Genmab’s decision not to advance the
development of enapotamab vedotin in 2020.
Research and development expenses related to our preclin-
ical projects increased by DKK 368 million, or 78%, in 2021 as
compared to 2020 driven by the continued investment in our
preclinical programs.
Personnel, unallocated costs and overhead increased by DKK
439 million, or 39%, in 2021 as compared to 2020, primarily due to
an increase in staffing levels and the expansion of our facilities to
accommodate our growth. Our research and development FTEs (full-
time equivalents) increased from 647 at the end of 2020 to 927 at
the end of 2021.
Selling, general and administrative expenses accounted for 23% of
the total operating expenses in 2021 compared to 17% in 2020.
Operating Profit
Operating profit was DKK 3,018 million in 2021 compared to DKK
6,313 million in 2020. The decrease of DKK 3,295 million, or 52%,
was driven by lower revenue and increased operating expenses as
described above.
Net Financial Items
The net financial items reflect a combination of interest income
and expense, fair value adjustments on our portfolio of marketable
securities, fair value adjustments on other investments, as well as
foreign exchange adjustments.
Financial income for 2021 was DKK 1,667 million, reflecting
interest and other financial income of DKK 197 million, and net
foreign exchange rate gain of DKK 1,470 million, as compared to
DKK 1,149 million for 2020, reflecting interest and other financial
income of DKK 184 million, and net gain on other investments of
DKK 965 million.
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Financial expenses for 2021 were DKK 702 million related to
interest and other financial expenses of DKK 13 million, net loss
on marketable securities of DKK 246 million, and net loss on other
investments of DKK 443 million, as compared to DKK 1,558 million
for 2020, related to interest and other financial expenses of DKK
10 million, net loss on marketable securities of DKK 92 million, and
net foreign exchange rate loss of DKK 1,456 million.
As a result of the above, net financial items for 2021 were income
of DKK 965 million, as compared to expense of DKK 409 million
for 2020. The increase in net financial items was primarily driven
by the strengthening of the USD against the DKK on Genmab’s USD
denominated portfolio and cash holdings, partly offset by the loss
on other investments due to the change in fair value of Genmab’s
investments in common shares of CureVac and Bolt, and the loss on
marketable securities driven by movements in interest rates in the
United States and Europe. Please refer to note 4.2 for additional
information regarding foreign currency risk and note 4.5 for addi-
tional information regarding the net financial items.
Corporate Tax
Corporate tax expense for 2021 was DKK 975 million compared to
DKK 1,146 million for 2020. The decrease in corporate tax expense
is primarily the result of Genmab’s lower net profit before tax in
2021 as compared to 2020. The effective tax rate in 2021 was
24.5% compared to 19.4% in 2020. The increase in the effective tax
rate in 2020 was favorable to the Danish statutory rate (22.0%) due
to the utilization of prior period tax benefits. The effective tax rate
in 2021 is unfavorable to the Danish statutory rate primarily due to
the inability to deduct certain subsidiary losses for tax purposes.
Please refer to note 2.4 for additional information regarding the
corporate tax and deferred tax assets including management’s
significant judgements and estimates.
Net Profit
Net profit for 2021 was DKK 3,008 million compared to DKK
4,758 million in 2020. The decrease of DKK 1,750 million, or 37%,
was driven by the items described above.
Liquidity and Capital Resources
(DKK million)
Marketable securities
Cash and cash equivalents
Shareholders’ equity
December 31,
2021
December 31,
2020
10,381
8,957
22,196
8,819
7,260
19,121
of less than 90 days at the date of acquisition are classified as cash
and cash equivalents.
Genmab requires cash to meet our operating expenses and
capital expenditures. We have funded our cash requirements
since inception, including through December 31, 2021, primarily
with royalty and milestone payments from our partners, upfront
payments and equity financing. Genmab expects to continue to
fund a significant portion of our development costs for propri-
etary product candidates as well as commercialization activities
with funds received from royalties and milestone payments from
partners.
As of December 31, 2021, Genmab’s USD denominated cash and
cash equivalents, and marketable securities represented 86% of
Genmab’s total cash and cash equivalents, and marketable securi-
ties compared to 83% as of December 31, 2020.
Marketable securities are invested in highly secure and liquid
investments with short effective maturities. As of December 31,
2021, 68% of Genmab’s marketable securities were long-term
A rated or higher, or short-term rated A-1/P-1 by S&P, Moody’s or
Fitch compared to 100% as of December 31, 2020. The change in
portfolio mix is driven by Genmab’s desire to diversify investment
types in the portfolio and based on operating requirements.
As of December 31, 2021, DKK 8,957 million, as compared to DKK
7,260 million as of December 31, 2020, was held as cash and
cash equivalents, and DKK 10,381 million, as compared to DKK
8,819 million as of December 31, 2020, was held as liquid invest-
ments in short-term government and other debt instruments.
Genmab’s expenditures on current and future preclinical and clinical
development programs are subject to numerous uncertainties in
timing and cost to completion. In order to advance our product
candidates toward commercialization, the product candidates
are tested in numerous preclinical safety, toxicology and efficacy
studies. Genmab then conducts clinical trials for those product
candidates that take several years or more to complete. The length
of time varies substantially based upon the type, complexity,
novelty and intended use of a product candidate. The cost of clinical
trials may vary significantly over the life of a project as a result of a
variety of factors, including: the number of patients required in the
clinical trials; the length of time required to enroll trial participants;
the number and location of sites included in the trials; the costs of
producing supplies of the product candidates needed for clinical
trials and regulatory submissions; the safety and efficacy profile of
the product candidate; the use of CROs to assist with the manage-
ment of the trials; and the costs and timing of, and the ability to
secure, regulatory approvals.
Cash and cash equivalents included short-term marketable securi-
ties of DKK 296 million at the end of December 2021, compared to
DKK 2,206 million at the end of December 2020. In accordance with
Genmab’s accounting policy, securities purchased with a maturity
Genmab’s expenses also fluctuate from period to period based
on the degree of collaborative activities, timing of manufacturing
campaigns, numbers of patients enrolled in clinical trials and the
outcome of each clinical trial event. As a result, the Company is
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unable to determine with any degree of certainty the anticipated
completion dates, duration and completion costs of research and
development projects, or when and to what extent Genmab will
receive cash inflows from the commercialization and sale of any
product candidates. The Company also cannot predict the actual
amount or timing of future royalties and milestone payments, and
these may differ from estimates. Further, as the global COVID-19
pandemic has continued to evolve, there may be long-term impacts
on the development, regulatory approval and commercialization of
our product candidates and on net sales of our approved products
by our collaboration partners.
Genmab expects to make additional capital outlays and to increase
operating expenditures over the next several years as the Company
hires additional employees, supports preclinical development,
manufacturing, clinical trial activities, product collaborations and
commercialization activities. As spending increases on research,
development and commercialization activities related to product
collaborations, Genmab may be required to make certain capital
outlays against which Genmab expects to receive reimbursement
to the extent the outlay exceeds Genmab’s share under the appli-
cable collaboration agreement. The Company expects that the
time-lag between the expenditure by us, on the one hand, and the
reimbursement by a partner of its relevant share, on the other hand,
will increase Genmab’s working capital needs. To the extent the
Company’s capital resources are insufficient to meet future capital
requirements, Genmab will need to finance operating requirements
and cash needs through public or private equity offerings, debt
financings, or additional corporate collaboration and licensing
arrangements.
Please refer to notes 4.2 and 4.4 for additional information
regarding our financial risks and marketable securities.
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Other
Information
Cash Flows
Balance Sheet
As of December 31, 2021, total assets were DKK 24,627 million,
compared to DKK 21,143 million as of December 31, 2020. As of
December 31, 2021, assets are mainly comprised of marketable
securities of DKK 10,381 million, cash and cash equivalents of
DKK 8,957 million, and current receivables of DKK 3,367 million.
The receivables consist primarily of amounts related to royalties,
milestones and reimbursement revenue from our collaboration
agreements. The credit risk on receivables is considered to be
limited. Please refer to note 3.5 for additional information
regarding receivables.
As of December 31, 2021, total liabilities were DKK 2,431 million
compared to DKK 2,022 million as of December 31, 2020. The
increase in total liabilities of DKK 409 million, or 20%, was primarily
driven by an increase in other payables of DKK 295 million related
to our research and development programs and accrued compensa-
tion, and an increase in lease liabilities of DKK 86 million related to
the commencement of leases in the U.S. and Japan.
Shareholders’ equity as of December 31, 2021 was DKK
22,196 million compared to DKK 19,121 million as of December 31,
2020. The increase was driven primarily by Genmab’s net profit and
the issuance of shares related to the share-based compensation
plans, partly offset by the purchase of treasury shares. Genmab’s
equity ratio was 90% as of December 31, 2021 and 2020.
The following table provides information regarding Genmab’s cash
flow for 2021 and 2020.
Cash Flow
(DKK million)
Cash provided by operating activities
Cash (used in) investing activities
Cash (used in)/provided by financing activities
Increase in cash and cash equivalents
2021
2,228
(961)
(420)
847
2020
6,433
(2,351)
71
4,153
Net cash provided by operating activities for 2021 was DKK 2,228
million, as compared to DKK 6,433 million in 2020. The decrease
of DKK 4,205 million, or 65%, was primarily driven by lower cash
provided by operating activities related to the upfront payment from
AbbVie included in our operating profit and collected in July 2020,
and higher positive working capital adjustments in 2020 related to
DARZALEX milestones achieved in the fourth quarter of 2019 that
were received in 2020 of DKK 1.7 billion.
Net cash used in investing activities for 2021 was DKK 961 million,
as compared to DKK 2,351 million in 2020. The decrease of DKK
1,390 million, or 59%, primarily reflects differences between the
proceeds received from the sale and maturity of our investments
and amounts invested, and the investment in tangible assets.
Purchases of marketable securities exceeded sales and maturities
in both 2021 and 2020, but to a greater extent in 2020, which has
resulted in significant growth in Genmab’s marketable securities in
each respective year. Investing activities also includes the proceeds
from the sale of CureVac shares of DKK 438 million in 2021.
Net cash used in financing activities for 2021 was DKK 420 million,
as compared to net cash provided by financing activities of DKK
71 million in 2020. The increase in cash outflow of DKK 491 million
was primarily related to cash payments for the purchase of treasury
shares of DKK 447 million.
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Shareholders and Share Information
Ownership
Genmab is dual listed on the Nasdaq Copenhagen A/S and the
Nasdaq Global Select Market in the U.S. under the symbol GMAB.
Our communication with the capital markets complies with
the disclosure rules and regulations of these exchanges. As of
December 31, 2021, the number of registered shareholders totaled
84,300 shareholders holding a total of 63,966,391 shares, which
represented 97% of the total share capital of 65,718,456.
The following shareholder is registered in Genmab’s register of
shareholders as being the owner of a minimum of 5% of the voting
rights or a minimum of 5% of the share capital (one share equals
one vote) as of December 31, 2021:
• BlackRock, Inc., 55 East 52nd Street, New York, New York 10055,
United States of America (7.3%)
Shareholders registered in the Company’s shareholder registry may
sign up for electronic shareholder communications via Genmab’s
investor portal. The investor portal can be accessed at Genmab’s
website www.genmab.com/investors. Electronic shareholder
communication enables Genmab to, among other things, quickly
and efficiently call general meetings.
The charts included here illustrate the performance of the Genmab
share during 2021 and the geographical distribution of our share-
holders. As of December 31, 2021 Genmab’s shares closed at
DKK 2,630 and ADSs closed at USD 39.56. Please refer to note 4.7
for additional information regarding Genmab’s share capital
including authorizations to issue shares and purchase its
own shares.
The following table shows share data as of December 31, 2021.
Share Data
Denmark
U.S.
Number of shares at December 31, 2021
65,718,456
4,275,024 (represented by 42,750,240 ADSs)
Listing
Ticker Symbol
Index Membership
Nasdaq Copenhagen
Nasdaq Global Select Market, New York
GMAB
OMX Nordic Large Cap Index
OMX Copenhagen Benchmark Index
OMX Copenhagen 25 Index (OMXC25)
GMAB
Nasdaq Biotech Index
Stock Performance Comparison YTD 2021
(Index 100 = stock price on December 31, 2020)
130
120
110
100
90
80
70
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Genmab
OMXC25 Index
Nasdaq Biotech Index
Geographical Shareholder
Distribution*
2021
USA
Denmark
UK
Netherlands
Luxembourg
Other**
30%
20%
4%
3%
2020
35%
38%
3%
4%
16%
8%
19%
20%
* Based on Nasdaq Corporate Solutions aggregated
data per June 2020 and June 2021
** “Other” includes shares held in other countries and
shares not held in nominee accounts, including OTC
traded shares
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Shareholders and Share Information
American Depositary Receipt (ADR) Program
Contact:
Annual General Meeting
Genmab has a sponsored Level 3 ADR program with Deutsche Bank
Trust Company Americas. An ADS is a share certificate representing
ownership of shares in a non-U.S. corporation. ADSs issued under
Genmab’s ADR Program are quoted and traded in U.S. dollars on
the Nasdaq Global Select Market in the United States. Ten Genmab
ADSs correspond to one Genmab ordinary share. Genmab’s ADR
ticker symbol is GMAB. For more information on Genmab’s ADR
Program, visit https://ir.genmab.com/adr-program#content.
Investor Relations
Genmab’s Investor Relations and Communications department aims
to ensure relevant, accurate and timely information is available to
our investors and the financial community. We maintain an ongoing
dialogue with sell-side equity analysts, as well as major institu-
tional and retail shareholders. A list of the current analysts covering
Genmab can be found at our website along with financial reports,
company announcements, current presentations, fact sheets and
other downloads.
Marisol Peron
Senior Vice President, Global Investor Relations
and Communications
T: +1 609 524 0065; E: mmp@genmab.com
For Investor Relations:
Andrew Carlsen
Vice President, Head of Investor Relations
T: +45 33 77 95 58; E: acn@genmab.com
Genmab’s Annual General Meeting will be held on March 29, 2022
at 2:00 PM CEST. Further details will be included in the notice to
convene the Annual General Meeting.
Financial Calendar for 2022
Annual General Meeting 2022
Tuesday, March 29, 2022
Publication of the Interim Report
for the first quarter 2022
Publication of the Interim Report
for the first half 2022
Publication of the Interim Report
for the first nine months 2022
Wednesday, May 11, 2022
Wednesday, August 10, 2022
Wednesday, November 9, 2022
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Corporate
Responsibility
I joined Genmab Japan in March 2020. Since then our team has grown,
focusing on building end-to-end and best-in-class organizational
capabilities and foundational business infrastructures, while rapidly
increasing commercialization readiness. I am confident that Genmab
will make a huge difference to patients in Japan by continuing to work
closely with inspirational individuals both globally and locally.
Mika Takaki, General Manager, Japan
69 Corporate Social Responsibility and
Sustainability Commitments
73 Genmab’s Task Force on Climate-related
Financial Disclosures
76 Human Capital Management
77 Stakeholder Engagement
79 Corporate Governance
81 Board of Directors
84 Senior Leadership
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Corporate Social Responsibility and
Sustainability Commitments
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Other
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Genmab is committed to being a
sustainable and socially responsible
biotechnology company. This commitment
is anchored in our company’s purpose,
values and vision. Being socially responsible
is fundamental to the way we do business.
Our Core Purpose and Vision
How We Carry Out Our CSR Initiatives
In conducting our business, Genmab is fully committed to
complying with all applicable laws, codes, standards and guide-
lines. We also consider the well-being and vitality of our teams a top
priority and we actively seek to minimize our impact on the environ-
ment. We have high ethical standards and aim to conduct business
with companies and within countries that share our ethical commit-
ment including our support for the protection of internationally
proclaimed human rights. Genmab strives to only conduct clinical
trials in markets where a drug is planned to become available.
We continued to track trends, benchmark and examine our ESG
activities, policies and disclosures to build a sustainable organiza-
tion that meets ESG criteria of relevance to our business operations.
Genmab is committed to transparency and continued improvement
of our climate disclosures. In 2021, we committed to implement
the TCFD recommendations as we believe they provide a useful
framework to increase transparency on climate-related risks and
opportunities. This is our first qualitative and quantitative TCFD
disclosure. Please refer to “Genmab’s Task Force on Climate-
related Financial Disclosures” for more information. Genmab is
committed to reduce our environmental footprint, and as such, we
aim to provide additional disclosures on climate-related topics in
the future as we incorporate the TCFD recommendations into our
business. We continue to follow the SASB framework to disclose
critical measurements on ESG activities of relevance to our business
operations.
Genmab is a leading international biotechnology company that
creates, develops and commercializes antibody products to
transform the treatment of cancer.
Our commitment to CSR is anchored in our company’s core purpose
“to improve the lives of patients by creating and developing
innovative antibody products” and our vision that “by 2025 our
own product has transformed cancer treatment and we have
a pipeline of knock-your-socks-off antibodies.” Our vision
inspires and motivates us. Our teams are focused on developing
innovative therapies that will transform how people fight cancer,
changing it from a disease to be afraid of to a condition patients
may live with and overcome.
In 2021, we moved closer to realizing our vision. We received approval
in the U.S. for a medicine that provides an important treatment
option for patients with cervical cancer. We have a well-diversified
portfolio of products, product candidates and technologies, featuring
multiple approved antibody therapies that are marketed by partners,
and a growing proprietary pipeline composed of modified antibody
candidates including bispecific T-cell engagers and next-generation
immune checkpoint modulators, effector function enhanced anti-
bodies and antibody-drug conjugates. Our portfolio includes four
proprietary technologies which we use to create our own antibody
products and license to other biotech and pharma companies.
Genmab is committed to fundamentally transforming the treatment
of cancer and turning our deep understanding of antibody biology
into inventive technology platforms that fuel a transformative
pipeline of potentially first-in-class or best-in-class therapies. We
are committed to ensure our actions benefit our direct stakeholders
(patients, shareholders, collaboration partners and team members)
and society as a whole. With our core values and vision in mind,
being socially responsible is fundamental to the way we do business
at Genmab.
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Corporate Social Responsibility and
Sustainability Commitments
The Board of Directors and senior
leadership at Genmab are committed to
Genmab’s business-driven CSR strategy,
which focuses on four main areas:
Table of
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Statements
Other
Information
Science-Driven Health
Innovations for Patients
Employee Well-Being
and Vitality
Ethics and
Transparency
Environmental and
Community Sustainability
As we further execute on our CSR strategy and build programs that have an impact on our stakeholders,
we will be guided by the following tenets, which support our four CSR pillars:
1
2
3
4
5
6
7
We operate our business
with the utmost integrity
by always doing what is
right and incorporating
compliance, ethics and
transparency into our
business practices,
policies and procedures.
We maintain a highly
ethical organization by
promoting our Code of
Conduct to colleagues and
by engaging with partners
and suppliers committed to
the same level of ethics in
their operations. A Supplier
Code of Conduct further
allows us to reinforce our
expectations of those
who engage in business
with Genmab.
We aim to reduce
our impact on the
environment by refining
our processes and incor-
porating best practices
into our operations to
reduce our environmental
footprint, minimize
waste and decrease use
of hazardous material.
We engage with and
support the communities
in which we operate.
We monitor and evaluate
targets for ESG activities,
measure our impact and
communicate our progress.
We use our world-class
knowledge in antibody
biology and deep expertise
in innovative antibody
technology to develop
cancer treatments to
have a positive impact on
patients and society.
We care for our team
members’ health,
well-being, safety and
development and promote
a collaborative culture
that fosters passion for
innovation, integrity and
respect. We believe that
diversity, equity and
inclusion are fundamental
to achieving our vision.
We are committed to
championing a corporate
culture that accepts and
promotes uniqueness
and empowers each team
member to bring their
authentic self to work in a
safe, open and respectful
environment.
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CSR Governance
Our Approach
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The Nominating and Corporate Governance Committee of
Genmab’s Board of Directors oversees all aspects of Genmab’s
CSR efforts on behalf of the Board of Directors and provides
recommendations to the full Board of Directors regarding
corporate responsibility and sustainability matters. Our CSR
Committee, co-chaired by our CEO and SVP investor relations
and communications provides direction on CSR strategy and
associated policies and ensures that Genmab carries out our CSR
activities effectively and communicates them clearly and openly.
Genmab’s Corporate Responsibility Report discloses the main
highlights of our CSR work but does not reflect all our ongoing
initiatives and procedures.
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2021 Annual Report / Management’s Review / Corporate Responsibility
Guided by
Genmab’s
Core Values
CSR
Strong CSR Tenets
to Guide Strategy,
Programs and
Metrics
Aligned with ESG
Priorities and
Disclosures
Supported by the
Board of Directors
and Executive
Management
Underpinned
by Commitment
to UNSDGs
Corporate Social Responsibility and
Sustainability Commitments
Our Commitment to the United Nations
Sustainable Development Goals
Our humanity and interconnectedness
require every company, organization
and individual to play a role in the
sustainability of our society and our
planet. As a company rooted in science
and inspired by patients, Genmab
embraces its responsibility to society
and is proud to help advance the United
Nations SDGs. An internal assessment
in 2020 determined that our business
activities were most closely aligned with
Goals 3, 5 and 8. In 2021, we worked
to align our CSR activities to support
these goals. We will continue to assess
our business operations in relation to all
the SDGs.
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Other
Information
Goal 3:
Good Health and Well-Being:
Ensure healthy lives and promote
well-being for all at all ages
Genmab is dedicated to using science-driven
innovation to improve the lives of patients with
cancer and their families. In addition to the
resources dedicated to research and develop-
ment and to bring medicines to patients, we are
committed to our employees’ well-being and
vitality, and have benefits and programs in place
to support them. Additionally, we seek to support
and be part of health-related initiatives in the
communities where we operate.
Goal 5:
Gender Equality:
Achieve gender equality and empower
all women and girls
Genmab continues to be a leader in gender
diversity among our peers. We have a female
representation in “Director-level and above” of
51% and are proud that half of the members
of the Board of Directors are female, including
the Chair and Deputy Chair.
Goal 8:
Decent Work and Economic Growth:
Promote sustained, inclusive and
sustainable economic growth, full and
productive employment and decent
work for all
Genmab’s work is driven by innovation and
conducted by colleagues who are highly skilled
at, and dedicated to, their individual roles. We pay
all our team members a living wage and provide a
safe, inclusive and secure working environment.
Additionally, Genmab contributes to the life
sciences innovation ecosystem by collaborating
with academia, biotech and pharma companies,
and other innovators to advance therapies against
cancer and other diseases. We also contribute
to science, technology, engineering, and math-
ematics (STEM) education, mentoring programs
and other community efforts to help advance
education and professional development among
our communities.
Genmab’s statutory report on Corporate Responsibility for the financial year 2021 cf. Sections 99a, 99b and 107d of the Danish Financial
Statements Act can be found on the company’s website (https://ir.genmab.com/static-files/3a18c1bc-d3ee-401f-a721-c01704b23d98),
including additional information about policies, progress made during 2021 and expected activities for 2022.
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2021 Annual Report / Management’s Review / Corporate Responsibility
Genmab’s Task Force on Climate-related
Financial Disclosures
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Topic
Recommended Disclosures
Genmab’s Disclosures
Governance
Describe the board’s oversight of climate-related risks and
opportunities.
The Board of Directors Nominating and Corporate Governance Committee oversees climate-related issues as part of its
responsibility over all aspects of Genmab’s CSR strategy. The Committee and the Board of Directors receive biannual
updates on Genmab’s progress, related risks and opportunities.
Describe management’s role in assessing and managing
climate-related risks and opportunities.
The CSR Committee moves our CSR efforts forward and integrates ESG related matters to our business into our
strategic planning.
From 2022, the CSR Committee will receive updates on Genmab’s progress toward carbon reduction targets, climate-related
financial risk, relevant prevention and mitigation measures annually.
Climate-related financial risks and relevant prevention and mitigation measures will be reviewed and endorsed by the
Global Compliance and Risk Committee.
Genmab has conducted scenario analysis on the potential transition and physical risks and opportunities related to
climate change, at 1.5–2°C and 4°C of warming, across our value chain, in the short term (2030), and medium/long term
(2040/2050). Below is a brief summary of the key potential risks identified:
Description of potential risks identified 1.5–2°C, short term:
― Transition risk resulting from emerging certification, regulation and carbon taxation, pricing and tariffs, and related costs
of compliance and the switch to low carbon materials and technologies
― Transition risk resulting from increased focus of investors and regulators on ESG performance in investment decision
making, increasingly connecting access to capital and investment to ESG and climate performance
― Transition risk resulting from shift in consumer preferences and talent attraction criteria toward climate and
responsibility
― Physical risk of disruption of supply chains due to changes in weather patterns and extreme weather events
― Physical risk resulting from more frequent and severe heat waves, leading to increased cooling costs
Description of potential risks identified 1.5–2°C, medium/long term
― Physical risk of disruption of supply chains and operations due to changes in weather patterns and increase in frequency
of extreme weather events
― Physical risk resulting from more frequent and severe heat waves, leading to increased cooling costs
― Physical risk resulting from coastal flooding, potentially disrupting operations and the supply chain
Strategy
Describe the climate-related risks and opportunities the
organization has identified over the short, medium and
long term.
Describe the impact of climate-related risks and
opportunities on the organization’s businesses, strategy
and financial planning.
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2021 Annual Report / Management’s Review / Corporate Responsibility
Genmab’s Task Force on Climate-related Financial Disclosures (TCFD)
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Topic
Recommended Disclosures
Genmab’s Disclosures
Strategy
(continued)
Describe the climate-related risks and opportunities the
organization has identified over the short, medium and
long term.
Description of potential risks identified 4°C, short term
― Physical risk of disruption of supply chains, acute limited supply, and increased cost of raw materials due to changes in
weather patterns and extreme weather events
Describe the impact of climate-related risks and
opportunities on the organization’s businesses, strategy
and financial planning.
― Physical risk resulting from frequent and severe heat waves, leading to increased cooling costs
― Physical risk of disruption of supply chain, operations and distribution, resulting from increased acute flooding
Description of potential risks identified 4°C, medium/long term
― Transition risk resulting from fragmented regulatory efforts to curb runaway climate change through cost of compliance
with carbon taxation, pricing, etc.
― Physical risk resulting from acute, severe and frequent extreme weather events, leading to disruption of operations,
supply chain and distribution, damage to physical assets and inventory, as well as increase in raw materials cost and
insurance costs
― Physical risk resulting from acute and severe heat waves, leading to instability of supply chains, increased energy costs
for cooling and loss of inventory
― Physical risk resulting from sea level rise and coastal flooding, leading to disruption of operations and supply chains,
damage to physical assets, inventory
Brief summary of the key potential climate-related opportunities:
Description of potential opportunities identified 1.5–2°C and 4°C
― Cost savings from the use of new technologies, more energy efficient/low carbon production and distribution
― Cost savings and reduced exposure to resource and water scarcity through, for instance, the use of recycling
― Increase resilience, adaptation and cost savings from efficient and green buildings
― Cost savings and lowered exposure to carbon pricing and other regulations
― Reputational gains with stakeholders and potential employees from focus on climate-related topics
Describe the impact of climate-related risks and
opportunities on the organization’s businesses, strategy
and financial planning.
Climate-related risks and opportunities identified will be considered and integrated as part of Genmab’s ERM, financial
planning and strategy. To play our part in mitigating the physical impacts of climate change and curbing warming, Genmab
will commit to a Science Based Target, to reduce our greenhouse gas (GHG) emissions in line with the Paris Agreement.
Describe the resilience of the organization’s strategy, taking
into consideration different climate-related scenarios,
including a 2°C or lower scenario.
Genmab has conducted qualitative climate-related scenario analysis. Four scenarios spanning 1.5–2°C and 4°C of warming
were developed based on Intergovernmental Panel on Climate Change, International Energy Agency and other sources, and
Genmab’s risks and opportunities across the value chain in the short, medium/long term were assessed.
In 2022/2023, Genmab will further assess the resilience of our corporate strategy in the climate-related scenarios.
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2021 Annual Report / Management’s Review / Corporate Responsibility
Genmab’s Task Force on Climate-related Financial Disclosures (TCFD)
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Topic
Recommended Disclosures
Genmab’s Disclosures
Risk
Management
Describe the organization’s processes for identifying and
assessing climate-related risks.
In 2021, Genmab conducted climate-related risk assessment and scenario analysis to identify key risks and opportunities.
The risks were assessed through stakeholders engagement and interviews.
Describe the organization’s processes for managing climate-
related risks.
Climate-related risks identified will be considered as part of our Enterprise Risk Management program, and responsibility
for monitoring, prevention and mitigation will be cascaded to relevant functions within Genmab.
Describe how processes for identifying, assessing and
managing climate-related risks are integrated into the
organization’s overall risk management.
Metrics and
Targets
Disclose the metrics used by the organization to assess
climate-related risks and opportunities in line with its
strategy and risk management process.
Genmab reports on Scope 1 and 2 GHG emissions in line with the GHG Protocol.
Genmab will develop metrics related to business continuity and natural disaster recovery. These may include, for instance,
suppliers assessed/engaged on climate and climate risk topics, etc.
Disclose Scope 1, Scope 2 and, if appropriate, Scope 3 GHG
emissions and the related risks.
Genmab’s Scope 1 and 2 emissions total 638.7 tonnes CO2e in 2021. Emissions reductions will contribute to the mitigation
of the transition risk of carbon taxes, pricing and tariffs.
Describe the targets used by the organization to manage
climate-related risks and opportunities and performance
against targets.
In connection with our intent to commit to and set a Science Based Target, Genmab will begin to inventory our Scope 3
GHG emissions.
