Denmark's Genmab to acquire ProfoundBio for $1.8 billion

(Reuters) -Danish biotech Genmab has agreed to buy privately owned U.S. cancer drug maker ProfoundBio for $1.8 billion, the two companies said on Wednesday.

The acquisition will give Genmab worldwide rights to three candidates in clinical development, they said.

Genmab shares were down 1.7% at 0955 GMT.

Jyske bank analyst Henrik Hallengreen Laustsen said that while the acquisition is seen as slightly positive for Genmab shares, the price is difficult to assess, and added it might be "a bit high".

"But strategically the acquisition makes sense as it aligns with Genmab's strategy to secure growth beyond Darzalex/Faspro," he said, referring to Genmab's treatment for rare blood cancer.

The all-cash transaction is subject to adjustment for ProfoundBio's closing net debt and transaction expenses.

Genmab said its revenue guidance for 2024 is unchanged at between 18.7 billion and 20.5 billion Danish crowns ($2.70-$2.96 billion), while it expects operating expenses to be at or moderately above the upper end of its previous range of 12.4-13.4 billion crowns.

The deal is expected to close in the first half of the year, the companies said.

($1 = 6.9256 Danish crowns)

(Reporting by Elviira Luoma, additional reporting by Elsa Ohlen; editing by Terje Solsvik and Jason Neely)