William Blair initiated research coverage of Genmab A/S (GMAB $43.50) and Janux Therapeutics, Inc. (JANX $16.95). Genmab’s R&D antibody engine has produced several blockbuster assets and significant royalty streams, providing funding for partnered and wholly owned assets. Janux Therapeutics is developing a pipeline of T-cell directed antibody therapies for immuno-oncology applications using the company’s proprietary TRACTr and TRACIr platforms.

In conjunction with the initiations, analyst Matt Phipps, Ph.D. published a second volume of his Getting Into (Bi)Specifics industry report looking at key features of bispecific antibodies. The report provides an in-depth look at T-cell engagers (TCEs), including TCEs developed through Genmab’s DuoBody platform and Janux’s TRACTr platform.

In his report on Janux, Dr. Phipps said, “Janux’s TRACTr platform represents a differentiated approach to TCE development designed to improve therapeutic windows and enable targeting antigens with broader expression. While the TCE class has seen significant success in hematologic malignancies with validated antigens, efficacy in solid tumors has been limited by pharmacokinetics, antidrug antibodies, and immune-mediated toxicities due to broad activation of T cells. We believe the cleavable peptide masks of the TRACTr platform will effectively limit on-target, off-tumor activity on healthy tissue. The addition of an albumin binding domain extends the half-life of intact TRACTrs while facilitating rapid elimination of the unmasked TRACTr in the periphery. Janux’s lead TRACTr program, JANX007, is designed to guide T cells to prostate cancer cells based on the expression of PSMA, a surface antigen overexpressed on more than 90% of prostate cancers; JANX007 recently entered clinical development with interim data expected in the second half of 2023. Janux’s second TRACTr, JANX008, targets EGFR with an IND filing expected before the end of 2022. Additional pipeline assets are also in development, setting the company up for continued expansion.”

Genmab, meanwhile, has multiple clinical candidates employing its technology in late-stage development. “Since its inception in 1999, Genmab has proved its capabilities as an R&D antibody powerhouse, with three approvals of out-licensed assets either at or well on their way to mega-blockbuster product status,” Dr. Phipps said. “We believe the mix of significant royalty revenue from blockbuster products—Darzalex, Tepezza, and Kesimpta, which we estimate have a combined CAGR of 18% over the next three years—provides significant cash flow for the company. However, we believe the focus is on the launch of partnered programs, including Tivdak and epcoritamab, as well as development of pipeline programs, namely GEN1046 and GEN3014. While Tivdak and epcoritamab show compelling profiles with longer-term upside from label expansion, initial commercial indications are limited and additional time will be needed for intriguing pipeline programs to take shape.”

William Blair is the premier global boutique with expertise in investment banking, investment management, and private wealth management. We provide advisory services, strategies, and solutions to meet our clients’ evolving needs. As an independent and employee-owned firm, together with our strategic partners, we operate in more than 20 offices worldwide.* 

View our research coverage list

*Includes strategic partnerships with Allier Capital, BDA Partners, and Poalim Capital Markets.

William Blair or an affiliate does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. This report is not intended to provide personal investment advice. The opinions and recommendations herein do not take into account individual client circumstances, objectives, or needs and are not intended as recommendations of particular securities, financial instruments, or strategies to particular clients. The recipient of this report must make its own independent decisions regarding any securities or financial instruments mentioned herein.

William Blair or an affiliate is a market maker in the security of Genmab A/S and Janux Therapeutics, Inc.

William Blair or an affiliate expects to receive or intends to seek compensation for investment banking services from Genmab A/S and Janux Therapeutics, Inc. or an affiliate within the next three months.

Officers and employees of William Blair or its affiliates (other than research analysts) may have a financial interest in securities of Genmab A/S and Janux Therapeutics, Inc.

Please contact us at +1 800 621 0687 or view disclosures on our coverage list.

Additional information is available upon request.

Current Ratings Distribution (as of 11/13/22)

Coverage Universe
Outperform (Buy): 72%
Market Perform (Hold): 28%
Underperform (Sell): 1%

Inv. Banking Relationships*
Outperform (Buy): 9%
Market Perform (Hold): 4%
Underperform (Sell): 0%

* Percentage of companies in each rating category that are investment banking clients, defined as companies for which William Blair has received compensation for investment banking services within the past 12 months.

The compensation of the research analyst is based on a variety of factors, including the quality and accuracy of research, client feedback, contributions to other firm departments, competitive factors, and firm profitability.

OTHER IMPORTANT DISCLOSURES

Stock ratings and valuation methodologies: William Blair & Company, L.L.C. uses a three-point system to rate stocks. Individual ratings reflect the expected performance of the stock relative to the broader market (generally the S&P 500, unless otherwise indicated) over the next 12 months. The assessment of expected performance is a function of near-, intermediate-, and long-term company fundamentals, industry outlook, confidence in earnings estimates, valuation (and our valuation methodology), and other factors. Outperform (O) – stock expected to outperform the broader market over the next 12 months; Market Perform (M) – stock expected to perform approximately in line with the broader market over the next 12 months; Underperform (U) – stock expected to underperform the broader market over the next 12 months; not rated (NR) – the stock is not currently rated. The valuation methodologies include (but are not limited to) price-to-earnings multiple (P/E), relative P/E (compared with the relevant market), P/E-to-growth-rate (PEG) ratio, market capitalization/revenue multiple, enterprise value/EBITDA ratio, discounted cash flow, and others. Stock ratings and valuation methodologies should not be used or relied upon as investment advice. Past performance is not necessarily a guide to future performance.

The ratings and valuation methodologies reflect the opinion of the individual analyst and are subject to change at any time.

Our salespeople, traders, and other professionals may provide oral or written market commentary, short-term trade ideas, or trading strategies—to our clients, prospective clients, and our trading desks—that are contrary to opinions expressed in this research report. Certain outstanding research reports may contain discussions or investment opinions relating to securities, financial instruments and/or issuers that are no longer current. Always refer to the most recent report on a company or issuer. Our asset management and trading desks may make investment decisions that are inconsistent with recommendations or views expressed in this report. We will from time to time have long or short positions in, act as principal in, and buy or sell the securities referred to in this report. Our research is disseminated primarily electronically, and in some instances in printed form. Research is simultaneously available to all clients. This research report is for our clients only. No part of this material may be copied or duplicated in any form by any means or redistributed without the prior written consent of William Blair & Company, L.L.C.

This is not in any sense an offer or solicitation for the purchase or sale of a security or financial instrument. The factual statements herein have been take from sources we believe to be reliable, but such statements are made without any representation as to accuracy or completeness or otherwise, except with respect to any disclosures relative to William Blair or its research analysts. Opinions expressed are our own unless otherwise stated and are subject to change without notice. Prices shown are approximate.

This material is distributed in the United Kingdom and the European Economic Area (EEA) by William Blair International, Ltd., authorized and regulated by the Financial Conduct Authority (FCA). William Blair International, Limited is a limited liability company registered in England and Wales with company number 03619027. This material is only directed and issued to persons regarded as Professional investors or equivalent in their home jurisdiction, or persons falling within articles 19 (5), 38, 47, and 49 of the Financial Services and Markets Act of 2000 (Financial Promotion) Order 2005 (all such persons being referred to as “relevant persons”). This document must not be acted on or relied on by persons who are not “relevant persons.”

“William Blair” and “R*Docs” are registered trademarks of William Blair & Company, L.L.C. Copyright 2022, William Blair & Company, L.L.C. All rights reserved.