Genmab announced on Wednesday that it had reached a definitive agreement to acquire the US biotechnology company ProfoundBio for $1.8 billion, an amount to be financed entirely in cash.

The Danish laboratory explains that the transaction will enable it to strengthen its portfolio of projects by getting its hands on ProfoundBio's conjugated antibodies for the treatment of cancer.

ProfoundBio's programs include three molecules, including Rina-S, an immuno-conjugate in Phase 2 clinical trials for the treatment of ovarian cancer and other solid tumors with an FR? expression profile.

Earlier this year, the U.S. FDA granted fast-track approval to Rina-S for the treatment of high-grade serous platinum-resistant endometrioid ovarian cancer with FR? expression.

Genmab explains that combining ProfoundBio's proprietary platforms with its own antibodies could lead to the discovery of new treatments that could transform cancer management.

'Given its young age, ProfoundBio is making losses and will be dilutive in the short term', RBC analysts point out, which will weigh on Genmab's accounts.

In a press release, the Copenhagen-based group says it expects its operating expenses to meet or exceed its 2024 annual target of DKK 12.4-13.4 billion.

Its annual sales target remains unchanged at between DKK 18.7 and 20.5 billion.

The acquisition, which should be completed by the end of June, was not warmly welcomed on the Copenhagen Stock Exchange, where Genmab shares were down 2% at lunchtime on Wednesday.

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