Genmab intends to commit to and set a Science Based Target to reduce our emissions in line with the Paris Agreement goals.
We calculated our Scope 1 and 2 emissions in accordance with
the global standard for carbon accounting, the GHG Protocol. This
calculation will serve as Genmab’s starting point in establishing
the baseline upon which to determine climate ambitions, targets,
and emissions reductions. While our Scope 1 and 2 emissions are
limited, we also made a first assessment of certain aspects of our
Scope 3 emissions. In 2022, we aim to further formalize the total
greenhouse gas emissions mapping.
Carbon Emission
Total Scope 1 emissions (tCO2e)
Total Scope 2 emissions (tCO2e)
Total Scope 1 & 2 emissions (tCO2e)
Electricity Consumption and Renewables
Electricity consumption (MWh)
Share renewables
2021
341.2
297.5
638.7
2021
2,925
83%
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2021 Annual Report / Management’s Review / Corporate Responsibility
Human Capital Management
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Employees are Genmab’s most important resource
and we strive to attract and retain the most qualified
people to fulfill our core purpose. Genmab’s goal is to
develop and retain value in our own products which
could one day transform cancer treatment. At Genmab,
we have four culture pillars that inspire team members
in their everyday work.
Teamwork and respect are central pillars of Genmab’s culture,
and we therefore ensure an inclusive, open and supportive
professional work environment across our international
locations. We believe that fostering workplace diversity across
social, educational, cultural, national, age and gender lines
is a prerequisite for the continued success of the company.
We are committed to diversity at all levels of the company and
strive to recruit employees with the right skills and competencies,
regardless of gender, age, ethnicity and other differences.
Skill, knowledge, experience and employee motivation are
essential to Genmab as a biotech company. The ability to
organize our highly skilled and very experienced colleagues
at all levels of the organization into interactive teams is a key
factor in achieving our goals and ensuring Genmab’s success.
Genmab’s teams are very experienced in the pharmaceutical and
biotechnology industry.
Genmab’s Culture Pillars
Patients
Come First
We are committed to
making a positive impact
for patients
Rooted
in Science
We hypothesize and
experiment to seek
innovative solutions,
no matter our role
Act
with Courage
We speak up, empower
each other, and embrace
change and grow
We are
‘One Genmab’
We respect and
celebrate our differences
while working as
One Team
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2021 Annual Report / Management’s Review / Corporate Responsibility
Key Employee Information
Male/Female Ratios
2021
2020
Male
Female
Male
Female
Genmab Group
Director level and above
Below director level
Annual promotions*
42%
49%
38%
N/A
58%
51%
62%
N/A
42%
51%
38%
53%
58%
49%
62%
47%
* The timing of our promotion process changed to align with our performance
management cycle for the 2021 performance year; therefore, there are no
promotion percentages disclosed for 2021.
Other Employee Information
FTE at the end of the year
Research and development FTE
Administrative FTE
FTE in Denmark at the end of the year
FTE in Netherlands at the end of the year
FTE in US at the end of the year
FTE in Japan at the end of the year
Employee turnover1
Employee absence2
2021
1,212
927
285
312
437
420
43
6%
2%
2020
781
647
134
210
326
227
18
8%
2%
1. Employee turnover percentage is calculated by the FTE voluntarily leaving since
the beginning of the year divided by the average FTE
2. The rate of absence is measured as absence due to the employee’s own
illness, pregnancy-related sick leave and occupational injuries and illnesses
compared with a regional standard average of working days in the year, adjusted
for holidays
Stakeholder Engagement
As an international dual-listed company,
Genmab has many stakeholders with an interest
into how we conduct our business. We can only
be successful if we continually engage and
maintain relationships with these stakeholders.
This is accomplished in a variety of ways,
including direct interactions, participation in
industry groups and employee engagement
surveys. Some of Genmab’s key stakeholder
groups and the ways we interact with them are
highlighted here.
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Our Research Collaborators
Genmab collaborates with a wide range of parties
from large pharmaceutical companies to academic
institutions. These are not collaborations with just any
partner, but with particularly complementary partners in
terms of technologies, capabilities and knowledge.
Why are they important to us?
Collaborations across the ecosystem of pharma, biotech and
academia help us to create innovative next-generation antibody
products and potentially make them available to patients faster.
Key areas of our strategy
• Focus on core competence
• Turn science into medicine
• Build a profitable and successful biotech
How do we engage with them?
Our methods of engagement vary from co-development of
programs, licensing of our technology platforms, involvement in
clinical trials and indirectly, through our work with industry groups.
Our list of research collaborations is extensive. In addition to large
pharmaceutical and biotechnology companies, we work with inno-
vative companies like Tempus, which has built the world’s largest
library of clinical and molecular data. We collaborated on the
tisotumab vedotin innovaTV 204 study, which became the basis
for the U.S. FDA approval of tisotumab vedotin as Tivdak, with
the European Network of Gynecological Oncological Trial Groups
and Gynecologic Oncology Group, and we belong to industry
groups such as Holland Bio, BioNJ and the Confederation of
Danish Industry.
Our People
The health, well-being, safety and development of
Genmab’s team members is a top priority for the
organization.
Why are they important to us?
Our talented teams are the cornerstone of our success and funda-
mental to achieving our 2025 Vision. We believe that an engaged,
inclusive and diverse workplace inspires our employees and is
essential to our future.
Key area of our strategy
• Focus on core competence
• Turn science into medicine
• Build a profitable and successful biotech
How do we engage with them?
We create an atmosphere that fosters individual empowerment and
development via an environment that allows people to achieve their
maximum potential and transform their skills into real value for
patients.
In 2021, we implemented intensive manager and leadership
development programs and launched a Diversity, Equity and
Inclusion (DE&I) Council and held multiple diversity and inclusion
company- wide townhall events. In collaboration with the University
of Copenhagen Department of Anthropology, we are sponsoring a
two-year post-doctorate project that will focus on strengthening
diversity and inclusion at Genmab.
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2021 Annual Report / Management’s Review / Corporate Responsibility
Stakeholder Engagement
Patient Advocacy Organizations
With our first medicine on the market we have an
obligation to engage with patient advocates to ensure
we are providing as much support as possible to
patients in need.
Why are they important to us?
Patients come first at Genmab, and transforming the lives of cancer
patients is our purpose. Supporting patient advocacy organizations
is an important way in which Genmab can positively impact the lives
of patients.
Key area of our strategy
• Focus on core competence
• Turn science into medicine
• Build a profitable and successful biotech
How do we engage with them?
Over the course of the past few years we have actively sought out
patient advocacy groups both to provide our financial support for
their efforts and programs and also to bring them to our locations
for educational events with the Genmab team.
Our vision is to establish Genmab as a genuine and authentic
leader for the patient voice. In 2022 we plan to increase our patient
advocacy engagement as we work toward this goal. In 2021 we
hired a Director of Patient Advocacy and provided support for
multiple patient-focused organizations including the Danish Cancer
Society and the Children’s Health Fund. Due to our efforts we
received the 2021 Corporate Achievement Award from CancerCare,
a leading national non-profit organization that provides free support
services to people impacted by cancer.
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Our Communities
Our team members actively engage in the communities
in which we operate.
Why are they important to us?
As part of Genmab’s ongoing commitment to CSR we aim to be good
citizens not only of the world but of the local communities in which
we have our facilities.
Our Shareholders and Investors
Genmab has a diverse shareholder base, with investors
in the Company coming from across the spectrum of
both size and location.
Why are they important to us?
The support of Genmab’s investors is essential to the success of
the Company as we grow into a fully integrated biotech innovation
powerhouse.
Key area of our strategy
• Build a profitable and successful biotech
How do we engage with them?
Key area of our strategy
• Build a profitable and successful biotech
We implemented a number of community-based engagement
activities in 2021, including the launch of a Community@Genmab
portal to support employee giving programs. As part of our social
commitment Genmab colleagues also work to solve problems in
their community using their specialized expertise.
How do we engage with them?
We communicate in an open and transparent way about our
business, financial results, development programs and scientific
results through company announcements, investor meetings and
company presentations.
Genmab’s New Jersey office was also awarded the 2021 New Good
Neighbor Award by NJ Business Magazine for making New Jersey a
better place to live and work both through job creation and through
our efforts in the community, including the support of numerous
local relief efforts during the COVID-19 pandemic. In an unprece-
dented all digital collaboration, Genmab and the Hubrecht Institute,
along with later additional partners, developed the STRIP-Robot
(Systematic Testing using Robotics and Innovation in Pandemics).
This robot, nicknamed “The Beast,” rapidly processes large numbers
of COVID-19 PCR tests, outperforming any other robot known, and at
a lower cost per test than other methods. The dramatically increased
testing capacity benefits our community in the Netherlands both
now, during the COVID-19 pandemic, and in any future pandemics.
This remarkable achievement was also the winner of the prestigious
Netherlands Prix Galien Excellence COVID-19 Award.
We maintain a dialogue with our shareholders, investors and other
stakeholders by participating in investor meetings and company
presentations, allowing the individual stakeholders to meet and
communicate with the Company. The Board of Directors also partici-
pates in investor meetings on an ad hoc basis, e.g. as part of regular
corporate governance outreach campaigns to our shareholders, as
well as their representatives and proxy advisors, to gain insight in
the perspective of our shareholders and to discuss their concerns.
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2021 Annual Report / Management’s Review / Corporate Responsibility
Corporate Governance
Genmab works diligently to improve its guidelines
and policies for corporate governance, taking
into account the recent trends in international
and domestic requirements and recommen-
dations. Genmab’s commitment to corporate
governance is based on ethics and integrity and
forms the basis of its effort to strengthen the
confidence that existing and future shareholders,
partners, employees and other stakeholders have
in Genmab. The role of shareholders and their
interaction with Genmab is important. Genmab
believes that open and transparent communica-
tion is necessary to maintain the confidence of
Genmab’s shareholders and achieves this through
company announcements, investor meetings and
company presentations. Genmab is committed
to providing reliable and transparent information
about its business, financial results, development
programs and scientific results in a clear and
timely manner.
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
All Danish companies listed on the Nasdaq Copenhagen exchange
are required to disclose in their annual reports how they address
the Recommendations for Corporate Governance issued by the
Committee on Corporate Governance in December 2020 (the
“Recommendations”), applying the “comply-or-explain” principle.
Genmab follows the vast majority of the Recommendations,
although a specific sub-area has been identified where Genmab’s
corporate governance principles differ from the Recommendations:
• The Recommendations provide that according to a company’s
takeover contingency procedures, the board of directors abstains
from countering any takeover bids by taking actions that seek
to prevent the shareholders from deciding on the takeover bid,
without the approval of the general meeting. Genmab does not
have such a restriction in its takeover contingency procedures
and retains the right in certain circumstances to reject takeover
bids without consulting the shareholders. Genmab believes this
provides the Board of Directors with the needed flexibility to best
respond to takeover bids and to negotiate with bidders; retaining
this flexibility helps the Board of Directors meet its objectives in
protecting and creating value in the interest of the shareholders.
Actions will be determined on a case-by-case basis with due
consideration to the interests of the shareholders and other
stakeholders.
Genmab publishes its statutory report on Corporate Governance
for the financial year 2021 cf. Article 107b of the Danish Financial
Statements Act (“Lovpligtig redegørelse for virksomhedsledelse
jf. årsregnskabslovens § 107 b”) on the Company’s website,
including a detailed description of the Board of Directors’ consider-
ation in respect of all the Recommendations. The statutory report
on Corporate Governance can be found on Genmab’s website
https://ir.genmab.com/corporate-governance .
The Board of Directors
The Board of Directors plays an active role within Genmab in setting
the strategies and goals for Genmab and monitoring the operations
and results of the company. Board duties include establishing
policies for strategy, accounting, organization and finance and the
appointment of Executive Management members. The Board of
Directors also assesses Genmab’s capital and share structure and
is responsible for approving share issues and the grant of warrants
and RSUs.
The Board of Directors has established an annual process whereby
the Board of Directors’ performance is assessed through self-
evaluation to verify that the Board of Directors is capable of fulfilling
its function and responsibilities. When performing these evalua-
tions external assistance is obtained every year. The outcome of the
Board of Directors’ 2021 self-assessment was positive with only
minor areas for improvement identified.
Board Committees
To support the Board of Directors in its duties, the Board of
Directors has established and appointed a Compensation
Committee, an Audit and Finance Committee, a Nominating and
Corporate Governance Committee and a Scientific Committee.
These committees are charged with reviewing issues pertaining
to their respective fields that are due to be considered at Board
of Directors’ meetings. Written charters specifying the tasks
and responsibilities for each of the committees are available on
Genmab’s website www.genmab.com.
For more details on the work, composition and evaluation of the
Board of Directors and its committees, reference is made to the
statutory report on Corporate Governance.
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2021 Annual Report / Management’s Review / Corporate Responsibility
Corporate Governance
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Remuneration Policy
Disclosure Regarding Change of Control
A Remuneration Policy applying to the compensation of members of
the Board of Directors and the Executive Management of Genmab
A/S has been prepared in accordance with Sections 139 and 139a
of the Danish Companies Act and considered and adopted by the
2021 Annual General Meeting pursuant to the Danish Companies
Act (in Danish “Selskabsloven”).
The Danish Financial Statements Act (Section 107a) contains rules
relating to listed companies with respect to certain disclosures
that may be of interest to the stock market and potential takeover
bidders, in particular in relation to disclosure of change of control
provisions.
More information on share capital is included in note 4.7. Unless
otherwise provided in the Danish Companies Act, the adoption of
any resolution to amend Genmab A/S’ articles of association shall
be subject to the affirmative vote of not less than two thirds of the
votes cast, as well as of the voting share capital represented at the
general meeting. Genmab A/S’ entire articles of association can be
found on our website www.genmab.com.
For information on change of control clauses in our collaboration,
development and license agreements as well as certain service
agreements with the Executive Management and employees,
please refer to note 5.5. Change of control clauses related to our
warrant and RSU programs are outlined in note 4.6.
The Remuneration Policy contains an exhaustive description
of the remuneration components for members of the Board of
Directors and the Executive Management and includes the reasons
for choosing the individual components of the remuneration and
a description of the criteria on which the balance between the
individual components of the remuneration is based. The latest
version, which was adopted by the General Meeting in 2021, can
be downloaded from Genmab’s website https://ir.genmab.com/
governance/compensation#content.
Compensation Report
In accordance with the Recommendations, Genmab has prepared
a compensation report for the financial year 2021 that includes
information on the total remuneration received by each member
of the Board of Directors and the Executive Management from
Genmab A/S and other Group companies for the last three years,
including information on the most important content of retention
and resignation arrangements and the correlation between the
remuneration and company strategy and relevant related goals
(the “Compensation Report”). The Compensation Report can be
found on Genmab’s website https://ir.genmab.com/governance/
compensation#content.
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2021 Annual Report / Management’s Review / Corporate Responsibility
Board of Directors
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Deirdre P. Connelly
Hispanic/American, 61, Female
Pernille Erenbjerg
Danish, 54, Female
Anders Gersel Pedersen, M.D., Ph.D.
Danish, 70, Male
Board Chair (Independent, elected by the General Meeting);
Chair of the Nominating and Corporate Governance Committee,
Member of the Compensation Committee and the Audit and
Finance Committee
Deputy Chair (Independent, elected by the General Meeting);
Chair of the Audit and Finance Committee, Member of the
Nominating and Corporate Governance Committee
First elected 2015, current term expires 2022
Board Member (Non-independent, elected by the General
Meeting); Chair of the Compensation Committee, Member of
the Nominating and Corporate Governance Committee and the
Scientific Committee
First elected 2017, current term expires 2022
First elected 2003, current term expires 2022
Special Competencies
More than 30 years’ experience as a corporate leader and
extensive experience in corporate governance as a board
member. Comprehensive experience with business turnaround,
corporate culture transformation, product launch and talent
development. Successfully directed the launch of more than 20
new pharmaceutical drugs. Former President, North America
Pharmaceuticals for GlaxoSmithKline.
Current Board Positions
Member: Lincoln Financial Corporation1, Macy’s Inc.2
1. Chair of Corporate Governance Committee, Member of Audit Committee
2. Chair of Nominating and Governance Committee, Member of Compensation and
Management Development Committee
Special Competencies
Senior executive management and broad business experience
from the telecoms, media and tech industries. Extensive expe-
rience with operation and strategic transformation of large
and complex companies, including digital transformations and
digitally based innovation. ESG experience from executive and
non-executive positions. Comprehensive all-around background
within finance, including extensive exposure to public and
private equity and debt investors. Certified Public Accountant
background (no longer practicing). Responsible for major trans-
formation processes in complex organizations including M&A.
Former CEO and President of TDC Group A/S. Due to her expe-
rience and background within accounting, Pernille Erenbjerg
qualifies as an audit committee financial expert.
Current Board Positions
Chair: Nordic Entertainment Group (NENT)
Deputy Chair: Millicom1
Member: RTL Group2, GlobalConnect
1. Chair of Compensation Committee
2. Member of Audit Committee
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2021 Annual Report / Management’s Review / Corporate Responsibility
Special Competencies
Business and management experience in the pharmaceutical
industry, including expertise in clinical research, develop-
ment, regulatory affairs and product life cycle management.
Former Executive Vice President of Research & Development of
H. Lundbeck A/S.
Current Board Positions
Chair: Aelis Farma S.A.S.
Deputy Chair: Bavarian Nordic A/S1
Member: Hansa Biopharma AB2, Bond 2 Development 2 GP Limited
1. Member of Nomination and Compensation Committee, Member of Science,
Technology & Investment Committee
2. Chair of Scientific Committee, Member of Remuneration Committee
Board of Directors
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Paolo Paoletti, M.D.
Italian (U.S. Citizen), 71, Male
Rolf Hoffmann
German, 62, Male
Mijke Zachariasse, Ph.D.
Dutch, 48, Female
Board Member (Independent, elected by the General Meeting);
Chair of the Scientific Committee, Member of the Compensation
Committee
Board Member (Independent, elected by the General Meeting);
Member of the Audit and Finance Committee, and the Scientific
Committee
Board Member (Non-independent, elected by the employees)
First elected 2019, current term expires 2022
First elected 2015, current term expires 2022
First elected 2017, current term expires 2022
Special Competencies
Extensive experience in research, development and commer-
cialization in the pharmaceutical industry. Successfully
conducted submissions and approvals of new cancer drugs
and new indications in the U.S. and in Europe. Responsible for
seven new medicines for cancer patients during his 10 years at
GlaxoSmithKline and one new cancer medicine during his time
at Eli Lilly.
Special Competencies
Extensive international management experience with expertise
in creating and optimizing commercial opportunities in global
markets. Additional expertise in P&L management, governance
and Corporate Integrity Agreement Management, compliance and
organizational efficiency. Over 20 years’ experience in the inter-
national pharmaceutical and biotechnology industries at Eli Lilly
and Amgen.
Special Competencies
Broad experience in people and business management in the
natural sciences sector. Specific expertise in building strategic
partnerships across sectors, financial and fund management,
and setting research strategies in the academic sector.
Current Position, including Managerial Positions
Senior Director, Head of Antibody Research Materials at Genmab
Current Position, Including Managerial Positions
CEO for GammaDelta Therapeutics Limited
Current Board Positions
Member: GammaDelta Therapeutics Limited, PsiOxus
Therapeutics Limited
Current Position, Including Managerial Positions
Adjunct Professor Strategy and Entrepreneurship, University of
North Carolina Business School
Current Board Positions
Chair: Biotest AG
Member: EUSA Pharma, Inc.1, Paratek Pharmaceuticals, Inc.2,
IDT Biologika, Semdor Pharma
1. Chair of Remuneration Committee
2. Member of Nominating and Corporate Governance Committee
82
2021 Annual Report / Management’s Review / Corporate Responsibility
Board of Directors
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Peter Storm Kristensen
Danish, 47, Male
Rima Bawarshi Nassar
Palestinian-Lebanese (U.S. Citizen), 68, Female
Board Member (Non-independent, elected by the employees)
Board Member (Non-independent, elected by the employees)
First elected 2016, current term expires 2022
First elected 2020, current term expires 2022
Special Competencies
Broad legal experience within the pharmaceutical industry with
specialty in corporate law, securities law, human resources law
as well as drafting and negotiating contracts in general.
Current Position, Including Managerial Positions
Director, Legal Lead Corporate at Genmab
Special Competencies
Extensive expertise in global regulatory affairs and solid under-
standing and knowledge of drug research and development.
Over 30 years’ experience in international pharmaceutical and
biotechnology industries in various therapeutic areas and roles.
Successful product submissions and approvals with optimal
labeling. Experience in strategic leadership, management and
talent development.
Current Position, including Managerial Positions
Vice President, Head of Global Regulatory Affairs — Oncology
83
2021 Annual Report / Management’s Review / Corporate Responsibility
Senior Leadership
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Jan G. J. van de Winkel, Ph.D.
Dutch, 60, Male
Anthony Pagano
American, 44, Male
Judith Klimovsky, M.D.
Argentinian (U.S. Citizen), 65, Female
Anthony Mancini
Canadian-Italian (U.S. Citizen), 51, Male
President & Chief Executive Officer
Special Competencies
Extensive antibody creation and develop-
ment expertise, broad knowledge of the
biotechnology industry and executive manage-
ment skills.
Current Board Positions
Chair: Hookipa Pharma
Member: Leo Pharma, Omega Alpha SPAC
Executive Vice President & Chief
Financial Officer
Executive Vice President & Chief
Development Officer
Executive Vice President & Chief
Operating Officer
Special Competencies
Significant knowledge and experience in the
life sciences industry particularly as it relates
to corporate finance, corporate development,
strategic planning, general management,
treasury, accounting and corporate governance.
Special Competencies
Extensive expertise in oncology drug devel-
opment from early clinical stages through to
marketing approval, experience in clinical
practice and leading large teams in pharma-
ceutical organizations.
Special Competencies
Significant expertise and experience in the life
sciences industry across strategic and oper-
ational leadership roles; commercialization
& launch, strategic planning, partnerships/
alliances, general management, leading large
Biopharma P&Ls and organizations.
Current Board Positions
Member: Bellicum Pharmaceuticals
84
2021 Annual Report / Management’s Review / Corporate Responsibility
Senior Leadership
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Tahamtan Ahmadi, M.D., Ph.D.
Iranian-German (U.S. Citizen), 49, Male
Birgitte Stephensen
Danish, 61, Female
Martine J. van Vugt, Ph.D.
Dutch, 51, Female
Christopher Cozic
American, 44, Male
Executive Vice President & Chief Medical
Officer, Head of Experimental Medicines
Senior Vice President, Head of Global IPR
& Legal
Senior Vice President, Corporate Strategy
and Planning
Special Competencies
Significant expertise in global regulatory
and clinical drug development across entire
spectrum from pre-IND to life cycle manage-
ment; drug discovery and translational
research.
Special Competencies
Intellectual property and legal expertise in the
biotechnology field.
Special Competencies
Extensive knowledge and experience in
portfolio, project and alliance management,
identifying and leading corporate strategic
initiatives, and business development oper-
ations and strategy related to corporate
transactions and licensing.
Senior Vice President, Global Human Resources
Special Competencies
Expertise in strategic leadership, organization
design, human resource management, policy
development, employee relations, organiza-
tional development, and a heavy concentration
in all aspects of corporate growth and
expansion.
85
2021 Annual Report / Management’s Review / Corporate Responsibility
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Financial Statements
87 Financial Statements for the
Genmab Group
133 Financial Statements of the
Parent Company
149 Directors’ and Management’s
Statement on the Annual Report
150 Independent Auditor’s Reports
The financial statements in the 2021
Annual Report are grouped into the
following sections: Primary Statements;
Basis of Presentation; Results for the Year;
Operating Assets and Liabilities; Capital
Structure, Financial Risk and Related Items;
and Other Disclosures.
Each note to the financial statements
includes information about the accounting
policies applied and significant manage-
ment judgements and estimates in addition
to the financial numbers.
Financial
Statements
86
2021 Annual Report / Financial Statements
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Table of Contents
Primary Statements
88 Consolidated Statements of Comprehensive Income
Section 3
Operating Assets and Liabilities
Section 5
Other Disclosures
89 Consolidated Balance Sheets
104 3.1 Intangible Assets
125 5.1 Remuneration of the Board of Directors and
90 Consolidated Statements of Cash Flows
106 3.2 Property and Equipment
91 Consolidated Statements of Changes in Equity
107 3.3 Leases
Section 1
Basis of Presentation
92 1.1 Nature of the Business and Accounting Policies
94 1.2 New Accounting Policies and Disclosures
94 1.3 Management’s Judgements and Estimates
under IFRS
Section 2
Results for the Year
96 2.1 Revenue
98 2.2 Information about Geographical Areas
99 2.3 Staff Costs
101 2.4 Corporate and Deferred Tax
103 2.5 Profit Per Share
109 3.4 Other Investments
109 3.5 Receivables
110 3.6 Provisions
110 3.7 Deferred Revenue
111 3.8 Other Payables
Section 4
Capital Structure, Financial Risk and
Related Items
112 4.1 Capital Management
112 4.2 Financial Risk
115 4.3 Financial Assets and Liabilities
116 4.4 Marketable Securities
117 4.5 Financial Income and Expenses
118 4.6 Share-Based Instruments
123 4.7 Share Capital
Executive Management
128 5.2 Related Party Disclosures
128 5.3 Company Overview
128 5.4 Commitments
128 5.5 Contingent Assets and Contingent Liabilities
129 5.6 Fees to Auditors Appointed at the Annual
General Meeting
130 5.7 Adjustments to Cash Flow Statements
130 5.8 Collaborations and Technology Licenses
132 5.9 Subsequent Events
87
2021 Annual Report / Financial Statements / Group
Primary Statements
Consolidated
Statements of
Comprehensive
Income
Income Statement
(DKK million)
Revenue
Research and development expenses
Selling, general and administrative expenses
Operating expenses
Operating profit
Financial income
Financial expenses
Net profit before tax
Corporate tax
Net profit
Basic net profit per share
Diluted net profit per share
Statement of Comprehensive Income
Net profit
Other comprehensive income:
Amounts which may be re-classified to the income statement:
Adjustment of foreign currency fluctuations on subsidiaries
Total comprehensive income
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Note
2.1, 2.2
2.3, 3.1, 3.2
2.3, 3.2
4.5
4.5
2.4
2.5
2.5
2021
8,482
(4,181)
(1,283)
(5,464)
3,018
1,667
(702)
3,983
(975)
3,008
46.00
45.54
2020
10,111
(3,137)
(661)
(3,798)
6,313
1,149
(1,558)
5,904
(1,146)
4,758
73.00
72.21
2019
5,366
(2,386)
(342)
(2,728)
2,638
228
(7)
2,859
(693)
2,166
34.40
34.03
3,008
4,758
2,166
27
3,035
(44)
4,714
6
2,172
88
2021 Annual Report / Financial Statements / Group (DKK million)
Assets
Intangible assets
Property and equipment
Right-of-use assets
Receivables
Deferred tax assets
Other investments
Total non-current assets
Corporate tax receivable
Receivables
Marketable securities
Cash and cash equivalents
Total current assets
Total assets
Shareholders’ Equity and Liabilities
Share capital
Share premium
Other reserves
Retained earnings
Total shareholders’ equity
Provisions
Lease liabilities
Deferred revenue
Other payables
Total non-current liabilities
Lease liabilities
Deferred revenue
Other payables
Total current liabilities
Total liabilities
Total shareholders’ equity and liabilities
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Note
December 31, 2021
December 31, 2020
2.2, 3.1
2.2, 3.2
2.2, 3.3
2.2, 3.5
2.4
3.4
2.4
3.5
4.2, 4.4
4.7
4.7
3.6
3.3
3.7
3.8
3.3
3.7
3.8
254
621
354
27
264
371
1,891
31
3,367
10,381
8,957
22,736
24,627
66
12,029
81
10,020
22,196
13
363
487
–
863
62
26
1,480
1,568
2,431
24,627
338
453
283
20
177
1,081
2,352
249
2,463
8,819
7,260
18,791
21,143
66
11,894
54
7,107
19,121
4
277
487
1
769
42
26
1,185
1,253
2,022
21,143
Primary Statements
Consolidated
Balance Sheets
89
2021 Annual Report / Financial Statements / Group Primary Statements
Consolidated
Statements of
Cash Flows
90
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
(DKK million)
Note
2021
4.5
5.7
5.7
3.3
3.1
3.2
3.4
3.4
3.3
Cash flows from operating activities:
Net profit before tax
Reversal of financial items, net
Adjustment for non-cash transactions
Change in operating assets and liabilities
Cash flows from operating activities before financial items
Interest received
Interest elements of lease payments
Interest paid
Corporate taxes paid
Net cash provided by operating activities
Cash flows from investing activities:
Investment in intangible assets
Investment in tangible assets
Marketable securities bought
Marketable securities sold
Other investments bought
Other investments sold
Net cash (used in) investing activities
Cash flows from financing activities:
Warrants exercised
Shares issued for cash
Costs related to issuance of shares
Principal elements of lease payments
Purchase of treasury shares
Payment of withholding taxes on behalf of employees on net settled RSUs
Net cash provided by (used in) financing activities
Changes in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Exchange rate adjustments
Cash and cash equivalents at the end of the period
Cash and cash equivalents include:
Bank deposits
Short-term marketable securities
Cash and cash equivalents at the end of the period
3,983
(965)
526
(770)
2,774
208
(12)
–
(742)
2,228
–
(252)
(15,514)
14,469
(102)
438
(961)
135
–
–
(58)
(447)
(50)
(420)
847
7,260
850
8,957
8,661
296
8,957
2020
5,904
409
459
987
7,759
170
(9)
(11)
(1,476)
6,433
–
(307)
(12,414)
10,370
–
–
2019
2,859
(221)
291
(1,218)
1,711
111
(7)
(13)
(476)
1,326
(32)
(79)
(5,812)
3,940
–
–
(2,351)
(1,983)
140
–
–
(44)
–
(25)
71
4,153
3,552
(445)
7,260
5,054
2,206
7,260
65
3,873
(238)
(31)
–
(9)
3,660
3,003
533
16
3,552
2,884
668
3,552
2021 Annual Report / Financial Statements / Group Primary Statements
Consolidated
Statements of
Changes in Equity
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Share
capital
Share
premium
Translation
reserves
Retained
earnings
Shareholders’
equity
61
8,059
92
–
–
–
1
3
–
–
–
–
–
–
–
64
3,870
(238)
–
–
–
65
11,755
–
–
–
1
–
–
–
–
–
–
139
–
–
–
66
11,894
–
–
–
–
–
–
–
–
–
–
–
135
–
–
–
–
–
6
6
–
–
–
–
–
–
98
–
(44)
(44)
–
–
–
–
54
–
27
27
–
–
–
–
–
(198)
2,166
–
2,166
–
–
–
147
(9)
24
2,130
4,758
–
4,758
–
200
(25)
44
7,107
3,008
–
3,008
–
(447)
310
(50)
92
8,014
2,166
6
2,172
65
3,873
(238)
147
(9)
24
14,048
4,758
(44)
4,714
140
200
(25)
44
19,121
3,008
27
3,035
135
(447)
310
(50)
92
(DKK million)
Balance at December 31, 2018
Net profit
Other comprehensive income
Total comprehensive income
Transactions with owners:
Exercise of warrants
Shares issued for cash
Expenses related to capital increases
Share-based compensation expenses
Net settlement of RSUs
Tax on items recognized directly in equity
Balance at December 31, 2019
Net profit
Other comprehensive income
Total comprehensive income
Transactions with owners:
Exercise of warrants
Share-based compensation expenses
Net settlement of RSUs
Tax on items recognized directly in equity
Balance at December 31, 2020
Net profit
Other comprehensive income
Total comprehensive income
Transactions with owners:
Exercise of warrants
Purchase of treasury shares
Share-based compensation expenses
Net settlement of RSUs
Tax on items recognized directly in equity
Balance at December 31, 2021
66
12,029
81
10,020
22,196
91
2021 Annual Report / Financial Statements / Group Section 1
Basis of
Presentation
These consolidated financial statements include Genmab A/S
(the parent company) and subsidiaries over which the parent
company has control. The Genmab consolidated Group is refer-
enced herein as “Genmab” or the “Company”.
