Sarah Bukhari

Sarah Bukhari asked for comments on the size of the opportunity for Rina-S, both within and outside gynecologic oncology, including in lung cancer, given the ongoing Phase 2 trial. She also requested clarification on the terms of the debt offering announced late last year.

Answer

CFO Anthony Pagano reiterated the $2 billion-plus sales guidance for Rina-S, which is underpinned by opportunities in second-line plus platinum-resistant ovarian cancer (PROC), endometrial cancer, and primary peritoneal ovarian cancer (PSOC), as well as frontline endometrial cancer. He noted that Phase 3 trials have already been initiated for the first three indications. Regarding the debt offering, Pagano detailed it as $5.5 billion, with $2.5 billion fixed and $3 billion floating rate debt. He specified that approximately $1.6 billion of the floating debt has been hedged to fixed, resulting in $4.1 billion being fixed. He also mentioned a commitment to reduce gross leverage below 3x by the end of 2027 and an effective interest rate of around 6.6% based on current market conditions.

Sarah Bukhari asked about the size of opportunities for Rina-S, both within and outside gynecologic oncology (including lung cancer), and sought clarification on the terms of the debt offering announced late last year.

Answer

CEO Jan van de Winkel and CFO Anthony Pagano addressed the questions. Pagano reiterated the $2 billion+ sales guidance for Rina-S, underpinned by second-line plus PROC, endometrial, and PSOC, as well as frontline endometrial opportunities, with Phase III trials already initiated for the first three. He expressed excitement about the data in PROC and endometrial cancer. Regarding the debt offering, he detailed it as $5.5 billion, with $2.5 billion fixed and $3 billion floating (of which $1.6 billion is hedged to fixed), resulting in $4.1 billion fixed. The weighted average effective interest rate is around 6.6%, and Genmab is committed to deleveraging below 3x gross leverage by end of 2027.