Sept 26th Seattle Genetics (NASDAQ:SGEN) will hold a conference call and webcast on Monday, September 29, 2014 at 5:30 am PT to discuss top-line results from the AETHERA Phase 3 clinical trial evaluating the safety and efficacy of Adcetris (brentuximab vedotin) in patients with Hodgkin lymphoma at risk of relapse following autologous stem cell transplant.
I had a starter position and just added to it this week. They have a compellingly different approach to oncology per a friend who does cancer research at Amgen. Still high risk but they have a compelling risk/reward profile to me so I'm a long term investor in company. Still sell covered calls against position for a little downside protection and if it gets called away I will repurchase based upon technical.
Baker Bros. Advisors, the fund managed by Julian and Felix Baker disclosed changes in two of its activist positions last Thursday. The firm continued to boost its exposure to Seattle Genetics, Inc. (NASDAQ:SGEN) by approximately 3.6%, to 25.2 million shares of common stock, and trimmed its stake in Cerus Corporation (NASDAQ:CERS) by 1.8%, to 11.7 million shares of common stock. These stakes represent 20.3% and 15.0% of the companies’ shares outstanding, respectively.
Morningstar Analyst Report: Fair Value estimate $41
Continued expansion of Adcetris' indications and pipeline progress underpin a positive moat trend. by Stefan Quenneville
Seattle Genetics Reports 4Q as Expected; Maintaining Fair Value Estimate
Analyst Note 02/11/2015 We are maintaining our $41 fair value estimate and our no moat, positive trend rating as Seattle Genetics reported fourth-quarter results that were largely consistent with our expectations of gradually improving Adcetris sales growth in the United States and a net loss as the company continues to invest in its ample pipeline opportunities. With multiple late-stage trials for Adcetris ongoing and more than 15 collaborations with substantial milestone and royalty potential in the works, we believe Seattle Genetics' long-term outlook remains attractive.
Total revenue was $74.3 million during the quarter, up from $67.4 million a year ago. This included Adcetris sales of $46.5 million (versus $48.2 million last quarter and $38.5 million in the fourth quarter of 2013) and royalty revenue of $11.9 million from sales abroad by partner Takeda/Millennium. Total expenses for the quarter were $102.1 million, compared with $83.1 million a year ago, due to higher selling, general, and administrative and research and development costs. Overall, this resulted in a quarterly net loss of $26.7 million, or $0.22 per share, compared with a net loss of $15.7 million, or $0.13 per share, last year. The company finished the quarter with $313.4 million in cash.
The company provided 2015 guidance for U.S. Adcetris sales of $200 million-$210 million and collaboration revenue of $60 million-$70 million, which is consistent with our expectations.
Key upcoming pipeline milestones include filing for a supplemental biologics license application based on the positive AETHERA trial of Adcetris in patients with residual Hodgkin lymphoma following autologous stem cell transplants. The company also plans to announce by midyear the outcome of negotiations with regulatory agencies to modify its Adcetris Phase III trials ECHELON-1 (in front-line Hodgkin lymphoma) and ECHELON-2 (in front-line CD30-positive mature T-cell lymphomas) to potentially shorten their timelines.
Investment Thesis 10/31/2014 We think Seattle Genetics' next-generation cancer therapy, Adcetris, and its robust pipeline, which are based on its proprietary antibody-drug conjugate technology platform, make it stand out among its emerging biotech peers.
The firm's leading ADC technology has allowed it to develop an internal pipeline of innovative cancer treatments, as well become the partner of choice for leading oncology players. The technology improves the potency and safety of cancer-targeting monoclonal antibodies by linking them to potent cell-killing drugs (chemotherapies), thereby enhancing antitumor activity while also reducing the potential toxicity. This approach has yielded remarkable results. Notably, the firm's anti-CD30 ADC, Adcetris, had a 75% response rate in patients with relapsed/refractory Hodgkin's lymphoma, while an earlier non-ADC version of the antibody failed to demonstrate any objective responses. In addition, the firm's ADCs are synthetically produced, which boosts manufacturing scalability and reduces production costs.
Adcetris was approved in 2011 in relapsed/refractory HL. Seattle Genetics markets the drug in North America and partnered the marketing rights abroad to Millennium in exchange for licensing and milestone payments as well as double-digit royalties on sales. Millennium also shares in the development costs for the drug, and we think Seattle Genetics' broad clinical program for the candidate, including ongoing trials in earlier lines of therapy and other CD30-positive malignancies, eventually could bring in more than $1 billion in annual sales.
Given the broad applicability of its ADC technology, Seattle Genetics has partnered with some of the world's leading drugmakers, including Pfizer, Roche, Bayer, and GlaxoSmithKline. In addition to providing the firm with much-needed cash, these collaborations could net the company several billion dollars in milestone and royalty payments in the future. Additionally, Seattle Genetics' early-stage pipeline contains several ADCs that seek to address expansive markets such as prostate and kidney cancer, which we think positions the firm for solid long-term growth.
Economic Moat 10/31/2014 Although Adcetris is now the first approved drug in a new class of next-generation cancer fighters and Seattle Genetics is a leader in antibody-drug conjugate technology, the firm has yet to dig itself a moat, in our opinion. Seattle Genetics' lead compound has been shown to dramatically increase response rates in patients with difficult-to-treat cancer indications, and the drug's strong efficacy has led the firm to set its price more than $100,000 per patient for its product. Nevertheless, a high degree of uncertainty still surrounds Adcetris' regulatory and commercial success. For instance, we think Seattle Genetics will need to expand Adcetris' label beyond the relapsed/refractory patient populations if it hopes to see blockbuster sales from the drug.