This section describes Genmab’s financial accounting policies
including management’s judgements and estimates under
International Financial Reporting Standards (IFRS). New or
revised EU endorsed accounting standards and interpretations
are described, in addition to how these changes are expected to
impact the financial performance and reporting of Genmab.
Genmab describes the accounting policies in conjunction with
each note with the aim to provide a more understandable
description of each accounting area.
iXBRL Reporting
Genmab is required to file the Annual Report in the European
Single Electronic Format (ESEF) using the XHTML format and to
tag the primary consolidated financial statements using Inline
eXtensible Business Reporting Language (iXBRL). The iXBRL tags
comply with the ESEF taxonomy. Where a financial statement line
item is not defined in the ESEF taxonomy, an extension to the
taxonomy has been created. The annual report submitted to the
Danish Financial Supervisory Authority consists of the XHTML
document together with certain technical files, all included in a
file named 529900MTJPDPE4MHJ122-2021-12-31-en.zip.
92
1.1
Nature of the Business and
Accounting Policies
Genmab A/S is a publicly traded, international biotechnology
company that was founded in 1999 and specializes in the creation
and development of differentiated antibody therapeutics for the
treatment of cancer and other diseases. Genmab has four approved
products commercialized by third-parties, one approved product
that is jointly commercialized with a collaboration partner, a broad
clinical and preclinical product pipeline and proprietary next-
generation antibody technologies.
The consolidated financial statements have been prepared in
accordance with IFRS as issued by the International Accounting
Standards Board (IASB) and in accordance with IFRS as endorsed by
the EU and further requirements in the Danish Financial Statements
Act. The consolidated financial statements were approved by the
Board of Directors and authorized for issue on February 16, 2022.
Except as outlined in note 1.2, the financial statements have been
prepared using the same accounting policies as 2020.
Please refer to the overview below to see in which note/section the
detailed accounting policy is included.
Section 2 — Results for the Year
2.1 Revenue
2.2 Information about Geographical Areas
2.3 Staff Costs
2.4 Corporate and Deferred Tax
2.5 Result per Share
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Section 3 — Operating Assets and Liabilities
3.1 Intangible Assets
3.2 Property and Equipment
3.3 Leases
3.4 Other Investments
3.5 Receivables
3.6 Provisions
3.8 Other Payables
Section 4 — Capital Structure, Financial Risk and Related Items
4.3 Financial Assets and Liabilities
4.4 Marketable Securities
4.5 Financial Income and Expenses
Section 5 — Other Disclosures
5.5 Contingent Assets, Contingent Liabilities and Subsequent Events
Materiality
Genmab’s Annual Report is based on the concept of materiality and
the Company focuses on information that is considered material
and relevant to the users of the consolidated financial statements.
The consolidated financial statements consist of a large number
of transactions. These transactions are aggregated into classes
according to their nature or function and presented in classes of
similar items in the consolidated financial statements as required
by IFRS and the Danish Financial Statements Act. If items are indi-
vidually immaterial, they are aggregated with other items of similar
nature in the financial statements or in the notes.
The disclosure requirements are substantial in IFRS and for Danish
listed companies. Genmab provides these specific required
disclosures unless the information is considered immaterial to the
economic decision making of the readers of the financial statements
or not applicable.
2021 Annual Report / Financial Statements / Group Section 1 Basis of Presentation / 1.1 Nature of the Business and Accounting Policies
Section 1 Basis of Presentation / 1.1 Nature of the Business and Accounting Policies
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Consolidated Financial Statements
Foreign Currency
Statements of Cash Flows
The consolidated financial statements include Genmab A/S and
subsidiaries over which the parent company has control. The parent
controls a subsidiary when the parent is exposed to, or has rights
to, variable returns from its involvement with the subsidiary and
has the ability to affect those returns through its power to direct
the activities of the subsidiary. A Company overview is included
in note 5.3.
Genmab’s consolidated financial statements have been prepared
on the basis of the financial statements of the parent company and
subsidiaries — prepared under Genmab’s accounting policies — by
combining similar accounting items on a line-by-line basis. On
consolidation, intercompany income and expenses, intercompany
receivables and payables, and unrealized gains and losses on trans-
actions between the consolidated companies are eliminated.
The recorded value of the equity interests in the consolidated
subsidiaries is eliminated with the proportionate share of the
subsidiaries’ equity. Subsidiaries are consolidated from the date
when control is transferred to the Group.
The income statements for subsidiaries with a different functional
currency than Genmab’s presentation currency are translated into
Genmab’s presentation currency at average exchange rates, and the
balance sheets are translated at the exchange rate in effect at the
balance sheet date.
Exchange rate differences arising from the translation of foreign
subsidiaries shareholders’ equity at the beginning of the year and
exchange rate differences arising as a result of foreign subsidiaries’
income statements being translated at average exchange rates are
recorded in translation reserves in shareholders’ equity.
Functional and Presentation Currency
The financial statements have been prepared in Danish Kroner
(DKK), which is the functional and presentation currency of the
parent company.
93
Transactions in foreign currencies are translated at the exchange
rates in effect at the date of the transaction.
The cash flow statement is presented using the indirect method
with basis in the net profit before tax.
Exchange rate gains and losses arising between the transac-
tion date and the settlement date are recognized in the income
statement as financial income or expense.
Unsettled monetary assets and liabilities in foreign currencies are
translated at the exchange rates in effect at the balance sheet date.
Exchange rate gains and losses arising between the transaction
date and the balance sheet date are recognized in the income
statement as financial income or expense.
Classification of Operating Expenses
in the Income Statement
Research and Development Expense
Research and development expenses primarily include salaries,
benefits and other employee related costs of Genmab’s research
and development staff, license costs, manufacturing costs, preclin-
ical costs, clinical trials, contractors and outside service fees,
amortization and impairment of licenses and rights related to
intangible assets, and depreciation of property and equipment, to
the extent that such costs are related to the Group’s research and
development activities. Please see note 3.1 for a more detailed
description on the treatment of Genmab’s research and develop-
ment expenses.
Selling, General and Administrative Expense
Selling, general and administrative expenses relate to the manage-
ment and administration of Genmab, including commercialization
activities. This includes salaries, benefits and other headcount
costs related to management and support functions including
human resources, information technology and the finance depart-
ments. In addition, depreciation and impairment of property and
equipment, to the extent such expenses are related to administra-
tive functions are also included. Selling, general and administrative
expenses are recognized in the income statement in the period to
which they relate.
Cash flows from operating activities are stated as the net profit
before tax adjusted for net financial items, non-cash operating
items such as depreciation, amortization, impairment losses, share-
based compensation expenses, provisions, and for changes in
operating assets and liabilities, interest paid and received, interest
elements of lease payments and corporate taxes paid or received.
Operating assets and liabilities are mainly comprised of changes in
receivables and other payables excluding the items included in cash
and cash equivalents. Changes in non-current assets and liabilities
are included in operating assets and liabilities, if related to the main
revenue-producing activities of Genmab.
Cash flows from investing activities consist of purchases and
sales of marketable securities and other investments, as well as
purchases of intangible assets and property and equipment.
Cash flows from financing activities relate to the issuance of shares,
purchase of treasury shares, payments of withholding taxes on
behalf of employees on net settled RSUs and payments of long-term
loans including installments on lease liabilities.
Cash and cash equivalents are comprised of cash, bank deposits,
and marketable securities with a maturity of less than ninety days
on the date of acquisition.
The statements of cash flows cannot be derived solely from the
financial statements.
Treasury Shares
The total amount paid to acquire treasury shares including directly
attributable costs and the proceeds from the sale of treasury shares
are recognized in retained earnings.
2021 Annual Report / Financial Statements / Group Section 1 Basis of Presentation / 1.2 New Accounting Policies and Disclosures
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Research Collaborations, License Agreements
and Collaborative Agreements
Research Collaborations and License Agreements
Genmab continues to pursue the establishment of research collab-
orations and licensing agreements. These arrangements often
include upfront payments, expense reimbursements or payments to
the collaboration partner, and milestone and royalty arrangements,
contingent upon the occurrence of certain future events linked to
the success of the asset in development.
In regard to Genmab’s license agreements with Janssen, Novartis
and Roche, each of these parties retain final decision making
authority over the relevant activities and as such no joint control
exists. Refer to note 2.1 for additional information related to
revenue from these parties.
Genmab’s other significant research collaborations and license
agreements are with Janssen (DuoBody), CureVac, Immatics
and Bolt.
Joint Collaborative Agreements
Genmab has entered into a number of joint collaborative agree-
ments. These agreements often include upfront payments, expense
reimbursements or payments to the collaboration partner, and
milestone and royalty arrangements, contingent upon the occur-
rence of certain future events linked to the success of the asset in
development.
These agreements also provide Genmab with varying rights to
develop, produce and market products together with its collab-
orative partners. Both parties in these arrangements are active
participants and are exposed to significant risks and rewards
dependent on the commercial success of the activities of the
collaboration. In 2021, Genmab’s more significant collaboration
agreements are with AbbVie (Epcoritamab), Seagen (Tisotumab
vedotin) and BioNTech.
94
In September 2021 Tisotumab vedotin was approved in the United
States and is marketed under the trade name Tivdak. Seagen
records product sales of Tivdak in the United States and Genmab
shares 50% of the profits for this product. Genmab’s share of profits
were immaterial in 2021.
Refer to note 2.1 for additional information related to revenue
from the AbbVie collaboration.
Refer to note 5.8 for detailed information regarding
Genmab’s Research Collaborations, License Agreements and
Collaborative Agreements.
New Accounting Policies and Disclosures
Effective in 2022 or Later
The IASB has issued a number of new standards and updated
some existing standards, the majority of which are effective for
accounting periods beginning on January 1, 2022 or later. Therefore,
they are not incorporated in these consolidated financial state-
ments. There are no standards presently known that are not yet
effective and that would be expected to have a material impact on
Genmab in current or future reporting periods and on foreseeable
future transactions.
1.2
New Accounting Policies and Disclosures
New Accounting Policies and Disclosures for 2021
Genmab has, with effect from January 1, 2021, implemented the
following standards and amendments:
• Leases: Covid-19 Related Rent Concessions beyond 30 June
2021 — Amendments to IFRS 16
• Interest Rate Benchmark Reform — Phase 2 — Amendments to
IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16
The implementation of the above amendments did not have any
impact on amounts recognized in prior periods and is not expected
to have a material impact in the current or future reporting periods.
1.3
Management’s Judgements
and Estimates under IFRS
In preparing financial statements under IFRS, certain provisions in
the standards require management’s judgements, including various
accounting estimates and assumptions. These judgements and
estimates affect the application of accounting policies, as well as
reported amounts within the consolidated financial statements and
disclosures.
Determining the carrying amount of certain assets and liabilities
requires judgements, estimates and assumptions concerning future
events that are based on historical experience and other factors,
which by their very nature are associated with uncertainty and
unpredictability.
Accounting estimates are based on historical experience and
various other factors relative to the circumstances in which they
are applied. Estimates are generally made based on information
available at the time. An example would include management’s esti-
mation of useful lives of intangible assets.
2021 Annual Report / Financial Statements / Group Section 1 Basis of Presentation / 1.3 Management’s Judgements and Estimates under IFRS
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Accounting judgements are made in the process of applying
accounting policies. These judgements are typically made based on
the guidance and information available at the time of application.
Examples would include management’s judgements utilized in
determining revenue recognition.
These estimates and judgements may prove incomplete or
incorrect, and unexpected events or circumstances may arise.
Genmab is also subject to risks and uncertainties which may lead
actual results to differ from these estimates, both positively and
negatively. Specific risks for Genmab are discussed in the relevant
section of this Annual Report and in the notes to the consolidated
financial statements.
The areas involving a high degree of judgement and estimation that
are significant to the consolidated financial statements are summa-
rized below. Refer to the identified notes for further information on
the key accounting estimates and judgements utilized in the prepa-
ration of the consolidated financial statements.
Accounting Policy
Key Accounting Estimates and Judgements
Revenue Recognition
Judgement in assessing the nature of combined performance obligations
within contracts
Note Reference
Estimation Risk
Note 2.1
Moderate/High
Estimation of partner net sales amounts in the calculation of royalties
Judgement in assessing the probability of attainment of milestones
Estimation of variable consideration
Share Based
Compensation
Judgement in selecting assumptions required for valuation of Warrant
grants
Note 2.3
Moderate
Current and deferred
income taxes
Judgement and estimate regarding valuation of deferred income tax assets
Note 2.4
Moderate
Estimation in developing the provision for any uncertain tax positions
Intangible assets
Estimation of useful lives of intangible assets
Judgement in determining impairment of an intangible asset
Capitalization of research
and development costs
Judgement involved in determining when a development project reached
technological feasibility
Note 3.1
Note 3.1
Low
Low
95
2021 Annual Report / Financial Statements / Group Section 2
Results for
the Year
This section includes disclosures related to revenue,
information about geographical areas, staff costs,
corporate and deferred tax and profit per share.
A detailed description of the results for the year
is provided in the Financial Review section in the
Management’s Review.
2.1
Revenue
(DKK million)
Revenue by type:
Royalties
Reimbursement revenue
Milestone revenue
License revenue
Collaboration revenue
Total
Revenue by collaboration partner:
Janssen
AbbVie
Roche
BioNTech
Novartis
Seagen
Other collaboration partners
Total
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Review
Financial
Statements
Other
Information
2021
6,977
531
954
–
20
8,482
6,847
245
603
416
236
135
–
2020
4,741
431
351
4,588
–
10,111
4,693
4,398
305
230
212
201
72
2019
3,155
342
1,869
–
–
5,366
4,983
–
7
115
23
226
12
8,482
10,111
5,366
Revenue may vary from period to period as revenue comprises
royalties, reimbursement revenue of certain research and devel-
opment costs or revenue from net profit arrangements under
Genmab’s collaboration agreements, milestone revenue and license
revenue. Refer to page 61 of the Financial Review for details of
royalties by product.
Accounting Policies
Genmab recognizes revenue when its customer obtains control
of promised goods or services, in an amount that reflects the
consideration that the entity expects to receive in exchange for
those goods or services. To determine revenue recognition for
arrangements that Genmab determines are within the scope of
IFRS 15, Genmab performs the following five steps: (i) identify the
contract(s) with a customer; (ii) identify the performance obligations
in the contract; (iii) determine the transaction price; (iv) allocate the
transaction price to the performance obligations in the contract;
and (v) recognize revenue when (or as) the entity satisfies a perfor-
mance obligation. Genmab only applies the five-step model to
contracts when it is probable that the Company will collect the
consideration it is entitled to in exchange for the goods or services it
transfers to the customer. At contract inception, once the contract is
determined to be within the scope of IFRS 15, Genmab assesses the
goods and services promised within each contract and identifies
as a performance obligation each goods or service that is distinct.
Revenue is recognized in the amount of the transaction price that is
allocated to the respective performance obligation when (or as) the
performance obligation is satisfied.
96
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Financial
Statements
Other
Information
Royalties: Certain of Genmab’s license and collaboration agree-
ments include sales-based royalties including commercial milestone
payments based on the level of sales. The license has been
deemed to be the predominant item to which the royalties relate
under Genmab’s license and collaboration agreements. As a result,
Genmab recognizes revenue when the related sales occur.
Reimbursement Revenue for R&D Services: Genmab’s research
collaboration agreements include the provisions for reimburse-
ment or cost sharing for research and development services and
payment for full-time equivalent employees (FTEs) at contractual
rates. R&D services are performed and satisfied over time given that
the customer simultaneously receives and consumes the benefits
provided by Genmab and revenue for research services is recog-
nized over time rather than at a point in time.
Milestone Revenue: At the inception of each arrangement that
includes milestone payments, Genmab evaluates whether the
achievement of milestones is considered highly probable and
estimates the amount to be included in the transaction price using
the most likely amount method. If it is highly probable that a signif-
icant revenue reversal would not occur, the associated milestone
value is included in the transaction price. Milestone payments that
are not within the control of Genmab or the license and collabo-
ration partner, such as regulatory approvals, are not considered
probable of being achieved until those approvals are received. The
transaction price is then allocated to each performance obligation
on a relative stand-alone selling price basis, for which Genmab
recognizes revenue as or when the performance obligations under
the contract are satisfied. At the end of each subsequent reporting
period, Genmab re-evaluates the probability of achievement of
such development milestones and any related constraint, and if
necessary, adjusts its estimate of the overall transaction price. Any
such adjustments are recorded on a cumulative catch-up basis,
which would affect revenue and earnings in the period of adjust-
ment. Under all of Genmab’s existing license and collaboration
agreements, milestone payments have been allocated to the license
transfer performance obligation.
License Revenue for Intellectual Property: If the license to
Genmab’s functional intellectual property is determined to be
distinct from the other performance obligations identified in the
arrangement, Genmab recognizes revenues from non-refundable
upfront fees allocated to the license at the point in time the license
is transferred to the licensee and the licensee is able to use and
benefit from the license. For licenses that are bundled with other
promises, Genmab utilizes judgement to assess the nature of
the combined performance obligation to determine whether the
combined performance obligation is satisfied over time or at a
point in time and, if over time, the appropriate method of measuring
progress for purposes of recognizing revenue from non-refundable,
upfront fees. Under all of Genmab’s existing license and collabora-
tion agreements the license to functional intellectual property has
been determined to be distinct from other performance obligations
identified in the agreement.
Collaboration Revenue: Collaboration revenue includes net profit
sharing arrangements for the sale of commercial products.
When Genmab is determined to be the principal in sales to end
customers, all product sales are included in net product sales in
the income statement. As of December 31, 2021, Genmab has not
recorded any net product sales. When Genmab’s collaboration
partner is determined to be the principal in sales to end customers,
Genmab’s share of net profits is included in collaboration revenue.
AbbVie Collaboration Agreement
On June 10, 2020, Genmab entered into a broad collaboration
agreement to jointly develop and commercialize epcoritamab
(DuoBody-CD3xCD20), DuoHexaBody-CD37 and DuoBody-CD3x5T4
and a discovery research collaboration for future differentiated
antibody therapeutics for cancer. Under the terms of the agreement,
Genmab received a USD 750 million upfront payment in July 2020.
Within this AbbVie Agreement, Genmab identified four performance
obligations: (1) delivery of license for epcoritamab, (2) delivery
of license for DuoHexaBody-CD37, (3) delivery of license for
DuoBody-CD3x5T4, (4) co-development costs related to the product
concepts that will be under a separate research collaboration
agreement. The total transaction price under the agreement was
determined to be the USD 750 million (DKK 4,911 million) upfront
payment as the future potential milestone amounts were not
deemed to be highly probable as they are contingent upon success
in future clinical trials and regulatory approvals which are not
within Genmab’s control and were uncertain at the inception of the
agreement. Milestones will be recognized when their achievement
is deemed to be highly probable and a significant revenue reversal
would not occur. Upon commercialization of products, if any, under
this agreement, royalties and net sales-based milestones will be
recognized when the related sales occur.
The total transaction price of USD 750 million (DKK 4,911 million)
was allocated to the four performance obligations based on the
best estimate of relative stand-alone selling prices. For the license
grants, Genmab based the stand-alone selling price on a discounted
cash flow approach and considered several factors including, but
not limited to, discount rate, development timeline, regulatory
risks, estimated market demand and future revenue potential.
For co- development activities related to the product concepts, a
cost-plus margin approach was utilized. The allocation of the trans-
action price to the performance obligations is summarized below:
• Delivery of licenses for the three programs: USD 672 million (DKK
4,398 million)
• Co-development activities for the product concepts: USD
78 million (DKK 513 million)
The performance obligations related to the delivery of licenses were
completed at a point in time (June 2020) and Genmab recognized
USD 672 million (DKK 4,398 million) as license fee revenue in June
2020. After delivery of the licenses, Genmab shares further devel-
opment and commercial costs equally with AbbVie. AbbVie is not
assessed as a customer but as a collaboration partner, and as such
this part of the collaboration is not in scope of IFRS 15.
97
2021 Annual Report / Financial Statements / Group Section 2 Results for the Year / 2.2 Information about Geographical Areas
The remaining transaction price of USD 78 million (DKK 513 million)
related to the co-development activities for the product concepts
was recorded as Deferred revenue and is expected to be recognized
as revenue as activities are performed, which is estimated to be
over a seven-year period. This seven-year period approximates an
average development life cycle for these types of projects. Revenue
will be recognized for the co-development activities based on a
measure of Genmab’s efforts toward satisfying the performance
obligation relative to the total expected efforts or inputs to satisfy
the performance obligation. No revenue has been recognized in
2021 or 2020. In future reporting periods, Genmab will reevaluate
the estimates related to its efforts toward satisfying the performance
obligation and may record a change in estimate if deemed necessary.
Genmab engaged third-party valuation specialists to assist with
the allocation of the transaction price. In formulating the alloca-
tion of the transaction price various valuation techniques were
utilized, including a discounted cash flow approach and a cost-plus
margin approach.
The utilization of the discounted cash flow approach considered
several factors including, but not limited to, discount rate, devel-
opment timeline, regulatory risks, estimated market demand and
future revenue potential. The utilization of the cost-plus margin
approach considered several factors, including but not limited to,
discount rate, estimated development costs and profit margin.
Table of
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Management’s
Review
Financial
Statements
Other
Information
Management’s Judgements and Estimates
Revenue Recognition
Evaluating the criteria for revenue recognition under license and
collaboration agreements requires management’s judgement to
assess and determine the following:
• The nature of performance obligations and whether they
are distinct or should be combined with other performance
obligations to determine whether the performance obligations are
satisfied over time or at a point in time.
• An assessment of whether the achievement of milestone
payments is highly probable.
• The stand-alone selling price of each performance obligation
identified in the contract using key assumptions which
may include forecasted revenues, development timelines,
reimbursement rates for personnel costs, discount rates and
probabilities of technical and regulatory success.
• The estimate of the amount of variable consideration expected to
be received upon the finalization of the Janssen arbitration.
2.2
Information about Geographical Areas
Genmab is managed and operated as one business unit, which is reflected in the organizational structure and internal reporting. No
separate lines of business or separate business entities have been identified with respect to any licensed products, marketed products,
product candidates or geographical markets and no segment information is currently prepared for internal reporting.
Accordingly, it has been concluded that it is not relevant to include segment disclosures in the financial statements as Genmab’s business
activities are not organized on the basis of differences in related product and geographical areas.
Refer to note 5.5 for detailed information regarding Genmab’s
legal matter of the Janssen Binding Arbitration.
Refer to note 5.8 for detailed information regarding Genmab’s
significant Research Collaborations, License Agreements and
Collaborative Agreements.
(DKK million)
Denmark
Netherlands
United States
Japan
Total
Revenue
Non-current
assets
Revenue
Non-current
assets
Revenue
Non-current
assets
2021
2020
2019
8,482
–
–
–
269
422
470
95
10,111
–
–
–
344
380
370
–
5,366
–
–
–
8,482
1,256
10,111
1,094
5,366
475
336
84
–
895
Accounting Policies
Geographical information is presented for Genmab’s revenue and non-current assets. Revenue is attributed to countries on the basis of
the location of the legal entity holding the contract with the counterparty and operations. Non-current assets comprise intangible assets,
property and equipment, right-of-use assets and receivables.
98
2021 Annual Report / Financial Statements / Group Section 2 Results for the Year / 2.3 Staff Costs
2.3
Staff Costs
(DKK million)
Wages and salaries
Share-based compensation
Defined contribution plans
Other social security costs
Government grants
Total
Staff costs are included in the income statement as follows:
Research and development expenses
Selling, general and administrative expenses
Government grants related to research and development expenses
Total
Average number of FTE
Number of FTE at year-end
2021
1,174
310
80
155
(122)
1,597
1,190
529
(122)
1,597
1,022
1,212
2020
2019
694
200
51
108
(119)
934
803
250
(119)
934
656
781
489
147
39
72
(96)
651
572
175
(96)
651
471
548
Please refer to note 5.1 for additional information regarding the remuneration of the Board of Directors and Executive Management.
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Government grants, which are a reduction of payroll taxes in the
Netherlands, amounted to DKK 122 million in 2021, DKK 119 million
in 2020 and DKK 96 million in 2019. These amounts are an offset
to wages and salaries and research and development costs in the
income statement. The increase in the respective periods was
primarily due to increased research activities in the Netherlands.
Accounting Policies
Share-Based Compensation Expenses
Genmab A/S has established an RSU program as an incentive for
Genmab’s employees, members of the Executive Management, and
members of the Board of Directors. Additionally, Genmab A/S has
established a warrant program as an incentive for all the Genmab
Group’s employees, and members of the Executive Management.
Genmab applies IFRS 2, according to which the fair value of the
warrants and RSUs at grant date is recognized as an expense in
the income statement over the vesting period. Such compensation
expenses represent calculated values of warrants and RSUs granted
and do not represent actual cash expenditures. A corresponding
amount is recognized in shareholders’ equity as both the warrant
and RSU programs are designated as equity-settled share-based
payment transactions.
Government Grants
The Dutch Research and Development Act “WBSO” provides
compensation for a part of research and development wages
and other costs through a reduction in payroll taxes. WBSO grant
amounts are offset against wages and salaries and included in
research and development expenses in the income statement.
99
2021 Annual Report / Financial Statements / Group Section 2 Results for the Year / 2.3 Staff Costs
Management’s Judgements and Estimates
Share-Based Compensation Expenses
In accordance with IFRS 2, the fair value of the warrants and
RSUs at grant date is recognized as an expense in the income
statement over the vesting period, the period of delivery of work.
Subsequently, the fair value is not remeasured.
The fair value of each warrant granted during the year is calculated
using the Black-Scholes pricing model. This pricing model requires
the input of subjective assumptions such as:
• The expected stock price volatility, which is based upon the
historical volatility of Genmab’s stock price;
Table of
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Management’s
Review
Financial
Statements
Other
Information
Valuation Assumptions for Warrants Granted in 2021, 2020 and 2019
The fair value of each warrant granted during the year is calculated using the Black-Scholes pricing model with the following assumptions:
Weighted average
Fair value per warrant on grant date
Share price
Exercise price
Expected dividend yield
Expected stock price volatility
Risk-free interest rate
Expected life of warrants
2021
2020
2019
701.82
2,282.35
2,282.35
0%
36.6%
-0.54%
5 years
631.51
2,009.79
2,009.79
0%
37.0%
-0.58%
5 years
425.80
1,483.58
1,483.58
0%
34.2%
-0.56%
5 years
• The risk-free interest rate, which is determined as the interest
rate on Danish government bonds (bullet issues) with a maturity
of five years;
Based on a weighted average fair value per warrant of DKK 701.82 in 2021, DKK 631.51 in 2020 and DKK 425.80 in 2019, the total fair
value of warrants granted amounted to DKK 124 million, DKK 75 million and DKK 131 million on the grant date in 2021, 2020 and 2019,
respectively.
• The expected life of warrants, which is based on vesting
terms, expected rate of exercise and life terms in the current
warrant program.
These assumptions can vary over time and can change the fair value
of future warrants granted.
