Cost controls help reduce operating loss for Genmab
Receives upfront payment from GSK
Danish biotechnology company Genmab reduced its operating loss to DKK161m (US$29m) in 2010, its lowest in 10 years. Revenue was DKK582m ($104m), compared with DKK586m in 2009.
Genmab chief executive Jan van de Winkel attributed the reduced operating loss for the Copenhagen-based company to amendments to its ofatumumab (Arzerra) agreement with GlaxoSmithKline and a strong focus on cost savings and control.
The company achieved its first full year of Arzerra sales of DKK270m, resulting in DKK54m in royalty payments to Genmab.
Going forward, the firm will continue to focus on cost control initiatives in 2011, adhering to its strategy to build a profitable and successful business, he said.
Genmab finished the year with DKK1.55bn ($275m) in cash, primarily owing to an upfront payment of DKK815m from GSK and DKK56m from an antibody development agreement with Lundbeck.
The company expects its 2011 revenue to be between DKK325–350m. The reduction is mostly due to the inclusion of two development milestones related to the agreement with GSK totalling DKK203m in 2010. No GSK development milestones will be included in 2011.
The operating loss from continuing operations in 2011 will be approximately DKK350–400m, compared with the operating loss of DKK161m reported for 2010.