It was one of last year’s best-performing shares, delivering investors a 155 percent return. But in recent weeks, Genmab A/S -- a Danish biotechnology company -- has taken a bigger beating than most.
Since Tuesday, the stock is down 12 percent, about double the decline in the Copenhagen benchmark index of Denmark’s 20 most-traded stocks. Of the analysts covering Genmab, 12 recommend buying, while one has a hold rating and one is advising clients to sell. The average of analyst price targets is about 20 percent above the current share price, reflecting the biggest return potential since March 22.
“Fundamentally, there has been no negative news on the stock,” said Christian Thatje, a senior dealer at Sydbank A/S. “It’s natural that investors are taking home profits in Genmab after the stock had jumped so sharply.”
Genmab shares have surged more than 4,500 percent over the last 4 1/2 years as investors have bet on the success of the company’s blood cancer drug Darzalex. Danske Bank A/S on Monday repeated its buy recommendation, saying it expects the treatment, which Genmab develops with Johnson & Johnson’s Janssen unit, will become “the gold standard” for multiple myeloma, according to a note.
For now, Genmab has been unable to avoid the broader market rout, with the stock plunging as much as 6 percent in Copenhagen trading on Monday. It was 5.3 percent lower at 1,099 kroner as of 1:42 p.m. local time. The Copenhagen benchmark index fell 2.1 percent while the the Stoxx 600 Health Care Index lost 1.3 percent.
“It makes sense that the stock that has gained the most also becomes the one that’s sold the most when markets turn risk averse and investors are looking to take home some profits,” Sydbank’s Thatje said.