The fair value of each RSU granted during the year is equal to the closing market price on the date of grant of one Genmab A/S share. Based
on a weighted average fair value per RSU of DKK 2,236.44 in 2021, DKK 1,927.83 in 2020 and DKK 1,511.70 in 2019, the total fair value of
RSUs granted amounted to DKK 416 million, DKK 90 million and DKK 176 million on the grant date in 2021, 2020 and 2019, respectively.
100
2021 Annual Report / Financial Statements / Group Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Section 2 Results for the Year / 2.4 Corporate and Deferred Tax
2.4
Corporate and Deferred Tax
Taxation — Income Statement & Shareholders’ Equity
(DKK million)
Current tax on profit
Adjustment to deferred tax
Adjustment to valuation allowance
Total tax for the period in the income statement
(DKK million)
Net profit before tax
Tax at the Danish corporation tax rate of 22% for all periods
Tax effect of:
Adjustment to valuation allowance
Recognition of previously unrecognized tax losses and deductible temporary differences
Non-deductible expenses/non-taxable income and other permanent differences, net
All other
Total tax effect
Total tax for the period in the income statement
Total tax for the period in shareholders’ equity
Effective Tax Rate
2021
968
(371)
378
975
2021
3,983
876
137
119
(147)
(10)
99
975
(31)
24.5%
2020
1,191
(112)
67
1,146
2020
5,904
1,299
67
(222)
(5)
7
(153)
1,146
(44)
19.4%
2019
444
294
(45)
693
2019
2,859
629
–
(19)
75
8
64
693
(24)
24.2%
Corporate tax consists of current tax and the adjustment of deferred taxes during the year. The corporate tax expense was DKK 975 million
in 2021, DKK 1,146 million in 2020 and DKK 693 million in 2019. In 2021, 2020 and 2019 tax expense of DKK 31 million, DKK 44 million
and DKK 24 million, respectively, were recorded directly in shareholders’ equity, which related to excess tax benefits for share-based
compensation.
101
2021 Annual Report / Financial Statements / Group Section 2 Results for the Year / 2.4 Corporate and Deferred Tax
Taxation — Balance Sheet
Significant components of the deferred tax asset are as follows:
(DKK million)
2021
2020
Share-based instruments
Deferred revenue
Other temporary differences
Total Deferred Taxes
136
113
15
264
43
113
21
177
Genmab recognizes deferred income tax assets if it is probable that
sufficient taxable income will be available in the future, against
which the temporary differences and unused tax losses can be
utilized. Management has considered future taxable income and
applied its judgement in assessing whether deferred income tax
assets should be recognized.
As of December 31, 2021, and 2020, Genmab had gross tax loss
carryforwards of DKK 2.7 billion and DKK 2.5 billion, respectively, to
reduce future taxable income in the U.S. and the Netherlands. The
loss carryforwards generally expire in various periods through 2037
except to the extent that the U.S. tax loss originating after 2017,
and the tax losses in the Netherlands available as of December 31,
2021, will carryforward indefinitely.
Table of
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Management’s
Review
Financial
Statements
Other
Information
Accounting Policies
Management’s Judgements and Estimates
Corporate Tax
Corporate tax, which consists of current tax and deferred taxes for
the year, is recognized in the income statement, except to the extent
that the tax is attributable to items which directly relate to share-
holders’ equity or other comprehensive income.
Current tax assets and liabilities for current and prior periods are
measured at the amounts expected to be recovered from or paid to
the tax authorities.
Deferred Tax
Deferred tax is accounted for under the liability method which
requires recognition of deferred tax on all temporary differences
between the carrying amount of assets and liabilities and the tax
base of such assets and liabilities. This includes the tax value of
certain tax losses carried forward.
Deferred tax is calculated in accordance with the tax regulations in
the local countries and the tax rates expected to be in force at the
time the deferred tax is utilized. Changes in deferred tax as a result
of changes in tax rates are recognized in the income statement.
Deferred tax assets resulting from temporary differences, including
the tax value of losses to be carried forward, are recognized only
to the extent that it is probable that future taxable profit will be
available against which the differences can be utilized.
Deferred Tax
Genmab recognizes deferred tax assets, including the tax base
of tax loss carryforwards, if management assesses that these tax
assets can be offset against positive taxable income within a fore-
seeable future. This judgement is made on an ongoing basis and is
based on numerous factors, including actual results, budgets and
business plans for the coming years.
Realization of deferred tax assets is dependent upon a number of
factors, including future taxable earnings, the timing and amount
of which is highly uncertain. A significant portion of Genmab’s
future taxable income will be driven by future events that are highly
susceptible to factors outside the control of the Group including
commercial growth of DARZALEX, specific clinical outcomes, regu-
latory approvals, advancement of Genmab’s product pipeline and
other matters. Genmab intends to continue maintaining a valuation
allowance against a significant portion of its deferred tax assets
related to its subsidiaries until there is sufficient evidence to
support the reversal of all or some additional portion of these allow-
ances. The Company may release an additional part of its valuation
allowance against its deferred tax assets related to its subsidiaries.
This release would result in the recognition of certain deferred tax
assets and a decrease to income tax expense for the period such
release is recorded.
102
2021 Annual Report / Financial Statements / Group Section 2 Results for the Year / 2.5 Profit Per Share
2.5
Profit Per Share
(DKK million)
Net profit
(Shares)
Average number of shares outstanding
Average number of treasury shares
Average number of shares excl. treasury shares
Average number of share-based instruments, dilution
Average number of shares, diluted
Basic net profit per share
Diluted net profit per share
Table of
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Management’s
Review
Financial
Statements
Other
Information
Accounting Policies
Basic Net Profit per Share
Basic net profit per share is calculated as the net profit for the year
divided by the weighted average number of outstanding ordinary
shares, excluding treasury shares.
Diluted Net Profit per Share
Diluted net profit per share is calculated as the net profit for the year
divided by the weighted average number of outstanding ordinary
shares, excluding treasury shares adjusted for the dilutive effect of
share equivalents.
2021
3,008
2020
4,758
2019
2,166
65,634,300
(238,663)
65,395,637
650,114
66,045,751
46.00
45.54
65,315,975
(136,969)
65,179,006
706,869
65,885,875
73.00
72.21
63,126,771
(163,958)
62,962,813
674,030
63,636,843
34.40
34.03
In the calculation of the diluted net profit per share for 2021, 43,654 warrants (none of which were vested) have been excluded as these
share-based instruments are out of the money, compared to 68,605 (none of which were vested) for 2020. In 2019, 299,573 warrants
(of which 744 were vested) have been excluded as these share-based instruments are out of the money.
103
2021 Annual Report / Financial Statements / Group Section 3
Operating Assets
and Liabilities
This section covers the operating assets and related
liabilities that form the basis for Genmab’s activities.
Deferred tax assets and liabilities are included in
note 2.4. Assets related to Genmab’s financing
activities are shown in section 4.
3.1
Intangible Assets
(DKK million)
2021
Cost per January 1
Additions for the year
Disposals for the year
Exchange rate adjustment
Cost at December 31
Accumulated amortization and impairment per January 1
Amortization for the year
Impairment for the year
Disposals for the year
Exchange rate adjustment
Accumulated amortization and impairment per December 31
Carrying amount of Intangible Assets at December 31
2020
Cost per January 1
Additions for the year
Disposals for the year
Exchange rate adjustment
Cost at December 31
Accumulated amortization and impairment per January 1
Amortization for the year
Impairment for the year
Disposals for the year
Exchange rate adjustment
Accumulated amortization and impairment per December 31
Carrying amount of Intangible Assets at December 31
Table of
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Management’s
Review
Financial
Statements
Other
Information
Licenses, Rights,
and Patents
891
–
–
–
891
(553)
(84)
–
–
–
(637)
254
897
–
(5)
(1)
891
(427)
(109)
(22)
5
–
(553)
338
(DKK million)
2021
2020
2019
Amortization and impairments are included in the income statement as follows:
Research and development expenses
Total
84
84
131
131
99
99
104
2021 Annual Report / Financial Statements / Group
Section 3 Operating Assets and Liabilities / 3.1 Intangible Assets
Accounting Policies
Management’s Judgements and Estimates
Research and Development
Genmab currently has no internally generated intangible assets
from development, as the criteria for recognition of an asset are not
met as described below.
Licenses and Rights
Licenses, rights, and patents are initially measured at cost and
include the net present value of any future payments. The net
present value of any future payments is recognized as a liability.
Milestone payments are accounted for as an increase in the cost to
acquire licenses, rights, and patents. Genmab acquires licenses and
rights primarily to gain access to targets and technologies identified
by third parties.
Amortization
Licenses, rights, and patents are amortized using the straight-
line method over the estimated useful life of five to seven
years. Amortization, impairment losses, and gains or losses on
the disposal of intangible assets are recognized in the income
statement as research and development costs.
Impairment
If circumstances or changes in Genmab’s operations indicate that
the carrying amount of non-current assets in a cash-generating
unit may not be recoverable, management reviews the asset
for impairment.
Research and Development
Internally Generated Intangible Assets
According to IAS 38, intangible assets arising from development
projects should be recognized in the balance sheet. The criteria that
must be met for capitalization are that:
• the development project is clearly defined and identifiable
and the attributable costs can be measured reliably during the
development period;
• the technological feasibility, adequate resources to complete and
a market for the product or an internal use of the product can be
documented; and
• management has the intent to produce and market the product or
to use it internally.
Such an intangible asset should be recognized if sufficient certainty
can be documented that the future income from the development
project will exceed the aggregate cost of production, development,
and sale and administration of the product.
A development project involves a single product candidate under-
going a high number of tests to illustrate its safety profile and its
effect on humans prior to obtaining the necessary final approval of
the product from the appropriate authorities. The future economic
benefits associated with the individual development projects are
dependent on obtaining such approval. Considering the significant
risk and duration of the development period related to the develop-
ment of biological products, management has concluded that the
future economic benefits associated with the individual projects
cannot be estimated with sufficient certainty until the project
has been finalized and the necessary final regulatory approval
of the product has been obtained. Accordingly, Genmab has not
recognized such assets at this time and therefore all research
and development costs are recognized in the income statement
when incurred.
105
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Management’s
Review
Financial
Statements
Other
Information
Antibody Clinical Trial Material Purchased
for Use in Clinical Trials
According to our accounting policies, antibody clinical trial material
(antibodies) for use in clinical trials that are purchased from third
parties will only be recognized in the balance sheet at cost and
expensed in the income statement when consumed, if all criteria for
recognition as an asset are fulfilled.
During both 2021 and 2020, no antibodies purchased from third
parties for use in clinical trials have been capitalized, as these anti-
bodies do not qualify for being capitalized as inventory under either
the “Framework” to IAS/IFRS or IAS 2.
Management has concluded that the purchase of antibodies from
third parties cannot be capitalized as the technical feasibility is not
proven and no alternative use exists. Expenses in connection with
the purchase of antibodies are expensed as incurred.
Estimation of Useful Life
Genmab has licenses, rights, and patents that are amortized over
an estimated useful life of the intangible asset. As of December 31,
2021, the carrying amount of the intangible assets was DKK
254 million as compared to DKK 338 million as of December 31,
2020. Genmab estimates the useful life of the intangible assets
to be at least seven years based on the expected obsolescence of
such assets. However, the actual useful life may be shorter or longer
than seven years, depending on the development risk, the proba-
bility of success related to the development of a clinical drug as well
as potential launch of competing products.
2021 Annual Report / Financial Statements / Group Section 3 Operating Assets and Liabilities / 3.2 Property and Equipment
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
3.2
Property and Equipment
(DKK million)
2021
Cost per January 1
Additions for the year
Transfers between the classes
Disposals for the year
Exchange rate adjustment
Cost at December 31
Accumulated depreciation and impairment at January 1
Depreciation for the year
Impairment for the year
Disposals for the year
Exchange rate adjustment
Accumulated depreciation on disposals
Accumulated depreciation and impairment at December 31
Carrying amount at December 31
2020
(DKK million)
Cost per January 1
Additions for the year
Transfers between the classes
Disposals for the year
Exchange rate adjustment
Cost at December 31
Accumulated depreciation and impairment at January 1
Depreciation for the year
Impairment for the year
Disposals for the year
Exchange rate adjustment
Accumulated depreciation on disposals
Accumulated depreciation and impairment at December 31
Carrying amount at December 31
106
Leasehold
improvements
Equipment, furniture
and fixtures
Assets under
construction
Total property and
equipment
(DKK million)
2021
2020
2019
Depreciation and impairments are included
in the income statement as follows:
Research and development expenses
Selling, general and administrative
expenses
Total
93
17
110
69
10
79
37
3
40
Capital expenditures in 2021 and 2020 were primarily related to the
expansion of our facilities in the Netherlands and the United States
to support the growth in our product pipeline.
287
29
70
–
14
400
(43)
(46)
–
–
(1)
–
(90)
310
98
8
181
–
–
287
(14)
(25)
(4)
–
–
–
(43)
244
416
120
3
(9)
7
537
(221)
(64)
–
–
(2)
9
(278)
259
279
74
68
(2)
(3)
416
(175)
(47)
(3)
–
1
3
(221)
195
14
111
(73)
–
–
52
–
–
–
–
–
–
–
52
49
225
(249)
(5)
(6)
14
–
–
–
–
–
–
–
14
717
260
–
(9)
21
989
(264)
(110)
–
–
(3)
9
(368)
621
426
307
–
(7)
(9)
717
(189)
(72)
(7)
–
1
3
(264)
453
2021 Annual Report / Financial Statements / Group Section 3 Operating Assets and Liabilities / 3.3 Leases
Accounting Policies
Property and equipment is mainly comprised of leasehold improve-
ments, assets under construction, and equipment, furniture and
fixtures, which are measured at cost less accumulated depreciation,
and any impairment losses.
The cost is comprised of the acquisition price and direct costs
related to the acquisition until the asset is ready for use. Costs
include direct costs and costs to subcontractors.
Impairment
If circumstances or changes in Genmab’s operations indicate that
the carrying amount of non-current assets in a cash-generating
unit may not be recoverable, management reviews the asset
for impairment.
The basis for the review is the recoverable amount of the assets,
determined as the greater of the fair value less cost to sell or its
value in use. Value in use is calculated as the net present value of
future cash inflow generated from the asset.
Depreciation
Depreciation is calculated on a straight-line basis to allocate the
cost of the assets, net of any residual value, over the estimated
useful lives, which are as follows:
If the carrying amount of an asset is greater than the recoverable
amount, the asset is written down to the recoverable amount. An
impairment loss is recognized in the income statement when the
impairment is identified.
Equipment, furniture and fixtures
3–5 years
Computer equipment
3 years
Leasehold improvements
15 years or the lease term, if shorter
The useful lives and residual values are reviewed and adjusted if
appropriate on a yearly basis. Assets under construction are not
depreciated.
Table of
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Management’s
Review
Financial
Statements
Other
Information
3.3
Leases
Genmab has entered into lease agreements with respect to office
space and office equipment.
The leases are non-cancellable for various periods up to 2038.
Amounts recognized in the Consolidated Balance Sheets
The balance sheet shows the following amounts relating to leases:
(DKK million)
Right-of-use assets
Properties
Equipment
Total right-of-use assets
Lease liabilities
Current
Non-current
Total lease liabilities
December 31,
2021
December 31,
2020
352
2
354
62
363
425
280
3
283
42
277
319
During 2021, there were additions to Genmab’s right-of-use assets
and lease liabilities related to the commencement of leases in Japan
and the United States with respect to office space. During 2020,
there were additions to Genmab’s right-of-use assets and lease
liabilities related to the commencement of leases in the United
States and the Netherlands with respect to office and labora-
tory space.
107
2021 Annual Report / Financial Statements / Group Section 3 Operating Assets and Liabilities / 3.3 Leases
Amounts recognized in the Consolidated Statements of Comprehensive Income
The statement of comprehensive income shows the following amounts relating to leases:
(DKK million)
December 31, 2021
December 31, 2020
December 31, 2019
Depreciation charge of right-of-use assets
Properties
Equipment
Total depreciation charge of right-of-use assets
Interest expense
Expense relating to short-term leases
55
1
56
12
1
35
1
36
9
3
27
1
28
7
6
Interest expense is included in net financial items and expenses relating to short-term leases are included in operating expenses in the
statement of comprehensive income.
The total cash outflow for leases was DKK 70 million, DKK 53 million and DKK 38 million in 2021, 2020 and 2019, respectively.
Table of
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Management’s
Review
Financial
Statements
Other
Information
Future minimum payments under our leases as of December 31,
2021, December 31, 2020, and December 31, 2019, are as follows:
(DKK million)
Payment due
Less than 1 year
1 to 3 years
More than 3 years but less than 5 years
More than 5 years
Total
2021
2020
2019
74
109
97
207
487
53
85
62
194
394
32
64
27
93
216
Significant Leases Not Yet Commenced
During 2020, Genmab entered into a lease agreement with respect
to the new headquarters in Denmark with a commencement date
in March 2023 and is non-cancellable until March 2038. The total
future minimum payments over the term of the lease are approxi-
mately DKK 337 million and estimated capital expenditures to fit
out the space are approximately DKK 40 million.
During 2019, Genmab entered into a lease agreement with respect
to office and laboratory space in the Netherlands with a commence-
ment date in April 2022 and is non-cancellable until March 2032.
The total future minimum payments over the term of the lease are
approximately DKK 113 million and estimated capital expenditures
to fit out the space are approximately DKK 74 million. Additionally,
during 2021, Genmab amended the aforementioned agreement to
add additional office space in the Netherlands with a commence-
ment date in April 2022 and is non-cancellable until March 2032.
The total future minimum payments over the term of the lease
for the additional space are approximately DKK 119 million and
estimated capital expenditures to fit out the space are approxi-
mately DKK 23 million.
Future minimum payments under our leases with commencement
dates after December 31, 2021 are not included in the table above.
108
2021 Annual Report / Financial Statements / Group Section 3 Operating Assets and Liabilities / 3.4 Other Investments
Accounting Policies
All leases are recognized in the balance sheet as a right-of-use
(“ROU”) asset with a corresponding lease liability, except for short
term assets in which the lease term is 12 months or less, or low
value assets.
ROU assets represent Genmab’s right to use an underlying asset
for the lease term and lease liabilities represent Genmab’s obli-
gation to make lease payments arising from the lease. The ROU
asset is depreciated over the shorter of the asset’s useful life and
the lease term on a straight-line basis over the lease term. In the
income statement, lease costs are replaced by depreciation of the
ROU asset recognized over the lease term in operating expenses,
and interest expenses related to the lease liability are classified in
financial items.
Genmab determines if an arrangement is a lease at inception.
Genmab leases various properties and IT equipment. Rental
contracts are typically made for fixed periods. Lease terms are
negotiated on an individual basis and contain a wide range of
different terms and conditions.
at or before the commencement date less any lease incentives
received, any initial direct costs, and restoration costs.
Payments associated with short-term leases and leases of
low-value assets are recognized on a straight-line basis as an
expense in the income statement. Short-term leases are leases with
a lease term of 12 months or less and low-value assets comprise IT
equipment and small items of office furniture.
Table of
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Management’s
Review
Financial
Statements
Other
Information
Accounting Policies
Other investments are measured on initial recognition at fair value,
and subsequently at fair value. Changes in fair value are recognized
in the income statement within financial income or expense.
3.5
Receivables
(DKK million)
2021
2020
3.4
Other Investments
(DKK million)
CureVac
Bolt
Other
Total other investments
Receivables related to collaboration agreements
2,979
2,176
December 31,
2021
December 31,
2020
Interest receivables
Other receivables
Prepayments
318
26
27
371
1,067
Total
–
14
1,081
Non-current receivables
Current receivables
Total
37
160
218
55
98
154
3,394
2,483
27
3,367
3,394
20
2,463
2,483
Assets and liabilities arising from a lease are initially measured on
a present value basis. Lease liabilities include the net present value
of fixed payments, less any lease incentives. As Genmab’s leases
do not provide an implicit interest rate, Genmab uses an incre-
mental borrowing rate based on the information available at the
commencement date of the lease in determining the present value
of lease payments. Lease terms utilized by Genmab may include
options to extend or terminate the lease when it is reasonably
certain that Genmab will exercise that option. In determining the
lease term, management considers all facts and circumstances that
create an economic incentive to exercise an extension option, or not
exercise a termination option. Extension options (or periods after
termination options) are only included in the lease term if the lease
is reasonably certain to be extended (or not terminated).
ROU assets are measured at cost and include the amount of the
initial measurement of lease liability, any lease payments made
Genmab’s other investments consist primarily of an investment
in common shares of CureVac N.V. (“CureVac”). CureVac is also a
strategic partner that is focused on the research and development
of differentiated mRNA-based antibody products by combining
CureVac’s mRNA technology and know-how with Genmab’s propri-
etary antibody technologies and expertise. The investment in
CureVac AG was made in December 2019. In August 2020, CureVac
AG had an IPO and its shares are listed under CureVac N.V. During
2021, Genmab sold 35% of its investment in common shares of
CureVac. Proceeds received from the sale of shares were DKK
438 million. As of December 31, 2021, the investment in CureVac
was valued at DKK 318 million as compared to DKK 1,067 million as
of December 31, 2020.
During the second quarter of 2021, Genmab made an invest-
ment in common shares of Bolt Biotherapeutics, Inc. (“Bolt”).
As of December 31, 2021, the investment in Bolt was valued at
DKK 26 million.
109
During 2021 and 2020, there were no losses related to receivables
and the credit risk on receivables is considered to be limited. The
provision for expected credit losses was not significant given that
there have been no credit losses over the last three years and the
high-quality nature (top tier life science companies) of Genmab’s
customers are not likely to result in future default risk.
The receivables are mainly comprised of royalties, milestones and
amounts due under collaboration agreements and are non-interest
bearing receivables which are due less than one year from the
balance sheet date.
Please refer to note 4.2 for additional information about interest
receivables and related credit risk.
2021 Annual Report / Financial Statements / Group Genmab’s non-current provisions are expected to be settled
through 2026.
Accounting Policy
Provisions are recognized when Genmab has an existing legal or
constructive obligation as a result of events occurring prior to or
on the balance sheet date, and it is probable that the utilization
of economic resources will be required to settle the obligation.
Provisions are measured at management’s best estimate of the
expenses required to settle the obligation.
A provision for onerous contracts is recognized when the expected
benefits to be derived by Genmab from a contract are lower than
the unavoidable cost of meeting its obligations under the contract.
The provision is measured at the present value of the lower of the
expected cost of terminating the contract and the expected net cost
of continuing with the contract.
When Genmab has a legal obligation to restore our office lease in
connection with the termination, a provision is recognized corre-
sponding to the present value of expected future costs.
The present value of a provision is calculated using a pre-tax rate
that reflects current market assessments of the time value of money
and the risks specific to the obligation. The increase in the provision
due to passage of time is recognized as interest expense.
Section 3 Operating Assets and Liabilities / 3.6 Provisions
Accounting Policies
Receivables are designated as financial assets measured at
amortized cost and are initially measured at fair value or transaction
price and subsequently measured in the balance sheet at amortized
cost, which generally corresponds to nominal value less expected
credit loss provision.
Genmab utilizes a simplified approach to measuring expected credit
losses and uses a lifetime expected loss allowance for all receiv-
ables. To measure the expected credit losses, receivables have
been grouped based on credit risk characteristics and the days
past due.
Prepayments include expenditures related to a future financial
period. Prepayments are measured at nominal value.
3.6
Provisions
(DKK million)
Provisions per January 1
Additions during the year
Used during the year
Released during the year
Total at December 31
Non-current provisions
Current provisions
Total at December 31
2021
2020
4
9
–
–
13
13
–
13
2
2
–
–
4
4
–
4
Provisions include contractual restoration obligations related to
leases of Genmab offices. In determining the fair value of resto-
ration obligations, assumptions and estimates are made in relation
to discounting, the expected cost to restore the offices and the
expected timing of costs.
110
Table of
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Management’s
Review
Financial
Statements
Other
Information
3.7
Deferred Revenue
Genmab has recognized the following liabilities related to the
AbbVie collaboration.
(DKK million)
Deferred revenue at January 1
Payment received
Revenue recognized during the year
Total at December 31
Non-current deferred revenue
Current deferred revenue
Total at December 31
2021
513
–
–
513
487
26
513
2020
–
4,911
(4,398)
513
487
26
513
Deferred revenue was recognized in connection with the AbbVie
collaboration, as detailed in note 2.1. An upfront payment of USD 750
million (DKK 4,911 million) was received in July 2020 of which DKK
4,398 million was recognized as license revenue during 2020. None
of the deferred revenue was recognized as license revenue in 2021.
The revenue deferred at the initiation of the AbbVie agreement in
June 2020 related to four product concepts to be identified and
controlled under a research agreement to be negotiated between
Genmab and AbbVie. One of the product concepts will comprise of or
contain Genmab antibodies conjugated with AbbVie’s payload linker
technology and the other three product concepts will comprise of or
contain CD3 DuoBody bispecific antibodies and AbbVie proprietary
antibodies. Genmab and AbbVie will conclude a research agreement
that will govern the research and development activities in regard to
the product concepts. As there have been no development activities
for the product concepts in 2021 or 2020, no recognition of deferred
revenue has been made in either period. This deferred revenue is
estimated to be recognized over a seven-year period which reflects
the period expected to develop a drug concept.
Please refer to note 2.1 for additional information related to the
AbbVie collaboration.
2021 Annual Report / Financial Statements / Group Section 3 Operating Assets and Liabilities / 3.8 Other Payables
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
3.8
Other Payables
Staff Cost Liabilities
Wages and salaries, social security contributions, paid leave
and bonuses, and other employee benefits are recognized in the
financial year in which the employee performs the associated work.
(DKK million)
2021
2020
Liabilities related to collaboration
agreements
Staff cost liabilities
Other liabilities
Accounts payable
Total at December 31
Non-current other payables
Current other payables
Total at December 31
Accounting Policies
53
296
781
350
1,480
–
1,480
1,480
15
134
892
145
1,186
1
1,185
1,186
Termination benefits are recognized as an expense, when
the Genmab Group is committed demonstrably, without
realistic possibility of withdrawal, to a formal detailed plan to
terminate employment.
Genmab’s pension plans are classified as defined contribution
plans and, accordingly, no pension obligations are recognized in
the balance sheet. Costs relating to defined contribution plans
are included in the income statement in the period in which
they are accrued and outstanding contributions are included in
other payables.
Other payables are initially measured at fair value and subsequently
measured in the balance sheet at amortized cost.
Accounts Payable
Accounts payable are measured in the balance sheet at
amortized cost.
The current other payables are comprised of liabilities that are due
less than one year from the balance sheet date and are in general
not interest bearing and settled on an ongoing basis during the next
financial year.
Other Liabilities
Other liabilities primarily include accrued expenses related to our
research and development project costs.
Non-current payables are measured at the present value of the
expenditures expected to be required to settle the obligation
using a pre-tax rate that reflects current market assessments of
the time value of money and the risks specific to the obligation.
The increase in the liability due to passage of time is recognized as
interest expense.
111
2021 Annual Report / Financial Statements / Group Section 4
Capital Structure,
Financial Risk and
Related Items
This section includes disclosures related to how
Genmab manages its capital structure, cash position
and related risks and items. Genmab is primarily
financed through partnership collaborations.
112
Table of
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Management’s
Review
Financial
Statements
Other
Information
4.1
Capital Management
4.2
Financial Risk
Genmab’s goal is to maintain a strong capital base so as to
maintain investor, creditor and market confidence, and a contin-
uous advancement of Genmab’s product pipeline and business
in general.
Genmab is primarily financed through revenues under various
collaboration agreements and had, as of December 31, 2021, cash
and cash equivalents of DKK 8,957 million and marketable securi-
ties of DKK 10,381 million compared to DKK 7,260 million and DKK
8,819 million, respectively, as of December 31, 2020. Genmab’s
cash and cash equivalents and marketable securities support the
advancement of our product pipeline and operations.
The adequacy of our available funds will depend on many factors,
including the level of DARZALEX and other royalty streams, progress
in our research and development programs, the magnitude of
those programs, our commitments to existing and new clinical
collaborators, our ability to establish commercial and licensing
arrangements, our capital expenditures, market developments,
and any future acquisitions. Accordingly, we may require additional
funds and may attempt to raise additional funds through equity or
debt financings, collaborative agreements with partners, or from
other sources.
The Board of Directors monitors the share and capital structure to
ensure that Genmab’s capital resources support the strategic goals.
Neither Genmab A/S nor any of its subsidiaries are subject to exter-
nally imposed capital requirements.
The financial risks of the Genmab Group are managed centrally.
The overall risk management guidelines have been approved by
the Board of Directors and includes the Group’s investment policy
related to our marketable securities. The Group’s risk manage-
ment guidelines are established to identify and analyze the risks
faced by the Genmab Group, to set the appropriate risk limits and
controls and to monitor the risks and adherence to limits. It is
Genmab’s policy not to actively speculate in financial risks. The
Group’s financial risk management is directed solely against moni-
toring and reducing financial risks which are directly related to
Genmab’s operations.
The primary objective of Genmab’s investment activities is to
preserve capital and ensure liquidity with a secondary objective of
maximizing the return derived from security investments without
significantly increasing risk. Therefore, our investment policy
includes among other items, guidelines and ranges for which invest-
ments (all of which are shorter-term in nature) are considered to be
eligible investments for Genmab and which investment parameters
are to be applied, including maturity limitations and credit ratings.
In addition, the policy includes specific diversification criteria and
investment limits to minimize the risk of loss resulting from over
concentration of assets in a specific class, issuer, currency, country,
or economic sector.
