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GMAB Stock Soars 21.9% in a Month Following MRUS Acquisition Deal

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Key Takeaways

  • Genmab shares jumped 21.9% in a month on plans to acquire Merus for $8 billion in cash.
  • The acquisition adds petosemtamab, a late-stage oncology candidate, to GMAB's proprietary pipeline.
  • GMAB expects petosemtamab to drive growth, with potential billion-dollar sales contributions by 2029.

Shares of Genmab A/S (GMAB - Free Report) have rallied 21.9% in a month. The stock price rally was observed after the company signed a definitive agreement in late September to acquire Merus N.V. (MRUS - Free Report) for $97 per share in cash, implying a total transaction value of approximately $8 billion.

The tender offer price of $97 per share equates to a 41% premium over Merus’ closing price of $68.89 on Sept. 26, 2025. Subject to the fulfilment of certain customary closing conditions, Genmab anticipates closing the acquisition deal early in the first quarter of 2026.

The MRUS Deal Set to Expand GMAB’s Oncology Pipeline

Genmab’s planned acquisition of Merus marks a strategic step in its shift from a licensing-based model to a fully owned business framework, aimed at broadening and diversifying its revenue base.

A key highlight of the deal is the addition of petosemtamab, Merus’ lead late-stage oncology candidate, which complements Genmab’s expertise in antibody therapy development and commercialization and strengthens its proprietary pipeline. With four homegrown programs now advancing, the transaction positions Genmab for multiple new drug launches by 2027 across several oncology indications, reinforcing its long-term growth prospects and supporting its evolution into a leading biotechnology company.

Year to date, shares of Genmab have soared 60.9% compared with the industry’s 9.8% growth.

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Merus’ petosemtamab is an EGFRxLGR5 bispecific antibody with the potential to be the first and best-in-class therapy for head and neck cancer. The FDA has granted the candidate two Breakthrough Therapy designations for first- and second-line plus head and neck cancer indications. Notably, phase II data for petosemtamab demonstrated an overall response rate and median progression-free survival significantly exceeded current standard-of-care outcomes.

Merus is currently evaluating petosemtamab in two phase III studies for treating first- and second/third-line head and neck cancer, with top-line interim readouts from one or both studies expected in 2026. Leveraging Genmab’s expertise in late-stage development and commercial execution, the company anticipates the potential for an initial launch of petosemtamab in 2027, subject to clinical outcomes and regulatory approval. Merus is also currently evaluating the candidate for metastatic colorectal cancer indications in earlier-stage studies, which represents an even larger market potential.

Genmab also plans to expand and accelerate petosemtamab’s development, including potential use in earlier lines of therapy. Following its anticipated initial approval, GMAB expects the drug to contribute positively to EBITDA, targeting at least $1 billion in annual sales by 2029, with the potential for multi-billion-dollar revenue growth in subsequent years.

Zacks Rank and Other Stocks to Consider

Genmab currently sports a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks in the biotech sector are CorMedix (CRMD - Free Report) and Kiniksa Pharmaceuticals (KNSA - Free Report) , each sporting a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the past 60 days, estimates for CorMedix’s earnings per share have increased from 97 cents to $1.83 for 2025. During the same time, earnings per share estimates for 2026 have increased from $1.65 to $2.48. Year to date, shares of CRMD have surged 40%.

CorMedix’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 34.85%.

In the past 60 days, estimates for Kiniksa Pharmaceuticals’ 2025 earnings per share have increased from 94 cents to 99 cents. However, the earnings per share estimate for 2026 has declined from $1.57 to $1.54 during the same period. KNSA stock has rallied 94.6% year to date.

Kiniksa Pharmaceuticals’ earnings beat estimates in two of the trailing four quarters and missed on the remaining two occasions, delivering an average negative surprise of 330.56%.

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