Genmab to Focused on Key Development Programs
Projects 2003 Cash Burn of DKK 345 Million

Copenhagen, Denmark; November 13, 2002 – Genmab A/S (CSE: GEN and FSE: GE9D) announced today a strategy update including financial guidance for 2003. The company’s strategy update meeting will be webcast live today at 1530 CET/0930 Eastern on the Genmab website www.genmab.com

Strategy

As a strategy to build its business, Genmab plans to access the value of its human antibody portfolio through a combination of in-house clinical development as well as outlicensing of both early and late stage programs. In 2003, Genmab plans to advance six key development programs through clinical trials. The company will also identify some programs for strategic outlicensing. Genmab will continue to balance risk by pursuing numerous opportunities to succeed, both by developing its own products and through existing and potential partnerships. As part of this strategy, the company will continue to focus on cost controls and work to maximize the value of its existing products, technology and development organization.

Financial Guidance

For 2003, Genmab’s board has approved an operating budget of DKK 438 million (approximately $58 million US) compared to an operating budget in 2002 of DKK 500 million (approximately $66 million US) and projects a cash burn of DKK 345 million (approximately $45 million US) for 2003. Based on this budget and the projected 2002 year end cash figure of DKK 1.35-1.38 billion (approximately $178-182 million US), the company expects to have approximately DKK 1.020 billion (approximately $134 million US) at the end of 2003. Research and Development will make up 83% of the costs compared to 80% in 2002, with General and Administration accounting for around 17% of the costs compared to 20% in 2002. 

Focus Programs 2003

The following six programs will be the focus of in-house product development activities during 2003 and Genmab projects reaching the development stage indicated.

HuMax-IL15

Genmab has filed an Investigational New Drug application (IND) in Denmark in order to start a Phase II trial using HuMax-IL15 for the treatment of RA. The study will be a multi dose, double-blind, placebo-controlled trial in patients with active RA who have previously failed one or more disease modifying anti-rheumatic drugs (DMARDs). Patients will receive doses of 40 mg, 80 mg, 160 mg or 280 mg of HuMax-IL15 or placebo once every two weeks for 12 weeks and will be followed for three months after the final dose. The objective of the study is to demonstrate efficacy as measured by the industry recognized ACR score as well as safety.

Manufacturing

The lack of contract manufacturing capacity in the industry has eased recently and Genmab has obtained access to manufacturing resources through relationships with existing and new manufacturing partners. Planning and building a facility would require a significant commitment to fixed costs and, as the company wishes to maintain flexibility for future budget planning, any plans to build a manufacturing facility in Hillerød, north of Copenhagen are postponed indefinitely.