Genmab’s marketable securities are administrated by external
investment managers. The investment guidelines and managers
are reviewed regularly to reflect changes in market conditions,
Genmab’s activities and financial position. At the beginning of 2021,
Genmab’s investment policy was amended to allow investments in
debt rated BBB- or greater by S&P or Fitch and in debt rated Baa3
or greater by Moody’s. The amended policy also includes additional
allowable investment types such as corporate debt, commercial
paper, certificates of deposit, and certain types of AAA rated asset-
backed securities.
2021 Annual Report / Financial Statements / Group Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
The majority of Genmab’s revenue is generated in USD. Exchange
rate changes to the USD will result in changes to the translated
value of future net profit before tax and cash flows. Genmab’s
revenue in USD was 92% of total revenue in 2021 as compared to
95% in 2020 and 97% in 2019.
The foreign subsidiaries are not significantly affected by currency
risks as both revenues and expenses are primarily settled in the
foreign subsidiaries’ functional currencies.
Assets and Liabilities in Foreign Currency
Genmab’s portfolio is spread over a number of different securi-
ties with a focus on liquidity and security. Genmab’s marketable
securities in USD, DKK, EUR and GBP denominated securities as a
percentage of total marketable securities was as follows:
Percent
December 31, 2021
December 31, 2020
USD
DKK
EUR
GBP
Total
75%
16%
8%
1%
100%
70%
19%
10%
1%
100%
Section 4 Capital Structure, Financial Risk and Related Items / 4.2 Financial Risk
In addition to the capital management and financing risk mentioned
in note 4.1, Genmab has identified the following key financial
risk areas, which are mainly related to our marketable securi-
ties portfolio:
• credit risk;
• foreign currency risk; and
• interest rate risk
All of Genmab’s marketable securities are traded in established
markets. Given the current market conditions, all future cash
inflows including re-investments of proceeds from the disposal of
marketable securities are invested in highly liquid and conservative
investments. Please refer to note 4.4 for additional information
regarding marketable securities.
Credit Risk
Genmab is exposed to credit risk and losses on marketable secu-
rities and bank deposits. The maximum credit exposure related
to Genmab’s cash and cash equivalents and marketable securi-
ties was DKK 19,338 million as of December 31, 2021 compared
to DKK 16,079 million as of December 31, 2020. The maximum
credit exposure to Genmab’s receivables was DKK 3,394 million
as of December 31, 2021 compared to DKK 2,483 million as of
December 31, 2020.
Marketable Securities
To manage and reduce credit risks on our securities, Genmab’s
policy is to ensure only securities from investment grade issuers
are eligible for our portfolios. No issuer of marketable securities can
be accepted if it is not assumed that the credit quality of the issuer
would be at least equal to the rating shown below:
S&P
A-2
BBB-
Moody’s
P-2
Baa3
Fitch
F-2
BBB-
Category
Short-term
Long-term
113
Genmab’s current portfolio is spread over a number of different
securities and is conservative with a focus on liquidity and security.
As of December 31, 2021, 68% of Genmab’s marketable securities
were long-term A rated or higher, or short-term A-1/P-1 rated by
S&P, Moody’s or Fitch compared to 100% as of December 31, 2020.
The total value of marketable securities including interest receiv-
ables amounted to DKK 10,418 million at the end of 2021 compared
to DKK 8,874 million at the end of 2020.
Cash and Cash Equivalents
To reduce the credit risk on our bank deposits, Genmab policy is
only to invest its cash deposits with highly rated financial institu-
tions. Currently, these financial institutions have a short-term Fitch
and S&P rating of at least F-1 and A-1, respectively. In addition,
Genmab maintains bank deposits at a level necessary to support
the short-term funding requirements of the Genmab Group. The total
value of bank deposits including AAA rated money market funds
and short-term marketable securities classified as cash equivalents
amounted to DKK 8,957 million as of December 31, 2021 compared
to DKK 7,260 million at the end of 2020. The increase was primarily
driven by Genmab’s increased profitability and foreign exchange
movements which positively impacted our USD denominated cash
and cash equivalents.
Receivables
The credit risk related to our receivables is not significant based
on the high quality nature of Genmab’s collaboration partners. As
disclosed in note 2.1, Janssen, Roche, AbbVie and BioNTech are
Genmab’s primary partners in which receivables are established for
royalties, milestone revenue and reimbursement revenue.
Foreign Currency Risk
Genmab’s presentation currency is the DKK; however, Genmab’s
revenues and expenses are in a number of different currencies.
Consequently, there is a substantial risk of exchange rate fluctua-
tions having an impact on Genmab’s cash flows, profit (loss) and/or
financial position in DKK.
2021 Annual Report / Financial Statements / Group Section 4 Capital Structure, Financial Risk and Related Items / 4.2 Financial Risk
Based on the amount of assets and liabilities denominated in EUR,
USD and GBP as of December 31, 2021 and 2020, a 1% increase/
decrease in the EUR to DKK exchange rate and a 10% increase/
decrease in both USD to DKK exchange rate and GBP to DKK
exchange rate will impact our net profit before tax by approximately:
(DKK million)
Percentage change in
exchange rate*
Impact of change in
exchange rate**
2021
EUR
USD
GBP
2020
EUR
USD
GBP
1%
10%
10%
1%
10%
10%
9
1,487
(2)
8
1,480
1
* The analysis assumes that all other variables, in particular interest rates,
remain constant.
** The movements in the income statement and equity arise from monetary
items (cash, marketable securities, receivables and liabilities) where the
functional currency of the entity differs from the currency that the monetary
items are denominated in.
Accordingly, significant changes in exchange rates could cause
Genmab’s net profit to fluctuate significantly as gains and losses
are recognized in the income statement. Genmab’s EUR exposure
is mainly related to our marketable securities, contracts and other
costs denominated in EUR. Since the introduction of the EUR in
1999, Denmark has committed to maintaining a central rate of 7.46
DKK to the EUR. This rate may fluctuate within a +/- 2.25% band.
Should Denmark’s policy toward the EUR change, the DKK values of
our EUR denominated assets and costs could be materially different
compared to what is calculated and reported under the existing
Danish policy toward the DKK/EUR.
The USD currency exposure was mainly related to cash and cash
equivalents, marketable securities, and receivables related to our
collaborations with Janssen, Roche and AbbVie. Significant changes
in the exchange rate of USD to DKK could cause the net profit to
change materially as shown in the table.
The GBP currency exposure is mainly related to contracts and
marketable securities denominated in GBP.
Interest Rate Risk
Genmab’s exposure to interest rate risk is primarily related to the
marketable securities, as Genmab currently does not have signifi-
cant interest-bearing debts.
Marketable Securities
The securities in which the Group has invested bear interest rate
risk, as a change in market derived interest rates may cause fluctu-
ations in the fair value of the investments. In accordance with the
objective of the investment activities, the portfolio of securities is
monitored on a total return basis.
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
To control and minimize the interest rate risk, Genmab maintains an
investment portfolio in a variety of securities with a relatively short
effective duration with both fixed and variable interest rates.
Due to the short-term nature of the current investments and to
the extent that we are able to hold the investments to maturity,
we consider our current exposure to changes in fair value due to
interest rate changes to be insignificant compared to the fair value
of the portfolio.
(DKK million)
Year of Maturity
2021
2022
2023
2024
2025
2026+
Total
2021
–
3,372
3,041
2,654
448
866
10,381
2020
6,195
1,296
314
98
87
829
8,819
114
2021 Annual Report / Financial Statements / Group Section 4 Capital Structure, Financial Risk and Related Items / 4.3 Financial Assets and Liabilities
4.3
Financial Assets and Liabilities
Categories of Financial Assets and Liabilities
(DKK million)
Financial assets measured at fair value through profit or loss
Marketable securities
Other investments
Financial assets measured at amortized cost
Receivables excluding prepayments
Cash and cash equivalents
Financial liabilities measured at amortized cost:
Other payables
Lease liabilities
Fair Value Measurement
Note
4.4
3.4
3.5
3.8
3.3
2021
10,381
371
3,176
8,957
(1,480)
(425)
(DKK million)
Note
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
Assets Measured at Fair Value
Marketable securities
Other investments
4.4
3.4
10,381
344
–
–
–
27
10,381
371
8,819
1,067
–
–
–
14
8,819
1,081
2021
2020
115
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Marketable Securities
Substantially all fair market values are determined by reference to
external sources using unadjusted quoted prices in established
markets for our marketable securities (Level 1).
2020
8,819
1,081
2,329
7,260
Other Investments
The fair value of Genmab’s investments in CureVac and Bolt
are determined using unadjusted quoted prices in established
markets (Level 1). In August 2020, CureVac had an IPO. As a
result, the common shares have a published price quotation in
an active market and therefore the fair value measurement was
transferred from Level 3 to Level 1 of the fair value hierarchy as of
December 31, 2020. There were no transfers into or out of Level 3
during 2021. The acquisitions represent capital calls on our Level 3
investments in 2020 and 2021.
(1,186)
(319)
(DKK million)
Other Investments
Fair value at December 31, 2019
Transfer to Level 1
Acquisitions
Fair value at December 31, 2020
Acquisitions
Fair value at December 31, 2021
149
(149)
14
14
13
27
Accounting Policies
Classification of Categories of Financial
Assets and Liabilities
Genmab classifies its financial assets held into the following
measurement categories:
• those to be measured subsequently at fair value (either through
other comprehensive income, or through profit or loss), and
• those to be measured at amortized cost.
The classification depends on the business model for managing the
financial assets and the contractual terms of the cash flows.
2021 Annual Report / Financial Statements / Group Section 4 Capital Structure, Financial Risk and Related Items / 4.4 Marketable Securities
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
For assets measured at fair value, gains and losses will either be
recorded in profit or loss or other comprehensive income.
Genmab reclassifies debt investments only when its business
model for managing those assets changes.
Further details about the accounting policy for each of the catego-
ries are outlined in the respective notes.
Fair Value Measurement
Genmab measures financial instruments, such as marketable
securities, at fair value at each balance sheet date. Management
assessed that the fair value of financial assets and liabilities
measured at amortized cost such as bank deposits, receivables and
other payables approximate their carrying amounts largely due to
the short-term maturities of these instruments.
Fair value is the price that would be received to sell an asset or
paid to transfer a liability in an orderly transaction between market
participants at the measurement date. The fair value measurement
is based on the presumption that the transaction to sell the asset or
transfer the liability takes place either:
• In the principal market for the asset or liability, or
• In the absence of a principal market, in the most advantageous
market for the asset or liability.
The principal or the most advantageous market must be accessible
by Genmab.
The fair value of an asset or a liability is measured using the
assumptions that market participants would use when pricing the
asset or liability, assuming that market participants act in their
economic best interest.
Genmab uses valuation techniques that are appropriate in the
circumstances and for which sufficient data are available to
measure fair value, maximizing the use of relevant observable
inputs and minimizing the use of unobservable inputs.
116
For financial instruments that are measured in the balance sheet
at fair value, IFRS 13 for financial instruments requires disclosure
of fair value measurements by level of the following fair value
measurement hierarchy for:
• Level 1 — Quoted prices (unadjusted) in active markets for
identical assets or liabilities
• Level 2 — Inputs other than quoted prices included within level 1
that are observable for the asset or liability, either directly (that is,
as prices) or indirectly (that is, derived from prices)
• Level 3 — Inputs for the asset or liability that are not based on
observable market data (that is, unobservable inputs).
For assets and liabilities that are recognized in the financial state-
ments on a recurring basis, Genmab determines whether transfers
have occurred between levels in the hierarchy by re-assessing
categorization (based on the lowest level input that is significant to
the fair value measurement as a whole) at the end of each reporting
period. Any transfers between the different levels are carried out at
the end of the reporting period.
4.4
Marketable Securities
(DKK million)
USD portfolio
Corporate bonds
US government bonds and treasury bills
Commercial paper
Other
Total USD portfolio
DKK portfolio
Kingdom of Denmark bonds and treasury bills
Danish mortgage-backed securities
Total DKK portfolio
EUR portfolio
European government bonds and treasury bills
GBP portfolio
UK government bonds and treasury bills
Total portfolio
Marketable securities
Market value
2021
Share
%
Market value
2020
5,149
1,496
528
608
7,781
460
1,203
1,663
856
81
10,381
10,381
50%
14%
5%
6%
75%
4%
12%
16%
8%
1%
100%
–
6,193
–
–
6,193
462
1,230
1,692
863
71
8,819
8,819
Share
%
–
70%
–
–
70%
5%
14%
19%
10%
1%
100%
Please refer to note 4.2 for additional information regarding the risks related to our marketable securities.
2021 Annual Report / Financial Statements / Group Section 4 Capital Structure, Financial Risk and Related Items / 4.5 Financial Income and Expenses
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Accounting Policies
Marketable securities consist of investments in securities with
a maturity of ninety days or greater at the time of acquisition.
Measurement of marketable securities depends on the business
model for managing the asset and the cash flow characteristics
of the asset. There are two measurement categories into which
Genmab classifies its debt instruments:
• Amortized cost: Assets that are held for collection of contractual
cash flows, where those cash flows represent solely payments of
principal and interest, are measured at amortized cost. Interest
income from these financial assets is included in finance income
using the effective interest rate method. Any gain or loss arising
on derecognition is recognized directly in profit or loss and
presented in other gains/(losses), together with foreign exchange
gains and losses. Impairment losses are presented as a separate
line item in the statement of profit or loss.
• Fair value through profit and loss (FVPL): Assets that do not meet
the criteria for amortized cost or FVOCI are measured at FVPL. A
gain or loss on a debt investment that is subsequently measured
at FVPL is recognized in profit or loss and presented net within
financial income or expenses in the period in which it arises.
Genmab’s portfolio is managed and evaluated on a fair value basis in
accordance with its stated investment guidelines and the information
provided internally to management. This business model does not
meet the criteria for amortized cost or FVOCI and as a result market-
able securities are measured at fair value through profit and loss.
This classification is consistent with the prior year’s classification.
Genmab invests its cash in deposits with major financial institu-
tions, in Danish mortgage bonds, investment grade rated corporate
debt, commercial paper, certificates of deposit, certain types of AAA
rated asset backed securities, US Agency bonds, and notes issued
by the Danish, European and United States governments. The secu-
rities can be purchased and sold using established markets.
Transactions are recognized at trade date.
117
4.5
Financial Income and Expenses
(DKK million)
Financial income:
Interest and other financial income
Gain on marketable securities, net
Gain on other investments, net
Foreign exchange rate gain, net
Total financial income
Financial expenses:
Interest and other financial expenses
Loss on marketable securities, net
Loss on other investments, net
Foreign exchange rate loss, net
Total financial expenses
Net financial items
Interest and other financial income on financial assets measured at
amortized cost related to bank deposits
Interest and other financial expenses on financial liabilities measured at
amortized cost related to bank deposits
Foreign Exchange Rate Gains and Losses
Foreign exchange rate gain, net of DKK 1,470 million in 2021
was driven by foreign exchange movements, which positively
impacted our USD denominated portfolio and cash holdings. The
USD strengthened against the DKK during 2021, resulting in a
foreign exchange rate gain. More specifically, the USD/DKK foreign
exchange rate increased from 6.0524 at December 31, 2020 to
6.5612 at December 31, 2021.
Foreign exchange rate loss, net of DKK 1,456 million in 2020
was driven by foreign exchange movements, which negatively
impacted our USD denominated portfolio and cash holdings.
The USD weakened against the DKK during 2020, resulting in a
2021
197
–
–
1,470
1,667
(13)
(246)
(443)
–
(702)
965
1
–
2020
184
–
965
–
1,149
(10)
(92)
–
(1,456)
(1,558)
(409)
7
(1)
2019
120
9
–
99
228
(7)
–
–
–
(7)
221
22
–
foreign exchange rate loss. More specifically, the USD/DKK foreign
exchange rate decreased from 6.6759 at December 31, 2019 to
6.0524 at December 31, 2020. Please refer to note 4.2 for addi-
tional information on foreign currency risk.
Other Investments
Loss on other investments, net was DKK 443 million in 2021
compared to gain on other investments, net of DKK 965 million
in 2020. The decrease was driven by the change in fair value of
Genmab’s investment in common shares of CureVac and Bolt. There
was no gain or loss attributable to other investments in 2019.
2021 Annual Report / Financial Statements / Group Section 4 Capital Structure, Financial Risk and Related Items / 4.6 Share-Based Instruments
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Interest Income
Interest and other financial income of DKK 197 million in 2021
compared to DKK 184 million in 2020 increased primarily due to
a higher cash and cash equivalents and marketable securities in
2021 compared to 2020, partly offset by lower interest rates in
2021 compared to 2020. Interest and other financial income of
DKK 184 million in 2020 compared to DKK 120 million in 2019
increased primarily due to a higher cash and cash equivalents and
marketable securities in 2020 compared to 2019, partly offset by
lower interest rates in 2020 compared to 2019.
Marketable Securities Gains and Losses
Loss on marketable securities, net of DKK 246 million in 2021 and
DKK 92 million in 2020 was primarily driven by the movements
in interest rates in the United States and Europe in the respec-
tive periods.
Accounting Policies
Financial income and expenses include interest as well as foreign
exchange rate adjustments and gains and losses on market-
able securities (designated as fair value through the income
statement) and realized gains and losses and write-downs of other
securities and equity interests (designated as available-for-sale
financial assets).
Interest and dividend income are shown separately from gains
and losses on marketable securities and other securities and
equity interests.
4.6
Share-Based Instruments
Restricted Stock Unit Program
RSUs are granted by the Board of Directors. RSU grants to
members of the Board of Directors and members of the Executive
Management are subject to the Remuneration Policy adopted at the
Annual General Meeting.
Under the terms of the RSU program, RSUs are subject to a cliff
vesting period and become fully vested on the first banking day of
the month following a period of three years from the date of grant.
Within 30 days of the vesting date, the holder of an RSU receives
one share in Genmab A/S for each RSU. In jurisdictions in which
Genmab as an employer is required to withhold tax and settle with
the tax authority on behalf of the employee, Genmab withholds
the number of RSUs that are equal to the monetary value of the
employee’s tax obligation from the total number of RSUs that
otherwise would have been issued to the employee upon vesting
(“net settlement”). Genmab A/S may at its sole discretion in extraor-
dinary circumstances choose to make cash settlement instead of
delivering shares.
RSUs Granted Until February 2021
Under the terms of the 2014 RSU Program, amended in 2016, if an
employee, member of Executive Management, or member of the
Board of Directors ceases their employment or board membership
prior to the vesting date, all RSUs that are granted, but not yet
vested, shall lapse automatically.
However, if an employee, a member of the Executive Management
or a member of the Board of Directors ceases employment or
board membership due to retirement, death, serious sickness or
serious injury then all RSUs that are granted, but not yet vested,
shall remain outstanding and will be settled in accordance with
their terms. Notwithstanding this, the December 2021 RSU grant
to members of the Board of Directors was made subject to pro-rata
vesting upon termination of board services.
Genmab A/S has established an RSU program (equity-settled
share-based payment transactions) as an incentive for Genmab’s
employees, members of the Executive Management, and members
of the Board of Directors.
In addition, for an employee or a member of the Executive
Management, RSUs that are granted, but not yet vested, shall
remain outstanding and will be settled in accordance with their
terms in instances where the employment relationship is terminated
by Genmab without cause.
The RSU program contains anti-dilution provisions if changes occur
in Genmab’s share capital prior to the vesting date and provisions
to accelerate vesting of RSUs in the event of change of control as
defined in the RSU program.
RSUs Granted After February 2021
Under the terms of the 2021 RSU Program, the Board of Directors
may decide, in its sole discretion, to accelerate the vesting of the
RSUs held by a participant, or accelerate the vesting of the RSUs
and make a cash settlement in case of (1) a change of control event
as defined in the 2021 RSU Program, if a participant’s employment
terms are materially changed to his or her detriment during the
12-month period following the change in control event, or if the
participant, who is a member of the Board of Directors, is replaced
by a new board member or such participant’s seat on the Board
of Directors is eliminated due to a reduction in the number of
board members, or (2) certain other extraordinary transactions as
described in the 2021 RSU Program.
Under the terms of the 2021 RSU Program, in the event an RSU
holder separates from Genmab under circumstances in which the
RSU holder is considered a “bad-leaver,” such as being dismissed
for cause or during the employment probationary period, unvested
RSU will be forfeited.
RSU holders may maintain a pro rata portion of unvested RSUs if
they separate from Genmab under circumstances where they are
considered “good-leavers,” such as dismissal without cause or
termination of employment due to the Genmab’s material breach
of the RSU holder’s employment terms, or if the participant is a
member of the Board of Directors, if the membership of the Board of
Directors ceases for any other reason than as a result of the partici-
pants death.
All unvested RSUs will be forfeited in the event of termination of
employment due to the RSU holder’s death.
118
2021 Annual Report / Financial Statements / Group Table of
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Management’s
Review
Financial
Statements
Other
Information
Warrant Program
Genmab A/S has established a warrant program (equity-set-
tled share-based payment transactions) as an incentive for
all the Genmab Group’s employees, and members of the
Executive Management.
Warrants are granted by the Board of Directors in accordance with
authorizations given to it by Genmab A/S’ shareholders.
Warrant grants to Executive Management are subject to Genmab’s
Remuneration Policy adopted at the Annual General Meeting.
Under the terms of the warrant program, warrants are granted
at an exercise price equal to the closing share price on the grant
date. According to the warrant program, the exercise price cannot
be fixed at a lower price than the market price at the grant date.
In connection with exercise, the warrants shall be settled with the
delivery of shares in Genmab A/S.
The warrant program contains anti-dilution provisions if
changes occur in Genmab’s share capital prior to the warrants
being exercised.
Section 4 Capital Structure, Financial Risk and Related Items / 4.6 Share-Based Instruments
RSU Activity in 2021, 2020 and 2019
Number of RSUs
held by the Board
of Directors
Number of
RSUs held by
the Executive
Management
Number of
RSUs held by
employees
Number of RSUs
held by former
members of
the Executive
Management,
Board of Directors
and employees
20,127
3,708
(2,631)
(1,251)
–
19,953
19,953
2,929
(6,470)
(2,822)
(1,025)
12,565
12,565
3,297
(3,556)
(688)
(653)
10,965
66,152
25,793
(19,080)
–
–
72,865
72,865
9,032
(12,253)
(2,334)
(1,128)
66,182
66,182
31,417
(14,089)
5,533
–
89,043
130,046
87,168
–
(8,355)
–
208,859
208,859
34,431
(22,196)
(22,762)
(958)
197,374
197,374
146,684
(35,962)
(14,810)
(255)
293,031
2,577
73
(478)
9,606
(5,548)
6,230
6,230
130
(5,936)
27,918
(10,535)
17,807
17,807
4,817
(9,967)
9,965
(9,670)
12,952
Total RSUs
218,902
116,742
(22,189)
–
(5,548)
307,907
307,907
46,522
(46,855)
–
(13,646)
293,928
293,928
186,215
(63,574)
–
(10,578)
405,991
Outstanding at January 1, 2019
Granted*
Settled
Transferred
Cancelled
Outstanding at December 31, 2019
Outstanding at January 1, 2020
Granted*
Settled
Transferred
Cancelled
Outstanding at December 31, 2020
Outstanding at January 1, 2021
Granted*
Settled
Transferred
Cancelled
Outstanding at December 31, 2021
*RSUs held by the Board of Directors includes RSUs granted to employee-elected Board Members as employees of Genmab A/S or its subsidiaries.
Please refer to note 5.1 for additional information regarding compensation of Executive Management and the Board of Directors.
The weighted average fair value of RSUs granted was DKK 2,236.44, DKK 1,927.83, and DKK 1,511.70 in 2021, 2020 and 2019,
respectively.
119
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Financial
Statements
Other
Information
Warrants Granted from August 2004 until April 2012
Warrants Granted from April 2012 until March 2017
Warrants Granted from February 2021
Under the August 2004 warrant program, warrants can be
exercised starting from one year after the grant date. As a general
rule, the warrant holder may only exercise 25% of the warrants
granted per full year of employment or affiliation with Genmab after
the grant date.
Following the Annual General Meeting in April 2012, a new warrant
program was adopted by the Board of Directors. Whereas warrants
granted under the August 2004 warrant program will lapse on the
tenth anniversary of the grant date, warrants granted under the new
April 2012 warrant program will lapse at the seventh anniversary of
the grant date. All other terms in the warrant program are identical.
However, the warrant holder will be entitled to continue to be able
to exercise all warrants on a regular schedule in instances where the
employment relationship is terminated by Genmab without cause.
In case of a change of control event as defined in the warrant
program, the warrant holder will immediately be granted the right
to exercise all of his/her warrants regardless of the fact that such
warrants would otherwise only become fully vested at a later point
in time. Warrant holders who are no longer employed by or affili-
ated with Genmab will, however, only be entitled to exercise such
percentages as would otherwise have vested under the terms of the
warrant program.
Warrants Granted from March 2017 until February 2021
In March 2017, a new warrant program was adopted by the Board of
Directors. Whereas warrants granted under the April 2012 warrant
program vested annually over a four-year period, warrants granted
under the new March 2017 warrant program are subject to a cliff
vesting period and become fully vested three years from the date of
grant. All other terms in the warrant program are identical.
In February 2021, a new warrant program was adopted. Under
the terms of the 2021 warrant program, the Board of Directors
may decide, in its sole discretion, to accelerate the vesting of the
warrants held by a warrant holder in case of (1) a change of control
event as defined in the 2021 warrant program, if a warrant holder’s
employment terms are materially changed to his or her detriment
during the 12-month period following a change in control event,
or (2) certain other extraordinary transactions as described in the
2021 warrant program.
Under the 2021 warrant program, if a warrant holder separates
from Genmab under circumstances in which the warrant holder is
considered a “bad-leaver,” such as being dismissed for cause or
during the employment probationary period, unvested warrants will
be forfeited.
Warrant holders may maintain a pro rata portion of unvested
warrants if they separate from Genmab under circumstances where
they are considered “good-leavers,” such as dismissal without
cause or termination of employment due to Genmab’s material
breach of the warrant holder’s employment terms. All unvested
warrants will be forfeited in the event of termination of employment
due to the warrant holder’s death.
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Statements
Other
Information
Section 4 Capital Structure, Financial Risk and Related Items / 4.6 Share-Based Instruments
Warrant Activity in 2021, 2020 and 2019
Outstanding at January 1, 2019
Granted*
Exercised
Expired
Cancelled
Transfers
Outstanding at December 31, 2019
Exercisable at year end
Exercisable warrants in the money at year end
Outstanding at January 1, 2020
Granted*
Exercised
Expired
Cancelled
Transfers
Outstanding at December 31, 2020
Exercisable at year end
Exercisable warrants in the money at year end
Outstanding at January 1, 2021
Granted*
Exercised
Expired
Cancelled
Transfers
Outstanding at December 31, 2021
Exercisable at year end
Exercisable warrants in the money at year end
Number of
warrants held by
the Board of Directors
Number of
warrants held by the
Executive Management
Number of warrants
held by employees
Number of warrants
held by former members
of the Executive
Management, Board of
Directors and employees
Total warrants
Weighted average
exercise price
74,478
3,925
(15,750)
–
–
(319)
62,334
50,227
50,227
62,334
–
(24,438)
–
–
(25,955)
11,941
4,192
4,192
11,941
1,217
(2,500)
–
–
–
10,658
6,594
6,594
480,201
–
(132,400)
–
–
–
347,801
230,233
227,733
347,801
7,771
–
–
(28,424)
(186,333)
140,815
83,426
83,426
140,815
1,287
(7,250)
–
–
24,782
159,634
135,723
135,723
706,088
303,066
(56,237)
–
–
(93,944)
858,973
225,855
219,403
858,973
110,041
(122,015)
–
(589)
(113,833)
732,577
166,402
166,402
732,577
167,080
(105,726)
–
(477)
(54,454)
739,000
219,386
219,386
162,443
228
(95,044)
(2,000)
(15,374)
94,263
144,516
131,933
129,698
144,516
416
(324,793)
–
(43,125)
326,121
103,135
92,696
92,696
103,135
6,400
(57,232)
–
(22,816)
29,672
59,159
50,021
50,021
1,423,210
307,219
(299,431)
(2,000)
(15,374)
–
1,413,624
638,248
627,061
1,413,624
118,228
(471,246)
–
(72,138)
–
988,468
346,716
346,716
988,468
175,984
(172,708)
–
(23,293)
–
968,451
411,724
411,724
592.14
1,483.58
212.23
129.75
1,049.34
–
862.03
407.89
385.84
862.03
2,009.79
296.77
–
1,157.54
–
1,247.22
935.60
935.60
1,247.22
2,282.35
780.48
–
1,956.91
–
1,501.49
1,058.41
1,058.41
*Warrants held by the Board of Directors includes warrants granted to employee-elected Board Members as employees of Genmab A/S or its subsidiaries.
Please refer to note 5.1 for additional information regarding compensation of Executive Management and the Board of Directors.
The number of outstanding warrants as a percentage of share capital at period end 2021 was 1% as compared to 2% for 2020 and 2019, respectively. For exercised warrants in 2021,
the weighted average share price at the exercise date amounted to DKK 2,439.80, compared to DKK 2,035.29 in 2020 and DKK 1,267.92 in 2019.
