Genmab has posted revenues of $86m for the nine month period ended September 30, 2009. In the same period of 2008, Genmab recognised revenues of $131m.
An operating loss of $105m was recorded compared to an operating loss of 100m for the corresponding period of 2008. Despite the decrease in revenues of $46.66m, the operating loss has only increased by $5.63m compared to the corresponding period in 2008. This is primarily a result of cost savings and control, said the company.
An income of $28m from net financial items for the first nine months of 2009 was incurred, compared to a loss of $4m in the same period of 2008. The net financial items have continued to be positively impacted by the improved market conditions which have resulted in improved fair market valuations of
marketable securities.
A net loss of $79m was incurred by the company, which is a decrease compared to a net loss of $104m for the same period in 2008. The net loss per share was $1.77 for the first nine months of 2009 compared to $2.32 in the first nine months of 2008.
The company has revised its financial guidance for the year 2009, which was announced on November 5, 2009. This was done as the company is seriously thinking about selling its manufacturing facility in Brooklyn Park, Minnesota, US. Genmab expects retention payments and other costs to be approximately $21.12m for the transaction and also estimates a cash impact of $7.64m in 2009 and $13.48m in 2010.
It also estimates that the reorganization charges above will impact the 2009 income statement by approximately $16.09m, including non-cash warrant expenses of approximately $4.42m. The expected value of the facility is $150m less sales related costs of approximately $5m, resulting in a fair value less cost to sell of approximately $145m.
The company also expects 2009 revenue to be approximately $128.72m compared to the previous estimate of $150.85m. The reduction in revenue is primarily due to the delay of a milestone payment to 2010 that was originally expected in 2009 under the Arzerra collaboration with GSK. It anticipates that operating expenses will be approximately $0.26 billion, $20.11m below our previous guidance of $0.28 billion.
The revised operating loss is expected to be approximately $132.75m before the reorganisation charges, as compared to our previous guidance of $130.74m.
Genmab estimates a revised operating loss of approximately $233.31m, as compared to the previous guidance of $130.74m. Genmab is still positive for a cash balance at the end of the year of approximately $0.22 billion.