Company: GNMSF
Filing Date: 2025-02-12
Form Type: 20-F
Source: 0001558370-25-000846
Chunk: 149

Company: GENMAB A/S
Filing Date: 2025-02-12
Form: 20-F
Item: Item 15
Chunk 149
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 internal control relating to the recording of royalty revenue, specifically for assessing and accounting for royalty reduction provisions within the Company’s commercial agreements with collaboration partners. While this material weakness did not cause a material misstatement of the Company’s consolidated financial statements for any period, the underlying control deficiency resulted in immaterial errors in reported royalty revenue, current receivables and retained earnings in periods prior to December 31, 2023 and correcting the cumulative impact of such errors was material to the Company’s consolidated statement of comprehensive income for the year ended December 31, 2023.
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During 2024, management implemented our previously disclosed remediation plans, including (i) strengthening cross functional communication to identify, catalogue, evaluate and assess all royalty reduction provisions in contracts and ongoing application to financial reporting; (ii) enhancing procedures designed to allow the timely review of existing and new contracts, as well as contract amendments, containing royalty provisions and requiring that appropriate business functions provide a specific approval and periodic internal certification process to facilitate appropriate quarterly accounting including, in particular, royalty reduction provisions; and (iii) enhancing documentation, accountability and training related to the reporting of royalties and royalty reductions and related analysis. 
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We completed our testing of the operating effectiveness of our controls, including the effects of the remediation actions described above, and found them to be effective. As a result, we have concluded the material weakness has been remediated as of December 31, 2024.
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Changes in Internal Control over Financial Reporting
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Except as described above in the section titled “—Remediation of Previously Reported Material Weakness”, there were no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) during the period covered by this Annual Report on Form 20-F that have materially affected, or is reasonably likely to materially affect, internal control over financial reporting.

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