121
2021 Annual Report / Financial Statements / Group Section 4 Capital Structure, Financial Risk and Related Items / 4.6 Share-Based Instruments
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Weighted Average Outstanding Warrants at December 31, 2021
Weighted Average Outstanding Warrants at December 31, 2020
Number of
warrants
outstanding
Weighted average
remaining contractual
life (in years)
Number of
warrants
exercisable
Exercise
price
DKK
600
650
7,700
5,301
20,612
6,527
169,565
79,771
16,806
10,424
53,374
17,209
7,662
19,028
10,189
9,030
52,223
32,054
7,110
1,274
946
8,400
3,445
183,240
14,898
96,840
16,880
36,949
23,761
12,329
6,879
15,261
21,514
968,451
0.24
0.45
0.77
1.21
0.94
3.44
3.94
2.96
3.73
1.77
1.96
4.43
4.25
4.17
3.28
1.44
4.78
5.24
2.24
2.44
2.11
2.25
2.76
4.93
5.43
6.16
6.29
5.77
5.96
6.08
6.89
6.48
6.77
4.39
600
650
7,700
5,301
20,612
6,527
169,565
79,771
16,806
10,424
53,374
–
–
–
10,189
9,030
–
–
7,110
1,274
946
8,400
3,445
–
–
–
–
–
–
–
–
–
–
411,724
31.75
40.41
55.85
220.40
225.30
337.40
466.20
623.50
636.50
815.50
939.50
962.00
1,025.00
1,032.00
1,050.00
1,136.00
1,145.00
1,147.50
1,155.00
1,161.00
1,210.00
1,233.00
1,334.50
1,362.50
1,402.00
1,408.00
1,424.00
1,427.00
1,432.00
1,615.00
1,948.00
2,317.00
2,381.00
1,247.22
Grant Date
October 14, 2011
June 22, 2011
April 6, 2011
October 15, 2014
June 12, 2014
December 15, 2014
March 26, 2015
June 11, 2015
October 7, 2015
March 17, 2016
December 10, 2015
June 7, 2018
December 10, 2018
December 15, 2017
September 21, 2018
October 6, 2016
December 15, 2016
June 6, 2019
March 29, 2019
March 1, 2019
April 10, 2018
June 9, 2016
October 11, 2019
March 26, 2020
March 28, 2017
June 8, 2017
February 10, 2017
March 29, 2017
October 5, 2017
December 5, 2019
June 3, 2020
October 7, 2020
December 15, 2020
Number of
warrants
outstanding
Weighted average
remaining contractual
life (in years)
Number of
warrants
exercisable
1,260
24,290
125
1,045
2,440
20,287
4,150
850
12,950
7,042
44,675
14,355
182,352
111,144
26,497
11,761
63,410
19,290
7,959
19,528
14,138
10,870
54,096
33,573
7,335
1,641
1,427
8,400
11,988
185,403
15,582
43,641
24,964
988,468
0.79
0.48
0.27
0.79
0.45
0.96
1.24
1.45
1.77
2.21
1.94
4.44
4.94
3.96
4.73
2.77
2.96
5.43
5.25
5.17
4.28
2.44
5.78
6.24
3.24
3.44
3.11
3.25
3.76
5.93
6.43
6.77
6.96
4.60
1,260
24,290
125
1,045
2,440
20,287
4,150
850
12,950
7,042
44,675
–
–
111,144
–
11,761
63,410
–
–
–
–
10,870
–
–
7,335
1,641
1,053
8,400
11,988
–
–
–
–
346,716
Grant Date
March 26, 2015
June 11, 2015
October 7, 2015
March 17, 2016
December 10, 2015
June 7, 2018
December 10, 2018
December 15, 2017
September 21, 2018
October 6, 2016
December 15, 2016
June 6, 2019
March 29, 2019
March 1, 2019
April 10, 2018
June 9, 2016
October 11, 2019
March 26, 2020
March 28, 2017
June 8, 2017
February 10, 2017
March 29, 2017
October 5, 2017
December 5, 2019
June 3, 2020
February 26, 2021
April 13, 2021
October 7, 2020
December 15, 2020
January 28, 2021
November 22, 2021
June 22, 2021
October 7, 2021
Exercise
price
DKK
466.20
623.50
636.50
815.50
939.50
962.00
1,025.00
1,032.00
1,050.00
1,136.00
1,145.00
1,147.50
1,155.00
1,161.00
1,210.00
1,233.00
1,334.50
1,362.50
1,402.00
1,408.00
1,424.00
1,427.00
1,432.00
1,615.00
1,948.00
2,070.00
2,148.00
2,317.00
2,381.00
2,492.00
2,641.00
2,698.00
2,806.00
1,501.49
122
2021 Annual Report / Financial Statements / Group Section 4 Capital Structure, Financial Risk and Related Items / 4.7 Share Capital
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
4.7
Share Capital
Share Capital
The share capital comprises the nominal amount of Genmab A/S
ordinary shares, each at a nominal value of DKK 1. All shares are
fully paid.
As of December 31, 2021, the share capital of Genmab A/S
comprised 65,718,456 shares of DKK 1 each with one vote. There
are no restrictions related to the transferability of the shares. All
shares are regarded as negotiable instruments and do not confer
any special rights upon the holder, and no shareholder shall be
under an obligation to allow his/her shares to be redeemed.
Until April 12, 2026, the Board of Directors is authorized to increase
the nominal registered share capital on one or more occasions by
up to nominally DKK 5,500,000 by subscription of new shares that
shall have the same rights as the existing shares of Genmab. The
capital increase can be made by cash or by non-cash payment and
with or without pre-emption rights for the existing shareholders.
Within the authorizations to increase the share capital by nominally
DKK 5,500,000 shares, the Board of Directors may on one or more
occasions and without pre-emption rights for the existing share-
holders of Genmab issue up to nominally DKK 2,000,000 shares
to employees of Genmab, and Genmab’s subsidiaries, by cash
payment at market price or at a discount price as well as by the
issue of bonus shares. No transferability restrictions or redemption
obligations shall apply to the new shares, which shall be negotiable
instruments in the name of the holder and registered in the name of
the holder in Genmab A/S’ Register of Shareholders. The new shares
shall give the right to dividends and other rights as determined by
the Board in its resolution to increase capital.
Until April 12, 2026, the Board of Directors is authorized by one or
more issues to raise loans against bonds or other financial instru-
ments up to a maximum amount of DKK 6.5 billion with a right for
the lender to convert his/her claim to a maximum of nominally
DKK 2,600,000 equivalent to 2,600,000 new shares (convertible
loans). Convertible loans may be raised in DKK or the equivalent in
foreign currency (including USD or EUR). The Board of Directors is
also authorized to effect the consequential increase of the capital.
Convertible loans may be raised against payment in cash or in other
ways. The subscription of shares shall be with or without pre-emp-
tion rights for the shareholders and the convertible loans shall
be offered at a subscription price and conversion price that in the
aggregate at least corresponds to the market price of the shares at
the time of the decision of the Board of Directors. The time limit for
conversion may be fixed for a longer period than five years after the
raising of the convertible loan.
The authorizations to the Board of Directors referred to above
combined can, subject to the limitations in the authorizations, be
utilized to increase the share capital by a total of nominally DKK
5,500,000; however, the nominal increase of the share capital may
be higher due to subsequent adjustments of the convertible debt
instruments in accordance with the adjustment clauses determined
by the Board of Directors when the convertible debt instruments
are issued.
By decision of the general meeting on March 28, 2017, the Board
of Directors was authorized to issue on one or more occasions
warrants to subscribe Genmab A/S’ shares up to a nominal value of
DKK 500,000. This authorization shall remain in force for a period
ending on March 28, 2022. Moreover, by decision of the general
meeting on March 29, 2019 the Board of Directors is authorized to
issue on one or more occasions additional warrants to subscribe
Genmab A/S’ shares up to a nominal value of DKK 500,000 to
Genmab A/S’ employees as well as employees of Genmab A/S’
directly and indirectly owned subsidiaries, excluding executive
management, and to make the related capital increases in cash up
to a nominal value of DKK 500,000. This authorization shall remain
in force for a period ending on March 28, 2024. Furthermore, by
decision of the general meeting on April 13, 2021 the Board of
Directors was authorized to issue on one or more occasions addi-
tional warrants to subscribe Genmab A/S’ shares up to a nominal
value of DKK 750,000 to Genmab A/S’ employees as well as
employees of Genmab A/S’ directly and indirectly owned subsid-
iaries, excluding executive management, and to make the related
capital increases in cash up to a nominal value of DKK 750,000,
however, the nominal increase of the share capital may be higher
due to subsequent adjustments of the warrants in accordance with
the adjustment clauses determined by the Board of Directors when
the warrants are issued. This authorization shall remain in force for
a period ending on April 12, 2026.
Subject to the rules in force at any time, the Board of Directors may
reuse or reissue lapsed non-exercised warrants, if any, provided
that the reuse or reissue occurs under the same terms and within
the time limitations set out in the authorization to issue warrants.
As of December 31, 2021, a total of 438,973 warrants have been
issued and a total of 60,394 warrants have been reissued under the
March 28, 2017 authorization, and a total of 414,089 warrants have
been issued and a total of 20,439 warrants have been reissued
under the March 29, 2019 authorization. No warrants have been
issued under the April 13, 2021 authorization. A total of 896,938
warrants remain available for issue and a total of 21,739 warrants
remain available for reissue as of December 31, 2021.
Share Premium
The share premium reserve is comprised of the amount received,
attributable to shareholders’ equity, in excess of the nominal
amount of the shares issued at the parent company’s offerings,
reduced by any external expenses directly attributable to the
offerings. The share premium reserve can be distributed.
123
2021 Annual Report / Financial Statements / Group Section 4 Capital Structure, Financial Risk and Related Items / 4.7 Share Capital
Changes in Share Capital During 2019 to 2021
Treasury Shares
The share capital of DKK 66 million at December 31, 2021 is divided
into 65,718,456 shares at a nominal value of DKK 1 each.
December 31, 2018
Shares issued for cash
Exercise of warrants
December 31, 2019
Exercise of warrants
December 31, 2020
Exercise of warrants
December 31, 2021
Number of
shares
Share capital
(DKK million)
Shareholding at December 31, 2018
Shares used for funding RSU program
61,497,571
3,277,500
299,431
65,074,502
471,246
65,545,748
172,708
65,718,456
61.5
Shareholding at December 31, 2019
Shares used for funding RSU program
Shareholding at December 31, 2020
Purchase of treasury shares
Shares used for funding RSU program
Shareholding at December 31, 2021
3.3
0.3
65.1
0.4
65.5
0.2
65.7
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Number of shares
Share capital
(DKK million)
Proportion of
share capital
%
Cost
(DKK million)
177,550
(13,629)
163,921
(31,815)
132,106
200,000
(43,781)
288,325
0.2
–
0.2
(0.1)
0.1
0.2
–
0.3
0.3
–
0.3
(0.1)
0.2
0.3
(0.1)
0.4
208
(16)
192
(38)
154
447
(51)
550
During 2021, 172,708 new shares were subscribed at a price of DKK
31.75 to DKK 1,432.00 in connection with the exercise of warrants
under Genmab’s warrant program.
During 2020, 471,246 new shares were subscribed at a price of DKK
31.75 to DKK 1,432.00 in connection with the exercise of warrants
under Genmab’s warrant program.
On July 22, 2019, gross proceeds from the issuance of new shares
amounted to USD 506 million (DKK 3,368 million) with a corre-
sponding increase in share capital of 2,850,000 ordinary shares or
28,500,000 ADSs. The underwriters exercised in full their option
to purchase an additional 427,500 ordinary shares or 4,275,000
ADSs bringing the total shares issued to 3,277,500 and total gross
proceeds of the offering to USD 582 million (DKK 3,873 million),
which was completed on July 23, 2019.
During 2019, 299,431 new shares were subscribed at a price of DKK
31.75 to DKK 1,424.00 in connection with the exercise of warrants
under Genmab’s warrant program.
Genmab has two authorizations to repurchase shares as of
December 31, 2021. The first authorization, granted on March 29,
2019, authorizes the Board of Directors to repurchase up to a total
of 500,000 shares (with a nominal value of DKK 500,000) and
shall lapse on March 28, 2024. The second authorization, granted
on April 13, 2021, authorizes the Board of Directors to repurchase
up to an additional 500,000 shares (with a nominal value of DKK
500,000) and shall lapse on April 12, 2026. The authorization
granted on March 17, 2016, authorizing the Board of Directors to
repurchase up to a total of 500,000 shares (with a nominal value
of DKK 500,000) lapsed on March 17, 2021. The authorizations
are intended to cover inter alia obligations in relation to the share-
based remuneration programs and reduce the dilution effect of
share capital increases resulting from future exercises of warrants.
During 2021, Genmab acquired 200,000 of its own shares, approx-
imately 0.3% of share capital, to cover its obligations under the RSU
program and to mitigate dilution from warrant exercises. The total
amount paid to acquire the shares, including directly attributable
costs, was DKK 447 million and has been recognized as a deduction
to Shareholders’ Equity. These shares are classified as treasury
shares. Treasury shares are presented within Retained earnings
as of December 31, 2021, 2020 and 2019. 30,000 of the shares
were acquired in accordance with the authorization granted by the
Annual General Meeting in March 2016 and 170,000 of the shares
were acquired in accordance with the authorization granted by the
Annual General Meeting in March 2019. There were no acquisitions
of treasury shares in 2020 or 2019.
As of December 31, 2021, a total of 255,000 shares, with a
nominal value of DKK 255,000, have been repurchased under the
March 17, 2016 authorization and a total of 170,000 shares, with a
nominal value of DKK 170,000, have been repurchased under the
March 29, 2019 authorization. A total of 830,000 shares, with a
nominal value of DKK 830,000, remain available to repurchase as of
December 31, 2021.
124
2021 Annual Report / Financial Statements / Group Section 5
Other Disclosures
This section is comprised of various statutory
disclosures or notes that are of secondary importance
for the understanding of Genmab’s financials.
5.1
Remuneration of the Board of Directors
and Executive Management
The total remuneration of the Board of Directors and Executive
Management is as follows:
(DKK million)
Wages and salaries
Share-based compensation expenses
Defined contribution plans
Total
2021
2020
2019
51
58
2
111
48
43
2
93
42
38
1
81
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
The remuneration packages for the Board of Directors and Executive
Management are described in further detail in Genmab’s 2021
Compensation Report. The remuneration packages are denomi-
nated in DKK, EUR or USD. The Compensation Committee of the
Board of Directors performs an annual review of the remuneration
packages. All incentive and variable remuneration is considered and
adopted at the Company’s Annual General Meeting.
In accordance with Genmab’s accounting policies, described in
note 2.3, share-based compensation is included in the income
statement and reported in the table above. Such share-based
compensation expense represents a calculated fair value of instru-
ments granted and does not represent actual cash compensation
received by the board members or executives. Please refer to
note 4.6 for additional information regarding Genmab’s share-
based compensation programs.
125
2021 Annual Report / Financial Statements / Group Section 5 Other Disclosures / 5.1 Remuneration of the Board of Directors and Executive Management
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Remuneration to the Board of Directors
(DKK million)
Deirdre P. Connelly
Pernille Erenbjerg
Mats Pettersson1
Anders Gersel Pedersen
Paolo Paoletti
Rolf Hoffmann
Jonathan Peacock2
Peter Storm Kristensen5
Rick Hibbert4,5
Rima Bawarshi Nassar3,5
Mijke Zachariasse5
Daniel J. Bruno3,5
Total
Base
Board Fee
Committee
Fees
Share-Based
Compensation
Expenses
2021
Base
Board Fee
Committee
Fees
Share-Based
Compensation
Expenses
2020
Base
Board Fee
Committee
Fees
Share-Based
Compensation
Expenses
1.2
0.9
–
0.6
0.6
0.6
0.5
0.6
–
0.6
0.6
–
6.2
0.5
0.4
–
0.4
0.3
0.4
0.3
–
–
–
–
–
2.3
0.7
0.5
–
0.4
0.4
0.4
0.6
0.4
–
0.2
0.3
–
3.9
2.4
1.8
–
1.4
1.3
1.4
1.4
1.0
–
0.8
0.9
–
12.4
1.1
0.7
0.3
0.4
0.4
0.4
0.3
0.4
–
0.1
0.4
0.3
4.8
0.5
0.4
0.1
0.4
0.3
0.3
0.3
–
–
–
–
–
2.3
0.7
0.4
1.6
0.5
0.4
0.5
0.4
0.4
–
–
0.1
(0.4)
4.6
2.3
1.5
2.0
1.3
1.1
1.2
1.0
0.8
–
0.1
0.5
(0.1)
11.7
0.8
0.4
1.2
0.4
0.4
0.4
–
0.4
0.1
–
0.3
0.4
4.8
0.5
0.3
0.2
0.4
0.3
0.3
–
–
–
–
–
–
2.0
0.9
0.4
0.8
0.6
0.4
0.8
–
0.4
0.4
–
–
0.4
5.1
2019
2.2
1.1
2.2
1.4
1.1
1.5
–
0.8
0.5
–
0.3
0.8
11.9
1. Mats Pettersson stepped down from the Board of Directors at the Annual General Meeting in March 2020.
2. Jonathan Peacock stepped down from the Board of Directors effective November 15, 2021, due to increased responsibilities in connection with his other board commitments.
3. Daniel J. Bruno stepped down from the Board of Directors and Rima Bawarshi Nassar replaced Daniel J. Bruno on the Board of Directors as an employee elected board member during August 2020.
4. Rick Hibbert stepped down from the Board of Directors at the Annual General Meeting in March 2019.
5. Employee elected board member.
Please refer to the section “Board of Directors” in Management’s Review for additional information regarding the Board of Directors.
126
2021 Annual Report / Financial Statements / Group Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Severance Payments:
In the event Genmab terminates the service agreements with each
member of the Executive Management team without cause, Genmab
is obliged to pay the Executive Officer his/her existing salary for one
or two years after the end of the one year notice period. However,
in the event of termination by Genmab (unless for cause) or by a
member of Executive Management as a result of a change of control
of Genmab, Genmab is obliged to pay a member of the Executive
Management a compensation equal to his/her existing total salary
(including benefits) for up to two years in addition to the notice
period. In 2021, the Remuneration Policy was amended at the
Annual General Meeting to specify that the total value of the remu-
neration relating to the notice period for new members of Executive
Management cannot exceed two years of remuneration, including
all components of the remuneration. In case of the termination
of the service agreements of the Executive Management without
cause, the total impact on our financial position is estimated to be
approximately DKK 72 million as of December 31, 2021 (2020: DKK
52 million, 2019: DKK 46 million).
Please refer to note 5.5 for additional information regarding the
potential impact in the event of change of control of Genmab.
Section 5 Other Disclosures / 5.1 Remuneration of the Board of Directors and Executive Management
Remuneration to the Executive Management
2021
(DKK million)
Base Salary
Defined
Contribution
Plans
Other Benefits
Annual Cash
Bonus
Share-Based
Compensation
Expenses
Jan van de Winkel
Anthony Pagano
Anthony Mancini
Judith Klimovsky
Tahamtan Ahmadi1
Total
7.9
3.2
3.9
4.0
3.3
22.3
1.1
0.1
0.1
0.1
0.1
1.5
0.6
–
3.1
–
–
3.7
7.9
1.9
2.3
2.5
2.0
16.6
20.6
7.2
7.2
13.2
5.5
53.7
1. Tahamtan Ahmadi was appointed Chief Medical Officer, Head of Experimental Medicines and member of the Executive Management in March 2021.
2020
(DKK million)
Base Salary
Defined
Contribution
Plans
Other Benefits
Annual Cash
Bonus
Share-Based
Compensation
Expenses
Jan van de Winkel
Anthony Pagano1
Anthony Mancini2
Judith Klimovsky
David A. Eatwell1
Total
7.3
3.0
3.1
4.0
0.9
18.3
1.0
0.1
0.1
0.1
0.1
1.4
1.0
–
3.3
0.1
2.5
6.9
8.4
2.3
2.0
3.0
–
15.7
19.6
5.2
3.1
12.7
(2.3)
38.3
Total
38.1
12.4
16.6
19.8
10.9
97.8
Total
37.3
10.6
11.6
19.9
1.2
80.6
1. David A. Eatwell stepped down as CFO on February 29, 2020, and Anthony Pagano was appointed CFO and member of the Executive Management on March 1, 2020.
2. Anthony Mancini was appointed Chief Operating Officer and member of the Executive Management in March 2020.
2019
(DKK million)
Base Salary
Defined
Contribution
Plans
Other Benefits
Annual Cash
Bonus
Share-Based
Compensation
Expenses
Jan van de Winkel
David A. Eatwell
Judith Klimovsky
Total
7.3
4.3
4.1
15.7
1.0
0.1
0.1
1.2
3.6
0.9
–
4.5
8.4
3.2
3.1
14.7
14.9
8.0
9.7
32.6
Total
35.2
16.5
17.0
68.7
Please refer to the section “Senior Leadership” in Management’s Review for additional information regarding the Executive Management.
127
2021 Annual Report / Financial Statements / Group Section 5 Other Disclosures / 5.2 Related Party Disclosures
5.2
Related Party Disclosures
Genmab’s related parties are the parent company’s subsidiaries,
Board of Directors, Executive Management, and close members of
the family of these persons.
Genmab has not granted any loans, guarantees or other commit-
ments to or on behalf of any of the members of the Board of
Directors or Executive Management.
Other than the remuneration and other transactions relating to
the Board of Directors and Executive Management described in
note 5.1, there were no material related party transactions during
2021, 2020 and 2019.
5.3
Company Overview
Genmab A/S (parent company) holds investments either directly or
indirectly in the following subsidiaries:
Name
Domicile
Ownership
and votes
2021
Ownership
and votes
2020
Genmab B.V.
Utrecht, the Netherlands
Genmab Holding B.V. Utrecht, the Netherlands
Genmab US, Inc.
New Jersey, USA
Genmab K.K.
Tokyo, Japan
100%
100%
100%
100%
100%
100%
100%
100%
128
5.4
Commitments
Guarantees and Collaterals
There were no bank guarantees as of December 31, 2021 or 2020.
Other Purchase Obligations
Genmab has entered into a number of agreements primarily related
to research and development activities. These short term contrac-
tual obligations amounted to approximately DKK 1,340 million as
of December 31, 2021, all of which is due in less than two years
(2020: approximately DKK 1,074 million).
Genmab also has certain contingent commitments under
license and collaboration agreements that may become due for
future payments. As of December 31, 2021, these contingent
commitments amounted to approximately DKK 19,574 million
(approximately USD 2,983 million) in potential future development,
regulatory and commercial milestone payments to third parties
under license and collaboration agreements for our preclinical
and clinical stage development programs as compared to approxi-
mately DKK 14,638 million (approximately USD 2,418 million) as of
December 31, 2020. These milestone payments generally become
due and payable only upon the achievement of certain develop-
ment, clinical, regulatory or commercial milestones. The events
triggering such payments or obligations have not yet occurred.
In addition to the above obligations, Genmab enters into a variety
of agreements and financial commitments in the normal course of
business. The terms generally allow Genmab the option to cancel,
reschedule and adjust our requirements based on our business
needs prior to the delivery of goods or performance of services. It
is not possible to predict the maximum potential amount of future
payments under these agreements due to the conditional nature of
our obligations and the unique facts and circumstances involved in
each particular agreement.
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
5.5
Contingent Assets and
Contingent Liabilities
Contingent Assets and Liabilities
License and Collaboration Agreements
Genmab is entitled to potential milestone payments and royalties
on successful commercialization of products developed under
license and collaboration agreements with partners. Since the size
and timing of such payments are uncertain until the milestones
are reached or sales are generated, the agreements may qualify as
contingent assets. However, it is impossible to measure the value of
contingent assets, and as such, no assets have been recognized.
As part of the license and collaboration agreements that Genmab
has entered into, once a product is developed and commercialized,
Genmab may be required to make milestone and royalty payments.
It is impossible to measure the value of such future payments, but
Genmab expects to generate future income from such products
which will exceed any milestone and royalty payments due, and as
such, no liabilities have been recognized.
Legal Matter — Janssen Binding Arbitration
In September 2020, Genmab commenced binding arbitration
of two matters arising under its license agreement with Janssen
relating to daratumumab. Under the license agreement, Genmab
is, among other things, entitled to royalties from Janssen on sales
of daratumumab (marketed as DARZALEX for IV administration
and as DARZALEX FASPRO in the United States and DARZALEX SC
in Europe for SC administration). The arbitration first is to settle
whether Genmab is required to share in Janssen’s royalty payments
to Halozyme for the Halozyme enzyme technology used in the
SC formulation of daratumumab. The royalties Janssen pays to
Halozyme represent a mid-single digit percentage rate of SC daratu-
mumab sales. Janssen has started reducing its royalty payments to
Genmab by what it claims to be Genmab’s share of Janssen’s royalty
payments to Halozyme beginning in the second quarter of 2020
and has continued to do so through December 31, 2021. Given
2021 Annual Report / Financial Statements / Group Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
5.6
Fees to Auditors Appointed at
the Annual General Meeting
(DKK million)
2021
2020
2019
PricewaterhouseCoopers
Audit fees
Audit-related fees
Tax fees
All other fees
Total
5.8
1.8
–
0.1
7.7
4.9
1.0
0.3
–
6.2
1.9
2.3
0.5
2.4
7.1
Fees for other services than statutory audit of the financial state-
ments provided by PricewaterhouseCoopers Statsautoriseret
Revisionspartnerselskab amounted to DKK 1.9 million in 2021 (DKK
1.3 million and DKK 5.2 million in 2020 and 2019, respectively).
These services primarily include agreed-upon procedures, other
assurance assessments and reports, accounting advice, educa-
tional training and tax and VAT compliance. The decrease in fees
from 2019 to 2020 was driven by additional services relating to
Genmab’s IPO on the Nasdaq in the U.S.
Section 5 Other Disclosures / 5.6 Fees to Auditors Appointed at the Annual General Meeting
the ongoing arbitration, Genmab has reflected this reduction in its
royalty revenues each quarter. To date, the impact to royalties is
estimated to be DKK 501 million (2021: DKK 421 million, 2020: DKK
80 million). The arbitration is also to settle whether Janssen’s obli-
gation to pay royalties on sales of licensed product extends, in each
applicable country, until the expiration or invalidation of the last-to-
expire relevant Genmab-owned patent or the last-to-expire relevant
Janssen-owned patent covering the product, as further defined and
described in the license agreement.
Change of Control
In the event of a change of control, change of control clauses are
included in some of our collaboration, development and license
agreements as well as in service agreements for certain employees.
In addition, Genmab has entered into service agreements with 17
(2020: 18) current employees according to which Genmab may
become obliged to compensate the employees in connection with
a change of control of Genmab. If Genmab as a result of a change of
control terminates the service agreement without cause, or changes
the working conditions to the detriment of the employee, the
employee shall be entitled to terminate the employment relation-
ship without further cause with one month’s notice in which case
Genmab shall pay the employee a compensation equal to one-half,
one or two times the employee’s existing annual salary (including
benefits). In case of the change of control event and the termina-
tion of all 17 service agreements the total impact on Genmab’s
consolidated financial position is estimated to approximately DKK
55 million as of December 31, 2021 (2020: DKK 57 million).
Please refer to note 4.6 for additional information regarding
change of control clauses related to share-based instruments
granted to the Executive Management and employees.
Accounting Policies
Contingent Assets and Liabilities
Contingent assets and liabilities are assets and liabilities that arose
from past events but whose existence will only be confirmed by
the occurrence or non-occurrence of future events that are beyond
Genmab’s control.
Contingent assets and liabilities are not to be recognized in the
consolidated financial statements, but are disclosed in the notes.
Collaboration, Development and License Agreements
Genmab has entered into collaboration, development and license
agreements with external parties, which may be subject to rene-
gotiation in case of a change of control event as specified in the
individual agreements. However, any changes in the agreements are
not expected to have significant influence on our financial position.
Service Agreements with Executive
Management and Employees
The service agreements with each member of the Executive
Management may be terminated by Genmab with no less than 12
months’ notice and by the member of the Executive Management
with no less than six months’ notice. In the event of a change of
control of Genmab, the termination notice due to the member
of the Executive Management is extended to 24 months. In the
event of termination by Genmab (unless for cause) or by a member
of Executive Management as a result of a change of control
of Genmab, Genmab is obliged to pay a member of Executive
Management a compensation equal to his/her existing total salary
(including benefits) for up to two years in addition to the notice
period. In case of a change of control event and the termination
of service agreements of the Executive Management, the total
impact on our financial position is estimated to approximately DKK
145 million as of December 31, 2021 (2020: DKK 105 million).
129
2021 Annual Report / Financial Statements / Group Section 5 Other Disclosures / 5.7 Adjustments to Cash Flow Statements
5.7
Adjustments to Cash Flow Statements
(DKK million)
Note
2021
2020
2019
3.1, 3.2, 3.3
2.3, 4.6
Adjustments for non-cash transactions:
Depreciation, amortization and impairment
Share-based compensation expenses
Other
Total adjustments for non-cash transactions
Change in operating assets and liabilities:
Receivables
Deferred revenue
Other payables
Total change in operating assets and liabilities
248
310
(32)
526
(1,074)
–
304
(770)
259
200
–
459
306
513
168
987
139
147
5
291
(1,658)
–
440
(1,218)
5.8
Collaborations and Technology Licenses
Collaborations
Genmab enters into collaborations with biotechnology and
pharmaceutical companies to advance the development and
commercialization of our product candidates and to supplement
our internal pipeline. Genmab seeks collaborations that will allow
Genmab to retain significant future participation in product sales
through either profit-sharing or royalties paid on net sales. Below is
an overview of certain of Genmab’s collaborations that have had a
significant impact or are expected in the near term to have a signifi-
cant impact on financial results.
