Investment thesis - GMAB

Genmab is a high-margin biotech company whose stock has declined due to concerns over the expiration of its DARZALEX royalties. The investment thesis argues that these fears are overblown, as the projected cash flow from DARZALEX alone supports a higher valuation. Furthermore, the market is undervaluing the company's proprietary pipeline of drugs like EPKINLY and Tivdak, which represent significant future revenue streams. With a strong balance sheet, no debt, and trading at a discount to its peers, Genmab presents an attractive risk/reward opportunity with a potential upside of over 50%.