Here’s Why Artisan Partners Reduced its Genmab A/S (GMAB) Position

·3 min read

Artisan Partners, a high value-added investment management firm, published its ‘Artisan Mid Cap Fund’ first quarter 2021 investor letter – a copy of which can be downloaded here. A return of -2.36% was recorded by its Investor Class: ARTMX, -2.32% by its Advisor Class: APDMX, and -2.30% by its Institutional Class: APHMX, in the fourth quarter of 2020, all below the Russell Midcap® Growth Index that delivered a -0.57% return and the Russell Midcap® Index that was up by 8.14% for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Artisan Mid Cap Fund, in its Q1 2021 investor letter, mentioned Genmab A/S (NASDAQ: GMAB), and shared their insights on the company. Genmab A/S is a Copenhagen, Denmark-based biotechnology company that currently has a $23.8 billion market capitalization. Since the beginning of the year, GMAB delivered a -8.46% return, while its 12-month gains are up by 35.25%. As of May 06, 2021, the stock closed at $37.22 per share.

Here is what Artisan Mid Cap Fund has to say about Genmab A/S in its Q1 2021 investor letter:

"We also reduced our position in Genmab. Genmab is a creator and developer of human antibody products for the treatment of life-threatening and debilitating diseases. The company is seeing solid adoption for its multiple myeloma drug, Darzalex FASPROTM, and its earlier stage pipeline contains multiple promising new cancer medicines. However, we trimmed our position based on our concern the stock price was not reflecting the risk of a negative outcome in the ongoing dispute with partner J&J (currently in arbitration) over Darzalex royalty terms. Following the stock’s subsequent selloff, we believe this risk is adequately discounted and are maintaining our current position."

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