Janssen (Daratumumab/DARZALEX)
In 2012, Genmab, entered into a global license, development
and commercialization agreement with Janssen for daratumumab
(marketed as DARZALEX for IV administration and as DARZALEX
FASPRO in the United States and DARZALEX SC in Europe for SC
administration). Under this agreement, Janssen is fully responsible
for developing and commercializing daratumumab and all costs
associated therewith. Genmab receives tiered royalty payments
between 12% and 20% based on Janssen’s annual net product
sales. The royalties payable by Janssen are limited in time and
subject to reduction on a country-by-country basis for customary
reduction events, including upon patent expiration or invalidation
in the relevant country and upon the first commercial sale of a
biosimilar product in the relevant country (for as long as the biosim-
ilar product remains for sale in that country). Pursuant to the terms
of the agreement, Janssen’s obligation to pay royalties under this
agreement will expire on a country-by-country basis on the later
of the date that is 13 years after the first sale of daratumumab in
such country or upon the expiration of the last-to-expire relevant
product patent (as defined in the agreement) covering daratu-
mumab in such country. Genmab is also eligible to receive certain
additional payments in connection with development, regulatory
and sales milestones.
130
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Review
Financial
Statements
Other
Information
Refer to note 5.5 for detailed information regarding Genmab’s
legal matter of the Janssen Binding Arbitration.
Novartis (Ofatumumab/Kesimpta)
Genmab and GlaxoSmithKline (GSK) entered a co-development
and collaboration agreement for ofatumumab in 2006. The full
rights to ofatumumab were transferred from GSK to Novartis in
2015. Novartis is now fully responsible for the development and
commercialization of ofatumumab in all potential indications,
including autoimmune diseases. Genmab is entitled to a 10%
royalty payment of net sales for non-cancer treatments. In 2020
subcutaneous ofatumumab was approved by the U.S. FDA, as
Kesimpta, for the treatment of RMS in adults. Ofatumumab was also
previously approved as Arzerra for certain CLL indications. In 2019,
the marketing authorization for Arzerra was withdrawn in the EU
and several other territories. In August 2020, Genmab announced
that Novartis planned to transition Arzerra to an oncology access
program for CLL patients in the U.S. In 2020, Genmab recog-
nized USD 30 million lump sum from Novartis as payment for
lost potential royalties. Ofatumumab is no longer in development
for CLL.
Roche (Teprotumumab/TEPEZZA)
In May 2001, Genmab entered a collaboration with Roche to
develop human antibodies to disease targets identified by Roche.
In 2002, this alliance was expanded, and Roche made an equity
investment in Genmab. Under the agreement, Genmab will receive
milestones as well as royalty payments on successful products
and, in certain circumstances, Genmab could obtain rights to
develop products based on disease targets identified by Roche.
Teprotumumab was created by Genmab under the collabora-
tion with Roche and development and commercialization of the
product, approved in 2020 by the U.S. FDA, as TEPEZZA, for the
treatment of thyroid eye disease, is now being conducted by
Horizon Therapeutics under a license from Roche. Under the terms
of Genmab’s agreement with Roche, Genmab will receive mid-single
digit royalties on sales of TEPEZZA.
2021 Annual Report / Financial Statements / Group Section 5 Other Disclosures / 5.8 Collaborations and Technology Licenses
Seagen (Tisotumab vedotin/Tivdak)
In September 2010, Genmab and Seagen entered into an ADC
collaboration, and a commercial license and collaboration
agreement was executed in October 2011. Under the agreement,
Genmab was granted rights to utilize Seagen’s ADC technology
with its human monoclonal TF antibody. Seagen was granted
rights to exercise a co-development and co-commercialization
option at the end of Phase 1 clinical development for tisotumab
vedotin. In August 2017, Seagen exercised this option. In October
2020, Genmab and Seagen entered into a joint commercialization
agreement. Genmab will co-promote tisotumab vedotin in the U.S.,
and we will lead commercial operational activities and book sales
in Japan, while Seagen will lead operational commercial activities
in the U.S., Europe and China with a 50:50 cost and profit split in
those markets. In any other markets, Seagen will be responsible for
commercializing Tivdak and Genmab will receive royalties based on
a percentage of aggregate net sales ranging from the mid-teens to
the mid-twenties. The companies will continue the practice of joint
decision-making on the worldwide development and commercializa-
tion strategy for Tivdak.
AbbVie
On June 10, 2020, Genmab entered into a broad oncology collabo-
ration agreement with AbbVie to jointly develop and commercialize
epcoritamab, DuoHexaBody-CD37 and DuoBody-CD3x5T4, and a
discovery research collaboration for future differentiated antibody
therapeutics for cancer. For epcoritamab, the companies will share
commercial responsibilities in the U.S. and Japan, with AbbVie
responsible for further global commercialization. Genmab will be
the principal for net sales in the U.S. and Japan and receive tiered
royalties on remaining global sales outside of these territories. For
DuoHexaBody-CD37, DuoBody-CD3x5T4 and any product candi-
dates developed as a result of the companies’ discovery research
collaboration, Genmab and AbbVie will share responsibilities for
global development and commercialization in the U.S. and Japan.
Genmab retains the right to co-commercialize these products, along
with AbbVie, outside of the U.S. and Japan.
131
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Contents
Management’s
Review
Financial
Statements
Other
Information
For the discovery research collaboration, which combines propri-
etary antibodies from both companies along with Genmab’s
DuoBody technology platform and AbbVie’s payload and ADC tech-
nology, the companies will select and develop up to four additional
differentiated next-generation antibody-based product concepts,
potentially across both solid tumors and hematological malignan-
cies. Genmab will conduct Phase 1 studies for these programs and
AbbVie retains the right to opt-in to program development.
Under the terms of the agreement, Genmab received a USD
750 million upfront payment from AbbVie with the potential for
Genmab to receive up to USD 3.15 billion in additional develop-
ment, regulatory and sales milestone payments for all programs,
as well as tiered royalties between 22% and 26% on net sales for
epcoritamab outside the U.S. and Japan. Except for these royal-
ty-bearing sales, the parties share in pre-tax profits from the sale
of products on a 50:50 basis. Included in these potential mile-
stones are up to USD 1.15 billion in payments related to clinical
development and commercial success across the three bispecific
antibody programs originally included in the agreement, one of
which was subsequently stopped. In addition, and also included
in these potential milestones, if all four next-generation antibody
product candidates developed as a result of the discovery research
collaboration are successful, Genmab is eligible to receive up to
USD 2.0 billion in option exercise and success-based milestones.
Genmab and AbbVie split 50:50 the development costs related to
epcoritamab, DuoHexaBody-CD37 and DuoBody-CD3x5T4 while
Genmab will be responsible for 100% of the costs for the discovery
research programs up to opt-in.
In September 2021 we, along with AbbVie, decided that the data did
not support the further development of DuoBody-CD3x5T4.
BioNTech
In May 2015, Genmab entered an agreement with BioNTech to
jointly research, develop and commercialize bispecific antibody
products using Genmab’s DuoBody technology platform. Under
the terms of the agreement, BioNTech will provide proprietary
antibodies against key immunomodulatory targets, while Genmab
provides proprietary antibodies and access to its DuoBody tech-
nology platform. Genmab paid an upfront fee of USD 10 million to
BioNTech. If the companies jointly select any product candidates for
clinical development, development costs and product ownership
will be shared equally going forward. If one of the companies does
not wish to move a product candidate forward, the other company
is entitled to continue developing the product on predetermined
licensing terms. The agreement also includes provisions which
will allow the parties to opt out of joint development at key points.
Genmab and BioNTech have selected two product candidates
for clinical development, DuoBody-CD40x4-1BB (GEN1042) and
DuoBody-PD-L1x4-1BB (GEN1046), both of which are now in
clinical trials.
Janssen (DuoBody)
In July 2012, Genmab entered into a collaboration with Janssen
to create and develop bispecific antibodies using our DuoBody
technology platform. Under this original agreement, Janssen
had the right to use the DuoBody technology platform to create
panels of bispecific antibodies (up to 10 DuoBody programs) to
multiple disease target combinations. Genmab received an upfront
payment of USD 3.5 million from Janssen and will potentially be
entitled to milestone and license payments of up to approximately
USD 175 million, as well as royalties for each commercialized
DuoBody product.
Under the terms of a December 2013 amendment, Janssen was
entitled to work on up to 10 additional programs. Genmab received
an initial payment of USD 2 million from Janssen. Under the terms
of the original agreement, for each of the additional programs
that Janssen successfully initiates, develops and commercializes,
Genmab will potentially be entitled to receive average milestone
and license payments of approximately USD 191 million. In addition,
Genmab will be entitled to royalties on sales of any commercialized
products. All research work is funded by Janssen.
Janssen had exercised 14 licenses under this collaboration, not
all of which are active, and no further options remain for use
by Janssen. As of December 31, 2021, four DuoBody-based
2021 Annual Report / Financial Statements / Group Table of
Contents
Management’s
Review
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Statements
Other
Information
CureVac
Bolt Biotherapeutics
During December 2019, Genmab entered into a research collab-
oration and license agreement with CureVac AG. The strategic
partnership will focus on the research and development of differ-
entiated mRNA-based antibody products by combining CureVac’s
mRNA technology and know-how with Genmab’s proprietary
antibody technologies and expertise.
Under the terms of the agreement, Genmab provided CureVac with
a USD 10 million upfront payment. The companies will collaborate
on research to identify an initial product candidate and CureVac
will contribute a portion of the overall costs for the development
of this product candidate, up to the time of an Investigational New
Drug Application. Genmab would thereafter be fully responsible for
the development and commercialization of the potential product,
in exchange for USD 280 million in development, regulatory and
commercial milestones and tiered royalties in the range from
mid-single digits up to low-double digits to CureVac. The agreement
also includes three additional options for Genmab to obtain
commercial licenses to CureVac’s mRNA technology at pre-defined
terms, exercisable within a five-year period. If Genmab exercises
any of these options, it would fund all research and would develop
and commercialize any resulting product candidates with CureVac
eligible to receive between USD 275 million and USD 368 million
in development, regulatory and commercial milestone payments
for each product, dependent on the specific product concept. In
addition, CureVac is eligible to receive tiered royalties in the range
from mid-single digits up to low double digits per product. CureVac
would retain an option to participate in development and/or
commercialization of one of the potential additional programs under
predefined terms and conditions. Further, Genmab made a EUR
20 million equity investment in CureVac.
During 2021, Genmab sold 35% of its investment in common shares
of CureVac.
In the second quarter of 2021, Genmab and Bolt entered into an
oncology research and development collaboration. The companies
will evaluate Genmab antibodies and bispecific antibody engi-
neering technologies in combination with Bolt’s proprietary
Boltbody™ immune-stimulating antibody conjugate (ISAC) tech-
nology platform, with the goal of discovering and developing
next-generation, immune-stimulatory, antibody-based conjugate
therapeutics for the treatment of cancer. The research collabora-
tion will evaluate multiple bispecific ISAC concepts to identify up
to three clinical candidates for development. Genmab will fund the
research, along with the preclinical and clinical development of
these candidates through clinical proof of concept. Under the terms
of the agreement, Genmab paid Bolt an upfront payment of USD
10 million and made a USD 15 million equity investment in Bolt.
Bolt is eligible to receive total potential milestone payments of up
to USD 285 million per therapeutic candidate exclusively developed
and commercialized by Genmab, along with tiered royalties. If a
candidate is co-developed, development costs will be split 50:50
between the two companies, and the companies will be solely
responsible for commercialization costs in their respective territo-
ries and shall pay each other royalties on product sales.
5.9
Subsequent Events
No events have occurred subsequent to the balance sheet date
that could significantly affect the financial statements as of
December 31, 2021.
Section 5 Other Disclosures / 5.9 Subsequent Events
investigational medicines created under this collaboration were in
the clinic. One of these, RYBREVANT, is the first medicine created
using the DuoBody technology platform to receive regulatory
approval. A BLA for a second medicine utilizing the DuoBody
technology, teclistamab, was submitted to the U.S. FDA in
December 2021.
Novo Nordisk A/S
In August 2015, Genmab entered an agreement to grant Novo
Nordisk commercial licenses to use the DuoBody technology
platform to create and develop bispecific antibody candidates for
two therapeutic programs. The bispecific antibodies will target a
disease area outside of cancer therapeutics. After an initial period
of exclusivity for both target combinations, Novo Nordisk has
extended exclusivity of the commercial license for one target combi-
nation in 2018, now in clinical development as Mim8. Under the
exclusive license agreement, Genmab is entitled to potential devel-
opment, regulatory and sales milestones of up to approximately
USD 250 million. In addition, Genmab will be entitled to single digit
royalties on sales of any commercialized medicines. In December
2017, the collaboration was expanded with a new agreement for up
to an additional five potential target pair combinations, which may
be reserved on either an exclusive or non-exclusive basis, and three
commercial license options. This agreement contained similar termi-
nation provisions as the initial agreement.
Immatics
In July 2018, Genmab entered into a research collaboration and
exclusive license agreement with Immatics to discover and develop
next-generation bispecific immunotherapies to target multiple
cancer indications. Genmab received an exclusive license to three
proprietary targets from Immatics, with an option to license up
to two additional targets at predetermined economics. Under the
terms of the agreement, Genmab paid Immatics an upfront fee
of USD 54 million and Immatics is eligible to receive up to USD
550 million in development, regulatory and commercial milestone
payments for each product, as well as tiered royalties on net sales.
132
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Review
Financial
Statements
Other
Information
Table of Contents
Financial Statements of the Parent Company
Notes
134 Statements of Comprehensive Income
138 1 Accounting Policies
135 Balance Sheets
136 Statements of Cash Flows
139 2 Revenue
139 3 Staff Costs
137 Statements of Changes in Equity
140 4 Corporate and Deferred Tax
141 5 Intangible Assets
142 6 Property and Equipment
143 7 Leases
144 8 Other Investments
144 9 Receivables
144 10 Deferred Revenue
144 11 Other Payables
145 12 Marketable Securities
145 13 Financial Income and Expenses
145 14 Remuneration of the Board of Directors and Executive
Management
146 15 Related Party Disclosures
147 16 Investments in Subsidiaries
147 17 Commitments
148 18 Fees to Auditors Appointed at the Annual General
Meeting
148 19 Adjustments to Cash Flow Statements
133
2021 Annual Report / Financial Statements / Parent Company
Financial Statements of
the Parent Company
Statements of
Comprehensive
Income
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
(DKK million)
Revenue
Research and development expenses
Selling, general and administrative expenses
Operating expenses
Operating profit
Profit/(Loss) in subsidiaries, net of tax
Financial income
Financial expenses
Net profit before tax
Corporate tax
Net profit
Statement of Comprehensive Income
Net profit
Other comprehensive income:
Amounts which may be re-classified to the income statement:
Adjustment of foreign currency fluctuations on subsidiaries
Total comprehensive income
Note
2
3, 5, 6
3, 6
16
13
13
4
2021
8,509
(3,957)
(1,296)
(5,253)
3,256
(629)
1,610
(254)
3,983
(975)
3,008
2020
9,985
(3,041)
(637)
(3,678)
6,307
793
254
(1,519)
5,835
(1,077)
4,758
2019
5,392
(2,235)
(354)
(2,589)
2,803
(155)
238
(1)
2,885
(719)
2,166
3,008
4,758
2,166
27
3,035
(44)
4,714
6
2,172
134
2021 Annual Report / Financial Statements / Parent Company Financial Statements of
the Parent Company
Balance Sheets
135
(DKK million)
Assets
Intangible assets
Property and equipment
Right-of-use assets
Investments in subsidiaries
Receivables
Deferred tax assets
Other investments
Total non-current assets
Corporate tax receivable
Receivables
Receivables from subsidiaries
Marketable securities
Cash and cash equivalents
Total current assets
Total assets
Shareholders’ Equity and Liabilities
Share capital
Share premium
Other reserves
Retained earnings
Total shareholders’ equity
Provisions
Lease liabilities
Deferred revenue
Other payables
Total non-current liabilities
Payable to subsidiaries
Lease liabilities
Deferred revenue
Other payables
Total current liabilities
Total liabilities
Total shareholders’ equity and liabilities
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Note
December 31, 2021
December 31, 2020
5
6
7
16
9
4
8
4
9
9
12
7
10
11
11
7
10
11
236
13
12
1,311
8
252
27
1,859
39
3,187
79
10,381
8,783
22,469
24,328
66
12,029
81
10,020
22,196
6
–
487
–
493
770
11
26
832
1,639
2,132
24,328
304
10
24
1,622
6
177
14
2,157
250
2,379
143
8,819
7,133
18,724
20,881
66
11,894
54
7,107
19,121
4
11
487
1
503
358
12
26
861
1,257
1,760
20,881
2021 Annual Report / Financial Statements / Parent Company Financial Statements of
the Parent Company
Statements of
Cash Flows
136
(DKK million)
Cash flows from operating activities:
Net profit before tax
Reversal of financial items, net
Reversal of profit/(loss) in subsidiaries, net of tax
Adjustment for non-cash transactions
Change in operating assets and liabilities
Cash provided by operating activities before financial items
Interest received
Interest elements of lease payments
Interest paid
Corporate taxes (paid)/received
Net cash provided by operating activities
Cash flows from investing activities:
Investment in intangible assets
Investment in tangible assets
Transactions with subsidiaries
Marketable securities bought
Marketable securities sold
Other investments bought
Net cash (used in) investing activities
Cash flows from financing activities:
Warrants exercised
Shares issued for cash
Costs related to issuance of shares
Principal elements of lease payments
Purchase of treasury shares
Payment of withholding taxes on behalf of employees on net settled RSUs
Net cash provided by (used in) financing activities
Changes in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Exchange rate adjustments
Cash and cash equivalents at the end of the period
Cash and cash equivalents include:
Bank deposits
Short-term marketable securities
Cash and cash equivalents at the end of the period
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Note
2021
2020
2019
13
16
19
19
7
5
6
7
3,983
(1,356)
629
400
(1,024)
2,632
207
–
–
(739)
2,100
–
(7)
163
(15,514)
14,469
(18)
(907)
135
–
–
(13)
(447)
(50)
(375)
818
7,133
832
8,783
8,487
296
8,783
5,835
1,265
(793)
337
969
7,613
170
(1)
(11)
(1,476)
6,295
–
(3)
(47)
(12,414)
10,370
–
(2,094)
140
–
–
(12)
–
(25)
103
4,304
3,274
(445)
7,133
4,927
2,206
7,133
2,885
(237)
155
246
(1,340)
1,709
111
(1)
(13)
(476)
1,330
(23)
(5)
(329)
(5,812)
3,940
–
(2,229)
65
3,873
(238)
(12)
–
(9)
3,679
2,780
478
16
3,274
2,606
668
3,274
2021 Annual Report / Financial Statements / Parent Company Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
(DKK million)
Share capital
Share premium
Translation
reserves
Retained
earnings
Shareholders’
equity
Balance at December 31, 2018
61
8,059
92
Net profit
Other comprehensive income
Total comprehensive income
Exercise of warrants
Shares issued for cash
Expenses related to capital increases
Share-based compensation expenses
Net settlement of RSUs
Tax on items recognized directly in equity
–
–
–
1
3
–
–
–
–
–
–
–
64
3,870
(238)
–
–
–
Balance at December 31, 2019
65
11,755
Net profit
Other comprehensive income
Total comprehensive income
Exercise of warrants
Share-based compensation expenses
Net settlement of RSUs
Tax on items recognized directly in equity
–
–
–
1
–
–
–
–
–
–
139
–
–
–
Balance at December 31, 2020
66
11,894
Net profit
Other comprehensive income, net
Total comprehensive income
Transactions with owners:
Exercise of warrants
Purchase of treasury shares
Share-based compensation expenses
Net settlement of RSUs
Tax on items recognized directly in equity
–
–
–
–
–
–
–
–
–
–
–
135
–
–
–
–
Balance at December 31, 2021
66
12,029
–
6
6
–
–
–
–
–
–
98
–
(44)
(44)
–
–
–
–
54
–
27
27
–
–
–
–
–
81
(198)
2,166
–
2,166
–
–
–
147
(9)
24
2,130
4,758
–
4,758
–
200
(25)
44
7,107
3,008
–
3,008
–
(447)
310
(50)
92
8,014
2,166
6
2,172
65
3,873
(238)
147
(9)
24
14,048
4,758
(44)
4,714
140
200
(25)
44
19,121
3,008
27
3,035
135
(447)
310
(50)
92
10,020
22,196
Financial Statements of
the Parent Company
Statements of
Changes in Equity
Distribution of the Year’s Profit
The Board of Directors proposes that the parent company’s
2021 net profit of DKK 3,008 million (2020: net profit of DKK
4,758 million and 2019: net profit of DKK 2,166 million) be
carried forward to next year by transfer to retained earnings.
137
2021 Annual Report / Financial Statements / Parent Company Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
1
Accounting Policies
The financial statements of the parent company have been
prepared in accordance with the International Financial Reporting
Standards (IFRS) as issued by the International Accounting
Standards Board (IASB) and in accordance with IFRS as endorsed
by the EU and further requirements in the Danish Financial
Statements Act (Class D).
Please refer to note 1.1 in the consolidated financial statements
for a description of the accounting policies of the Group.
Please refer to note 1.3 in the consolidated financial statements
for a description of management’s judgements and estimates
under IFRS.
A number of new or amended standards became applicable for the
current reporting period. Genmab A/S did not have to change its
accounting policies as a result of the adoption of these standards.
Please refer to note 1.2 in the consolidated financial statements
for a description of new accounting policies and disclosures of
the Group.
Supplementary Accounting Policies
for the Parent Company
Investments in Subsidiaries
The equity method is used for measuring the investments in subsid-
iaries. Under the equity method, the investment in a subsidiary is
recognized on initial recognition at cost, and the carrying amount is
increased or decreased to recognize the parent company’s share of
the profit or loss of the investment after the date of acquisition. The
parent company’s share of profit or loss is recognized in the parent
company’s profit or loss. The parent company’s share of other
comprehensive income arising from the investment is recognized in
other comprehensive income of the parent company.
Share-based Compensation Expenses
In the financial statements for the parent company, expenses
and exercise proceeds related to employees in the subsidiaries
are allocated to the relevant subsidiary where the employee has
entered an employment contract.
Notes to
the Financial
Statements
of the Parent
Company
138
2021 Annual Report / Financial Statements / Parent Company Notes to the Financial Statements of the Parent Company / 2 Revenue
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
2
Revenue
(DKK million)
Revenue by type:
Royalties
Milestone revenue
Collaboration revenue
License revenue
Cost reimbursement
Total
Revenue by collaboration partner:
Janssen
AbbVie
Roche
BioNTech
Novartis
Seagen
Other collaboration partners
Total
3
Staff Costs
2019
(DKK million)
2021
2020
2019
3,155
1,869
–
–
368
5,392
4,983
–
7
115
23
226
38
Wages and salaries
Share-based compensation
Defined contribution plans
Other social security costs
Total
Staff costs are included in the income
statement as follows:
Research and development expenses
Selling, general and administrative expenses
Total
Average number of FTE
Number of FTE at year-end
277
49
22
15
363
271
92
363
269
312
182
35
15
21
253
191
62
253
180
210
140
34
11
13
198
148
50
198
136
154
Please refer to note 2.3 in the consolidated financial statements for additional information
regarding staff costs of the Group.
2021
6,977
954
20
–
558
8,509
6,847
245
603
416
236
135
27
2020
4,741
351
–
4,376
517
9,985
4,693
4,185
305
212
201
230
159
8,509
9,985
5,392
Please refer to note 2.1 in the consolidated financial statements for additional information
regarding revenue of the Group.
139
2021 Annual Report / Financial Statements / Parent Company Notes to the Financial Statements of the Parent Company / 4 Corporate and Deferred Tax
4
Corporate and Deferred Tax
Taxation — Income Statement & Shareholders’ Equity
Taxation — Balance Sheet
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
2021
2020
2019
Significant components of the deferred tax asset are as follows:
(DKK million)
Share-based instruments
Deferred revenue
Other temporary differences
Total deferred tax assets
2021
2020
130
113
9
252
43
113
21
177
Please refer to note 2.4 in the consolidated financial statements for additional information
regarding corporate and deferred tax of the Group.
(DKK million)
Current tax
Current tax on profit
Adjustment to deferred tax
Total tax for the period in the income statement
959
16
975
1,190
(113)
1,077
444
275
719
A reconciliation of Genmab’s effective tax rate relative to the Danish statutory tax rate is as follows:
(DKK million)
Net profit before tax
Tax at the Danish statutory corporation tax rate of 22% for all
periods
Tax effect of:
Non-deductible expenses/non-taxable income and other
permanent differences, net
All other
Total tax effect
Total tax for the period in the income statement
Total tax for the period in shareholders’ equity
Effective Tax Rate
2021
3,983
876
91
8
99
975
(31)
24.5%
2020
5,835
1,284
(201)
(6)
(207)
1,077
(44)
18.5%
2019
2,885
635
72
12
84
719
(24)
24.9%
140
2021 Annual Report / Financial Statements / Parent Company Notes to the Financial Statements of the Parent Company / 5 Intangible Assets
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
5
Intangible Assets
(DKK million)
2021
Cost at January 1
Additions for the year
Disposals for the year
Cost at December 31
Accumulated amortization and impairment at January 1
Amortization for the year
Impairment for the year
Disposals for the year
Accumulated amortization
Accumulated amortization and impairment at December 31
Carrying amount at December 31
2020
Cost at January 1
Additions for the year
Disposals for the year
Cost at December 31
Accumulated amortization and impairment at January 1
Amortization for the year
Impairment for the year
Disposals for the year
Accumulated amortization and impairment at December 31
Carrying amount at December 31
141
Licenses, Rights,
and Patents
(DKK million)
Amortization and impairments are included in the income
statement as follows:
Research and development expenses
Total
2021
2020
2019
72
72
119
119
95
95
Please refer to note 3.1 in the consolidated financial statements for additional information
regarding intangible assets of the Group.
820
–
–
820
(516)
(72)
–
–
4
(584)
236
820
–
–
820
(397)
(97)
(22)
–
(516)
304
2021 Annual Report / Financial Statements / Parent Company Notes to the Financial Statements of the Parent Company / 6 Property and Equipment
6
Property and Equipment
(DKK million)
2021
Cost at January 1
Additions for the year
Disposals for the year
Cost at December 31
Accumulated depreciation and impairment at January 1
Depreciation for the year
Impairment for the year
Disposals for the year
Accumulated depreciation and impairment at December 31
Carrying amount at December 31
2020
Cost at January 1
Additions for the year
Disposals for the year
Cost at December 31
Accumulated depreciation and impairment at January 1
Depreciation for the year
Impairment for the year
Disposals for the year
Accumulated depreciation and impairment at December 31
Carrying amount at December 31
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Leasehold
improvements
Equipment,
furniture and
fixtures
Assets under
construction
Total property
and equipment
4
–
–
4
(2)
(1)
–
–
(3)
1
4
–
–
4
(1)
(1)
–
–
(2)
2
23
2
–
25
(15)
(4)
–
–
(19)
6
23
3
(3)
23
(14)
(4)
–
3
(15)
8
–
6
–
6
–
–
–
–
–
6
–
–
–
–
–
–
–
–
–
–
27
8
–
35
(17)
(5)
–
–
(22)
13
27
3
(3)
27
(15)
(5)
–
3
(17)
10
(DKK million)
2021
2020
2019
Depreciation and impairments are included in the income statement as follows:
Research and development expenses
Selling, general and administrative expenses
Total
3
2
5
3
2
5
3
1
4
Please refer to note 3.2 in the consolidated financial statements for additional information regarding property and equipment
of the Group.
142
2021 Annual Report / Financial Statements / Parent Company
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Notes to the Financial Statements of the Parent Company / 7 Leases
7
Leases
The parent company has entered into lease agreements with respect to office space.
Future minimum payments under our leases as of December 31, 2021, December 31, 2020 and
December 31, 2019, are as follows:
The leases are non-cancellable for various periods up to 2038.
Amounts Recognized in the Balance Sheets
The balance sheet shows the following amounts relating to leases:
(DKK million)
Right-of-use assets
Properties
Total right-of-use assets
Lease liabilities
Current
Non-current
Total lease liabilities
There were no additions to the right-of-use assets in 2021.
(DKK million)
Payment due
Less than 1 year
1 to 3 years
December 31,
2021
December 31,
2020
More than 3 years but less than 5 years
More than 5 years
Total
2021
2020
2019
11
–
–
–
11
12
12
–
–
24
12
24
–
–
36
12
12
11
–
11
24
24
12
11
23
Significant Leases Not Yet Commenced
During 2020, Genmab entered into a lease agreement with respect to the new headquarters in Denmark
with a commencement date in March 2023 and is non-cancellable until March 2038. The total future
minimum payments over the term of the lease are approximately DKK 337 million and estimated capital
expenditures to fit out the space are approximately DKK 40 million.
Future minimum payments under our leases with commencement dates after December 31, 2021 are
not included in the table above.
Amounts Recognized in the Statements of Comprehensive Income
The statement of comprehensive income shows the following amounts relating to leases:
Please refer to note 3.3 in the consolidated financial statements for additional information
regarding leases of the Group.
(DKK million)
Depreciation charge of right-of-use assets
Properties
Total depreciation charge of right-of-use assets
Interest expense
December 31,
2021
December 31,
2020
December 31,
2019
13
13
1
13
13
1
11
11
1
Interest expense is included in net financial items in the statement of comprehensive income.
The total cash outflow for leases was DKK 13 million in 2021, 2020 and 2019.
143
2021 Annual Report / Financial Statements / Parent Company Notes to the Financial Statements of the Parent Company / 8 Other Investments
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
8
Other Investments
10
Deferred Revenue
Please refer to note 3.4 to the consolidated financial statements for additional information on other
investments of the Group.
(DKK million)
9
Receivables
(DKK million)
Receivables related to collaboration agreements
Receivables from subsidiaries
Interest receivables
Other receivables
Prepayments
Total
Non-current receivables
Current receivables
Total
2021
2,979
79
37
52
127
3,274
8
3,266
3,274
2020
2,176
143
55
18
136
2,528
6
2,522
2,528
Please refer to note 3.5 in the consolidated financial statements for additional information
regarding receivables of the Group.
144
Deferred revenue at January 1
Customer payment received
Revenue recognized during the year
Total at December 31
Non-current deferred revenue
Current deferred revenue
Total at December 31
2021
513
–
–
513
487
26
513
2020
–
4,911
(4,398)
513
487
26
513
Please refer to note 3.7 in the consolidated financial statements for additional information
regarding deferred revenue of the Group.
11
Other Payables
(DKK million)
Liabilities related to collaboration agreements
Staff cost liabilities
Other liabilities
Payable to subsidiaries
Accounts payable
Total at December 31
Non-current other payables
Current other payables
Total at December 31
2021
2020
53
67
577
770
135
1,602
–
1,602
1,602
15
56
721
358
70
1,220
1
1,219
1,220
Please refer to note 3.8 in the consolidated financial statements for additional information
regarding other payables of the Group.
2021 Annual Report / Financial Statements / Parent Company Notes to the Financial Statements of the Parent Company / 12 Marketable Securities
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
12
Marketable Securities
Please refer to note 4.4 to the consolidated financial statements for additional information on
marketable securities of the Group.
14
Remuneration of the Board of Directors
and Executive Management
The total remuneration of the Board of Directors and Executive Management is as follows:
13
Financial Income and Expenses
(DKK million)
Wages and salaries
Share-based compensation expenses
2021
2020
2019
Total
2021
2020
2019
12
9
21
10
8
18
(DKK million)
Financial income:
Interest and other financial income
Interest from subsidiaries
Gain on marketable securities, net
Gain on other investments, net
Foreign exchange rate gain, net
Total financial income
Financial expenses:
Interest and other financial expenses
Interest to subsidiaries
Loss on marketable securities, net
Loss on other investments, net
Foreign exchange rate loss, net
Total financial expenses
Net financial items
Interest and other financial income on financial assets
measured at amortized cost related to bank deposits
Interest and other financial expenses on financial liabilities
measured at amortized cost related to bank deposits
190
3
–
–
1,417
1,610
(1)
–
(246)
(7)
–
(254)
1,356
–
–
184
–
–
70
–
254
(2)
(3)
(91)
–
(1,423)
(1,519)
(1,265)
7
(1)
120
9
9
–
100
238
(1)
–
–
–
–
(1)
237
22
–
Please refer to note 4.5 in the consolidated financial statements for additional information
regarding financial income and expenses of the Group.
145
10
8
18
Total
3.6
1.0
1.1
2.0
0.9
8.6
The remuneration of each of the Executive Management is described below:
2021
(DKK million)
Base Salary
Defined
Contribution
Plans
Other
Benefits
Annual Cash
Bonus
Share-Based
Compensation
Expenses
Jan van de Winkel
Anthony Pagano
Anthony Mancini
Judith Klimovsky
Tahamtan Ahmadi1
Total
0.8
0.3
0.4
0.4
0.3
2.2
–
–
–
–
–
–
–
–
–
–
–
–
0.8
–
–
0.3
–
1.1
2.0
0.7
0.7
1.3
0.6
5.3
1. Tahamtan Ahmadi was appointed Chief Medical Officer, Head of Experimental Medicines and member of the Executive
Management in March 2021.
2020
(DKK million)
Base Salary
Defined
Contribution
Plans
Other
Benefits
Annual Cash
Bonus
Share-Based
Compensation
Expenses
Jan van de Winkel
Anthony Pagano1
Anthony Mancini2
Judith Klimovsky
David A. Eatwell1
Total
0.7
0.3
0.3
0.4
–
1.7
–
–
–
–
–
–
–
–
–
–
–
–
0.8
–
–
0.3
–
1.1
2.0
0.5
0.3
1.3
(0.2)
3.9
Total
3.5
0.8
0.6
2.0
(0.2)
6.7
1. David A. Eatwell stepped down as CFO on February 29, 2020, and Anthony Pagano was appointed CFO and member of
the Executive Management on March 1, 2020.
2. Anthony Mancini was appointed Chief Operating Officer and member of the Executive Management in March 2020.
2021 Annual Report / Financial Statements / Parent Company Notes to the Financial Statements of the Parent Company / 15 Related Party Disclosures
2019
(DKK million)
Base Salary
Defined
Contribution
Plans
Other
Benefits
Annual Cash
Bonus
Share-Based
Compensation
Expenses
Jan van de Winkel
David A. Eatwell
Judith Klimovsky
Total
0.7
0.4
0.4
1.5
–
–
–
–
–
–
–
–
1.3
–
0.2
1.5
1.5
0.8
1.0
3.3
Total
3.5
1.2
1.6
6.3
Remuneration of the Board of Directors for the parent is the same as the Group.
Please refer to note 5.1 in the consolidated financial statements for additional information
regarding the remuneration of the Board of Directors and Executive Management.
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
15
Related Party Disclosures
Genmab A/S’ related parties are the parent company’s subsidiaries, Board of Directors, Executive
Management, and close members of the family of these persons.
Transactions with Subsidiaries
Genmab B.V., Genmab Holding B.V., Genmab US, Inc. and Genmab K.K. are 100% (directly or indirectly)
owned subsidiaries of Genmab A/S and are included in the consolidated financial statements. They
perform certain research and development, selling, general and administrative, and management activ-
ities on behalf of the parent company. Genmab B.V. owns the HexaBody technology platform and the
parent company performs certain research and development activities related to the HexaBody tech-
nology platform on behalf of Genmab B.V. All intercompany transactions have been eliminated in the
consolidated financial statements of the Genmab Group.
(DKK million)
2021
2020
2019
Transactions with subsidiaries:
Income statement:
Service fee income
Service fee costs
Financial income
Financial expense
Balances with subsidiaries:
Current receivables
Current payables
124
(2,578)
3
–
79
(770)
86
(1,652)
–
(3)
143
(358)
26
(937)
9
–
42
(305)
Genmab A/S has placed at each subsidiary’s disposal a credit facility (denominated in local currency)
that the subsidiary may use to draw from in order to secure the necessary funding of its activities.
Please refer to note 5.2 to the consolidated financial statements for additional information
regarding transactions with related parties of the Group.
146
2021 Annual Report / Financial Statements / Parent Company Notes to the Financial Statements of the Parent Company / 16 Investments in Subsidiaries
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
16
Investments in Subsidiaries
17
Commitments
Genmab A/S holds investments either directly or indirectly in the following subsidiaries:
Guarantees and Collaterals
Name
Domicile
Genmab B.V.
Utrecht, the Netherlands
Genmab Holding B.V.
Utrecht, the Netherlands
Genmab US, Inc.
New Jersey, USA
Genmab K.K.
Tokyo, Japan
(DKK million)
Cost at January 1
Additions
Cost at December 31
Value adjustments at January 1
Profit/(loss) in subsidiaries, net of tax
Exchange rate adjustment
Value adjustments at December 31
Investments in subsidiaries at December 31
Ownership and votes
2021
Ownership and votes
2020
Other Purchase Obligations
There were no bank guarantees as of December 31, 2021 or 2020.
100%
100%
100%
100%
2021
1,228
291
1,519
394
(629)
27
(208)
1,311
100%
100%
100%
100%
2020
1,008
220
1,228
(355)
793
(44)
394
1,622
Genmab A/S has entered into a number of agreements primarily related to research and development
activities. These short term contractual obligations amounted to approximately DKK 1,207 million as of
December 31, 2021, all of which is due in less than two years (2020: approximately DKK 970 million).
Genmab A/S also has certain contingent commitments under our license and collaboration agreements
that may become due for future payments. As of December 31, 2021, these contingent commitments
amounted to approximately DKK 14,371 million (approximately USD 2,190 million) in potential future
development, regulatory and commercial milestone payments to third parties under license and
collaboration agreements for our preclinical and clinical stage development programs as compared to
approximately DKK 11,591 million (approximately USD 1,915 million) as of December 31, 2020. These
milestone payments generally become due and payable only upon the achievement of certain develop-
ment, clinical, regulatory or commercial milestones. The events triggering such payments or obligations
have not yet occurred.
In addition to the above obligations, Genmab A/S enters into a variety of agreements and financial
commitments in the normal course of business. The terms generally allow us the option to cancel,
reschedule and adjust our requirements based on our business needs prior to the delivery of goods or
performance of services. It is not possible to predict the maximum potential amount of future payments
under these agreements due to the conditional nature of our obligations and the unique facts and
circumstances involved in each particular agreement.
Please refer to note 5.4 in the consolidated financial statements for additional information
regarding commitments of the Group.
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2021 Annual Report / Financial Statements / Parent Company Notes to the Financial Statements of the Parent Company / 18 Fees to Auditors Appointed at the Annual General Meeting
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
18
Fees to Auditors Appointed at the Annual General Meeting
19
Adjustments to Cash Flow Statements
2021
2020
2019
(DKK million)
Note
2021
2020
2019
Adjustments for non-cash transactions:
Depreciation, amortization and impairment
Share-based compensation expenses
Total adjustments for non-cash transactions
5, 6, 7
3
Change in operating assets and liabilities:
Receivables
Deferred revenue
Other payables
Total change in operating assets and liabilities
90
310
400
(993)
–
(31)
(1,024)
137
200
337
320
513
136
969
99
147
246
(1,640)
–
300
(1,340)
Please refer to note 5.7 in the consolidated financial statements for additional information
regarding adjustments to the cash flow statement of the Group.
(DKK million)
PricewaterhouseCoopers
Audit services
Audit-related services
Tax and VAT services
Other services
Total
5.8
1.8
–
–
7.6
4.9
1.0
0.3
–
6.2
1.7
2.3
0.5
2.4
6.9
Fees for other services than statutory audit of the financial statements provided by
PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab amounted to DKK 1.8 million in
2021 (DKK 1.3 million in 2020 and DKK 5.2 million in 2019, respectively). These services primarily
include agreed-upon procedures, other assurance assessments and reports, accounting advice, educa-
tional training, and tax and VAT compliance. The decrease in fees from 2019 to 2020 was driven by
additional services relating to Genmab’s IPO on the Nasdaq in the U.S.
Please refer to note 5.6 in the consolidated financial statements for additional information
regarding fees to auditors of the Group.
148
2021 Annual Report / Financial Statements / Parent Company Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Directors’ and
Management’s
Statement on the
Annual Report
The Board of Directors and Executive Management have today considered and adopted the Annual Report of Genmab A/S for the financial
year January 1 to December 31, 2021.
The Annual Report has been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International
Accounting Standards Board (IASB) and in accordance with IFRS as endorsed by the EU and further requirements in the Danish Financial
Statements Act.
In our opinion, the Consolidated Financial Statements and the Parent Company Financial Statements give a true and fair view of the
financial position at December 31, 2021 of the Group and the Parent Company and of the results of the Group and Parent Company opera-
tions and cash flows for 2021.
In our opinion, Management’s Review includes a true and fair account of the development in the operations and financial circumstances of
the Group and the Parent Company, of the results for the year and of the financial position of the Group and the Parent Company as well as
a description of the most significant risks and elements of uncertainty facing the Group and the Parent Company.
In our opinion, the Annual Report of Genmab A/S for the financial year January 1 to December 31, 2021, with the file name
529900MTJPDPE4MHJ122-2021-12-31-en.zip is prepared, in all material respects, in compliance with the ESEF Regulation.
We recommend that the Annual Report be adopted at the Annual General Meeting.
Copenhagen, February 16, 2022
Executive Management
Jan van de Winkel
(President & CEO)
Board of Directors
Anthony Pagano
(Executive Vice
President & CFO)
Judith Klimovsky
(Executive Vice
President & CDO)
Anthony Mancini
(Executive Vice
President & COO)
Tahamtan Ahmadi
(Executive Vice
President & CMO)
Deirdre P. Connelly
(Chair)
Pernille Erenbjerg
(Deputy Chair)
Anders Gersel Pedersen
Rolf Hoffmann
149
2021 Annual Report / Directors’ and Management’s Statement
on the Annual Report
Paolo Paoletti
Mijke Zachariasse
(Employee elected)
Peter Storm Kristensen
(Employee elected)
Rima Bawarshi Nassar
(Employee elected)
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
To the shareholders of Genmab A/S
Report on the Audit of the Financial Statements
Our Opinion
Basis for Opinion
In our opinion, the Consolidated Financial Statements and the
Parent Company Financial Statements give a true and fair view
of the Group’s and the Parent Company’s financial position at
December 31, 2021 and of the results of the Group’s and the
Parent Company’s operations and cash flows for the financial year
January 1 to December 31, 2021 in accordance with International
Financial Reporting Standards as issued by the International
Accounting Standards Board, International Financial Reporting
Standards as adopted by the EU and further requirements in the
Danish Financial Statements Act.
Our opinion is consistent with our Auditor’s Long-form Report to
the Audit and Finance Committee and the Board of Directors.
What we have audited
The Consolidated Financial Statements and Parent Company
Financial Statements of Genmab A/S for the financial year January 1
to December 31, 2021 comprise statements of comprehensive
income, balance sheets, statements of cash flows, statements
of changes in equity and notes, including summary of significant
accounting policies for the Group as well as for the Parent Company.
Collectively referred to as the “Financial Statements”.
We conducted our audit in accordance with International Standards
on Auditing (ISAs) and the additional requirements applicable in
Denmark. Our responsibilities under those standards and require-
ments are further described in the Auditor’s responsibilities for the
audit of the Financial Statements section of our report.
We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion.
Independence
We are independent of the Group in accordance with the
International Ethics Standards Board for Accountants’ International
Code of Ethics for Professional Accountants (IESBA Code) and the
additional ethical requirements applicable in Denmark. We have
also fulfilled our other ethical responsibilities in accordance with
these requirements and the IESBA Code.
To the best of our knowledge and belief, prohibited non-audit
services referred to in Article 5(1) of Regulation (EU) No 537/2014
were not provided.
Appointment
Following the listing of the shares of Genmab A/S on Nasdaq
Copenhagen, we were first appointed auditors of Genmab A/S on
March 22, 2001. We have been reappointed annually by share-
holder resolution for a total period of uninterrupted engagement of
21 years including the financial year 2021.
Independent
Auditor’s Reports
150
2021 Annual Report / Independent Auditor’s Reports
Independent Auditor’s Reports / Report on the Audit of the Financial Statements
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the Financial Statements
for 2021. These matters were addressed in the context of our audit of the Financial Statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters.
Key audit matter
How our audit addressed the key audit matter
• We tested certain internal controls over the process to record
revenue, including controls related to the estimate of the
variable consideration.
• We evaluated and tested Management’s process for
determining the variable consideration and assessing the
reasonableness of the estimate. This included (i) gaining
an understanding of the Company’s process around the
accounting and reporting for the arbitration; (ii) discussing
the status of the arbitration with the Company’s in-house
legal counsel as well as obtaining legal letter from the
external legal counsel; (iii) evaluating the reasonableness of
Management’s estimate regarding recognition of the variable
consideration; and (iv) evaluating the presentation and
disclosure within the Financial Statements.
Revenue recognition of DARZALEX
• In September 2020, the Company commenced binding
arbitration of matters arising under its license agreement
with Janssen Biotech, Inc. (Janssen) relating to DARZALEX.
The arbitration is to settle whether the Company is required
to share in Janssen’s royalty payments to Halozyme
Therapeutics, Inc. (Halozyme) for the Halozyme enzyme
technology used in the SC formulation of daratumumab.
Janssen has started reducing its royalty payments to the
Company by what it claims to be the Company’s share of
Janssen’s royalty payments to Halozyme beginning in the
second quarter of 2020 and through December 31, 2021.
Based on discussions with external and in-house legal
counsel, the Company has considered revenue subject to this
arbitration as a variable consideration where it is not highly
probable that the Company will not reverse this revenue
in the future. Therefore, the Company has not recognized
revenue in relation to the royalty payments subject to the
arbitration. The estimated life to date impact on royalty
revenue is DKK 501 million.
• In relation to the revenue recognition of DARZALEX it requires
that Management make a significant judgement when
determining the estimate of the variable consideration.
• We focused on the revenue recognition of DARZALEX
because estimating the variable consideration requires
significant judgement by Management.
• Reference is made to note 5.5.
151
2021 Annual Report / Independent Auditor’s Reports
Table of
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Management’s
Review
Financial
Statements
Other
Information
Statement on Management’s Review
Management is responsible for Management’s Review.
Our opinion on the Financial Statements does not cover
Management’s Review, and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the Financial Statements, our
responsibility is to read Management’s Review and, in doing so,
consider whether Management’s Review is materially inconsistent
with the Financial Statements or our knowledge obtained in the
audit, or otherwise appears to be materially misstated.
Moreover, we considered whether Management’s Review includes
the disclosures required by the Danish Financial Statements Act.
Based on the work we have performed, in our view, Management’s
Review is in accordance with the Consolidated Financial Statements
and the Parent Company Financial Statements and has been
prepared in accordance with the requirements of the Danish
Financial Statements Act. We did not identify any material misstate-
ment in Management’s Review.
Management’s Responsibilities for
the Financial Statements
Management is responsible for the preparation of consolidated
financial statements and parent company financial statements that
give a true and fair view in accordance with International Financial
Reporting Standards as issued by the International Accounting
Standards Board, International Financial Reporting Standards as
adopted by the EU and further requirements in the Danish Financial
Statements Act, and for such internal control as Management
determines is necessary to enable the preparation of financial state-
ments that are free from material misstatement, whether due to
fraud or error.
In preparing the Financial Statements, Management is respon-
sible for assessing the Group’s and the Parent Company’s ability
to continue as a going concern, disclosing, as applicable, matters
Independent Auditor’s Reports / Report on Compliance with the ESEF Regulation
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
related to going concern and using the going concern basis of
accounting unless Management either intends to liquidate the
Group or the Parent Company or to cease operations, or has no
realistic alternative but to do so.
Auditor’s Responsibilities for the Audit
of the Financial Statements
Our objectives are to obtain reasonable assurance about whether
the Financial Statements as a whole are free from material misstate-
ment, whether due to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a high level
of assurance, but is not a guarantee that an audit conducted in
accordance with ISAs and the additional requirements applicable in
Denmark will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken on
the basis of these Financial Statements.
As part of an audit in accordance with ISAs and the additional
requirements applicable in Denmark, we exercise professional
judgement and maintain professional skepticism throughout the
audit. We also:
• Identify and assess the risks of material misstatement of the
Financial Statements, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate to provide a basis
for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion
on the effectiveness of the Group’s and the Parent Company’s
internal control.
• Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures
made by Management.
• Conclude on the appropriateness of Management’s use of the
going concern basis of accounting and based on the audit
evidence obtained, whether a material uncertainty exists related
to events or conditions that may cast significant doubt on the
Group’s and the Parent Company’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to the related
disclosures in the Financial Statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on
the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Group or the
Parent Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the
Financial Statements, including the disclosures, and whether the
Financial Statements represent the underlying transactions and
events in a manner gives a true and fair view.
• Obtain sufficient appropriate audit evidence regarding the
financial information of the entities or business activities within
the Group to express an opinion on the Consolidated Financial
Statements. We are responsible for the direction, supervision and
performance of the group audit. We remain solely responsible for
our audit opinion.
We communicate with those charged with governance regarding,
among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
We also provide those charged with governance with a statement
that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and
other matters that may reasonably be thought to bear on our inde-
pendence, and where applicable, actions taken to eliminate threats
or safeguards applied.
From the matters communicated with those charged with gover-
nance, we determine those matters that were of most significance
in the audit of the Financial Statements of the current period and
are therefore the key audit matters. We describe these matters in
our auditor’s report unless law or regulation precludes public disclo-
sure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report
because the adverse consequences of doing so would reason-
ably be expected to outweigh the public interest benefits of such
communication.
Report on Compliance with
the ESEF Regulation
As part of our audit of the Financial Statements we performed
procedures to express an opinion on whether the annual report of
Genmab A/S for the financial year January 1 to December 31, 2021
with the file name 529900MTJPDPE4MHJ122-2021-12-31-en.zip
is prepared, in all material respects, in compliance with the
Commission Delegated Regulation (EU) 2019/815 on the European
Single Electronic Format (ESEF Regulation) which includes require-
ments related to the preparation of the annual report in XHTML
format and iXBRL tagging of the Consolidated Financial Statements.
Management is responsible for preparing an annual report that
complies with the ESEF Regulation. This responsibility includes:
• The preparing of the annual report in XHTML format;
• The selection and application of appropriate iXBRL tags, including
extensions to the ESEF taxonomy and the anchoring thereof to
elements in the taxonomy, for all financial information required to
be tagged using judgement where necessary;
• Ensuring consistency between iXBRL tagged data and the
Consolidated Financial Statements presented in human-readable
format; and
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Table of
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Management’s
Review
Financial
Statements
Other
Information
• For such internal control as Management determines necessary to
enable the preparation of an annual report that is compliant with
the ESEF Regulation.
In our opinion, the annual report of Genmab A/S for the financial
year January 1 to December 31, 2021 with the file name
529900MTJPDPE4MHJ122-2021-12-31-en.zip is prepared, in all
material respects, in compliance with the ESEF Regulation.
Hellerup, February 16, 2022
PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab
CVR no 3377 1231
Rasmus Friis Jørgensen
State Authorised Public
Accountant
mne28705
Henrik Trangeled Kristensen
State Authorised Public
Accountant
mne23333
Our responsibility is to obtain reasonable assurance on whether the
annual report is prepared, in all material respects, in compliance
with the ESEF Regulation based on the evidence we have obtained,
and to issue a report that includes our opinion. The nature, timing
and extent of procedures selected depend on the auditor’s
judgement, including the assessment of the risks of material depar-
tures from the requirements set out in the ESEF Regulation, whether
due to fraud or error. The procedures include:
• Testing whether the annual report is prepared in XHTML format;
• Obtaining an understanding of the company’s iXBRL tagging
process and of internal control over the tagging process;
• Evaluating the completeness of the iXBRL tagging of the
Consolidated Financial Statements;
• Evaluating the appropriateness of the company’s use of iXBRL
elements selected from the ESEF taxonomy and the creation
of extension elements where no suitable element in the ESEF
taxonomy has been identified;
• Evaluating the use of anchoring of extension elements to elements
in the ESEF taxonomy; and
• Reconciling the iXBRL tagged data with the audited Consolidated
Financial Statements.
153
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Other
Information
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Other Information
155 Glossary
156 Forward Looking Statement
157 Contact Information
154
2021 Annual Report / Other Information Glossary
American Depository Shares (ADSs)
A U.S. dollar-denominated equity share of a
foreign-based company available for purchase on
an American stock exchange.
Antibody-drug conjugate (ADC)
Antibody with potent cytotoxic agents (toxins)
coupled to it.
Antigen
Immunogen. A target molecule that is specifically
bound by an antibody.
Apoptosis
A form of programmed cell death.
Biologics License Application (BLA)
A submission to apply for marketing approval from
the U.S. FDA, which contains specific information
on the manufacturing processes, chemistry,
pharmacology, clinical pharmacology and the
medical effects of a biologic product.
Bispecific antibody
An antibody in which the two binding regions are
not identical, with each region directed against
two different antigens or against two different
sites on the same antigen.
Building Research Establishment
Environmental Assessment Method
(BREEAM)
A sustainability assessment method for
infrastructure and buildings.
155
Clinical
Term used to refer to drugs that are at the stage
of being investigated in humans to determine the
safety and efficacy of the drug before it can be
submitted for approval by regulatory authorities.
Complement dependent cytotoxicity (CDC)
An antibody effector function that eliminates
target cells.
Corporate Social Responsibility (CSR)
Business model that enables a corporation to be
socially accountable to itself, its stakeholders and
its community.
Cytotoxic
Toxic to living cells.
Dual-listed company
A company whose shares are traded on two
stock markets.
Epitope
The specific surface portion of an antigen to which
an antibody binds. Upon binding of the antibody
to the epitope an immune response is elicited.
Environmental, Social and Governance
(ESG)
Set of standards for a company’s operations.
European Medicines Agency (EMA)
European regulatory agency that facilitates
development and access to medicines, evaluates
applications for marketing authorization and
monitors the safety of medicines.
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
Hexamerization
The ordered clustering of six antibodies.
Immunomodulatory agent
A type of drug used to treat certain types of
cancers, such as multiple myeloma. Examples
include lenalidomide and pomalidomide.
Progression free survival (PFS)
Progression free survival. The length of time a
patient lives without his/her disease worsening.
Proteasome inhibitor (PI)
A type of drug used to treat certain types of
cancer, such as multiple myeloma. Examples
include bortezomib and carfilzomib.
Leadership in Energy and Environmental
Design (LEED)
Globally recognized green building rating system.
Subcutaneous (SC)
Applied under the skin.
Monoclonal
Derived from a single cell. Monoclonal antibodies
derived from such single cell will be identical.
Target
A molecule of potential interest against which an
antibody is raised/created.
Monotherapy
Treatment of a medical condition by use of a
single drug.
Preclinical
Term used to refer to products that are at the
stage of being investigated in the laboratory or in
animals to determine the safety and efficacy of
the product before it is tested in humans.
Priority Review
U.S. FDA designation used for drugs that, if
approved, would be significant improvements
in the safety or effectiveness of the treatment,
diagnosis, or prevention of serious conditions
when compared to standard applications.
Transgenic mouse
A mouse carrying a transgene from a foreign
species, typically a human, which transgene has
been introduced into the replicating cells of the
mouse, so the transgene is passed on to future
generations/offspring of the transgenic mouse.
U.S. Food and Drug Administration
(U.S. FDA)
U.S. regulatory agency responsible for ensuring
the safety, efficacy and security of human
and veterinary drugs, biological products and
medical devices.
2021 Annual Report / Other Information Forward Looking Statement
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
This Annual Report 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 product discovery and development, uncertainties
related to the outcome and conduct of clinical trials including unforeseen safety
issues, uncertainties related to product manufacturing, 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. Additional factors that could cause our actual results
or performance to differ materially could also include and are not limited to the risk
and uncertainties related to regulatory action, reimbursement, market adoption by
physicians or lack of market acceptance of our products, the risk that the company or
our collaborators may be delayed or unsuccessful in planned clinical trial initiations,
enrollment and planned regulatory submissions and approvals in the U.S. and other
countries. For a further discussion of these risks, please refer to the section “Risk
Management” in this Annual Report and the risk factors included in Genmab’s 2021
Annual Report on Form 20-F and other filings with the U.S. Securities and Exchange
Commission (SEC). Genmab does not undertake any obligation to update or revise
forward looking statements in this Annual Report nor to confirm such statements to
reflect subsequent events or circumstances after the date made or in relation to actual
results, unless required by law.
156
Genmab A/S and/or its subsidiaries own the following trademarks: Genmab®; the
Y-shaped Genmab logo®; Genmab in combination with the Y-shaped Genmab logo®;
HuMax®; DuoBody®; DuoBody in combination with the DuoBody logo®; HexaBody®;
HexaBody in combination with the HexaBody logo®; DuoHexaBody® and HexElect®.
Tivdak® is a trademark of Seagen Inc.; Arzerra® is a trademark of Novartis Pharma
AG. Kesimpta® and Sensoready® are trademarks of Novartis AG or its affiliates;
DARZALEX®, DARZALEX FASPRO®, and RYBREVANT® are trademarks of Johnson &
Johnson; Boltbody™ is a trademark of Bolt Biotherapeutics; EPCORE™ is a trademark
of AbbVie Biotechnology Ltd.; TEPEZZA® is a trademark of Horizon Therapeutics
Ireland DAC. ©2022, Genmab A/S. All rights reserved.
Photograph credits:
Andrei Jackamets, Tuala Hjarnø, 3FX, Inc., Joost Melis and Rob Walbers, un +plus un
management inc.
About Genmab A/S
Genmab is an international biotechnology company with a core purpose to improve
the lives of people with cancer. For more than 20 years, Genmab’s vision to transform
cancer treatment has driven its passionate, innovative and collaborative teams to invent
next-generation antibody technology platforms and leverage translational research and
data science, fueling multiple differentiated cancer treatments that make an impact on
people’s lives. To develop and deliver novel therapies to patients, Genmab has formed
20+ strategic partnerships with biotechnology and pharmaceutical companies. Genmab’s
proprietary pipeline includes bispecific T-cell engagers, next-generation immune check-
point modulators, effector function enhanced antibodies and antibody-drug conjugates.
Genmab is headquartered in Copenhagen, Denmark with locations in Utrecht, the
Netherlands, Princeton, New Jersey, U.S. and Tokyo, Japan. For more information,
please visit Genmab.com and follow us on Twitter.com/Genmab.
2021 Annual Report / Other Information Contact Information
Genmab A/S
Kalvebod Brygge 43
1560 Copenhagen V
Denmark
T. +45 70 20 27 28
Genmab US, Inc.
777 Scudders Mill Road
Plainsboro, NJ 08536
USA
T. +1 609 430 2481
Genmab B.V. & Genmab Holding B.V.
Uppsalalaan 15
3584 CT Utrecht
The Netherlands
T. +31 30 2 123 123
Genmab K.K.
Midtown Tower
9-7-1 Akasaka, Minato-ku
Tokyo 107-6235
Japan
T. +81 3 5403 6330
LEI Code 529900MTJPDPE4MHJ122
157
Table of
Contents
Management’s
Review
Financial
Statements
Other
Information
www.genmab.com
2021 Annual Report / Other Information