From a technology perspective, Seattle Genetics is a clear leader with its proprietary ADC platform, having signed development deals with Pfizer, Roche, Bayer, and GlaxoSmithKline, resulting in more than 18 partnered pipeline products currently in development. However, other biotechs such as Celldex Therapeutics, Immunogen, and ADC Therapeutics have also developed competing ADC technologies and partnered them with leading players. Notably, Immunogen's technology was used by Roche to develop Kadcyla, the next-generation version of its blockbuster HER-2, targeting breast cancer therapy Herceptin. Additionally, most large pharmas have internal ADC research programs or have acquired the know-how, such as with AstraZeneca's recent purchase of Spirogen. Given this intense competitive dynamic surrounding various ADC technologies, we believe it is premature to grant the firm a moat based on the approval of one product. We would consider awarding Seattle Genetics a moat should it be able to sustain and build upon its current technological leadership by gaining approval for additional ADCs that have healthy long-run prospects and by making progress toward building a diversified portfolio of marketed drugs.
Valuation 02/11/2015 Our fair value estimate of $41 per share is driven primarily by Adcetris, which we think will ultimately see peak global sales of more than $1.5 billion for the drug thanks to the unmet need in these patient populations and the potential for label expansion into earlier-line settings. We assign Seattle Genetics' remaining monoclonal antibodies a 20% probability of approval based on their progress in early-stage trials; we think these candidates could hit the market starting in 2018. Seattle Genetics will need to significantly increase its selling and administrative spending to support Adcetris' expansion into new indications, and we think it will take the firm until 2017 to become profitable. However, we think operating margins could rise into the high 40s by the end of our 10-year explicit forecast period as the firm adds new indications for Adcetris and new drugs to its sales lineup.
Risk 10/31/2014 The bulk of Seattle Genetics' near-term value is tied to the success of Adcetris, and any product launch stumbles would adversely affect the firm's share price. Seattle Genetics' decision to affix a lofty price tag to Adcetris has caused some concern in the investment community following the recent failure of Dendreon's pricey prostate cancer drug Provenge to live up to sales expectations. Although the company's broad pipeline helps diversify its product concentration risk, none of its compounds are guaranteed marketing approval (as evidenced by the efficacy troubles encountered by lintuzumab and dacetuzumab). Furthermore, Adcetris is the first drug to be approved that was developed using Seattle Genetics' ADC technology, making the firm's flagship technology still relatively unproved.
Management 10/31/2014 We award Seattle Genetics a Standard Stewardship Rating. Clay Siegall is chief executive officer, and we think the Ph.D. geneticist has done a good job managing the firm's growing pipeline and collaboration portfolio since he cofounded Seattle Genetics in 1998. Although we disapprove of the fact that Siegall also holds the role of chairman of the board, we think the firm's practice of appointing a lead independent director helps encourage management oversight. However, the firm's executives, directors, and major stakeholders control more than 50% of Seattle Genetics' voting power, which could limit outside shareholders' ability to influence operations.
Given the disappointing launches experienced by some of its single-drug biotech peers, we approve of Seattle Genetics' strategy to amass a broad development-stage pipeline, including several experimental drug candidates of its own as well as a dozen collaborations for its antibody-drug conjugate technology with various biotechnology and pharmaceutical partners. Although Seattle Genetics' decision to price Adcetris north of $100,000 caused some concern in the investment community (given the recent failure of Dendreon's pricey prostate cancer drug to live up to sales expectations), we think the critical need for new HL and sALCL therapies and Adcetris' robust clinical activity in trials will still allow it to win share among prescribers and patients.
SGEN had no problem with 200 day and is now up 10% in past couple days. Pushing upper bollinger band. Option premium indicates cautious outlook for move beyond upcoming resistance at $40. Apr $40 is only 5.3% out of the money and the annualized yield on last call sale at $1.00 is only 26%
Insider Buying: Seattle Genetics Director Buys $9,556,351.22 in Stock (SGEN) Posted by Zach Kirkland on Mar 13th, 2015
Seattle Genetics (NASDAQ:SGEN) Director Felix Baker purchased 275,717 shares of the company’s stock in a transaction that occurred on Monday, March 9th. The shares were purchased at an average cost of $34.66 per share, for a total transaction of $9,556,351.22. Following the transaction, the director now directly owns 107,504 shares of the company’s stock, valued at approximately $3,726,088.64. The transaction was disclosed in a filing with the Securities & Exchange Commission
Felix Baker also recently made the following trade(s): On Tuesday, March 10th, Felix Baker bought 285,036 shares of Seattle Genetics stock. The shares were purchased at an average price of $34.66 per share, for a total transaction of $9,879,347.76. On Wednesday, March 4th, Felix Baker purchased 448,841 shares of Seattle Genetics stock. The stock was purchased at an average price of $34.84 per share, for a total transaction of $15,637,620.44. On Wednesday, February 25th, Felix Baker purchased 281,115 shares of Seattle Genetics stock. The stock was purchased at an average price of $33.92 per share, for a total transaction of $9,535,420.80.
Seattle Genetics (NASDAQ:SGEN) opened at 38.11 on Friday. Seattle Genetics has a 52 week low of $30.05 and a 52 week high of $55.46. The stock’s 50-day moving average is $33. and its 200-day moving average is $35.. The company’s market cap is $4.74 billion.
Seattle Genetics (NASDAQ:SGEN) last issued its quarterly earnings data on Tuesday, February 10th. The company reported ($0.22) EPS for the quarter, beating the Thomson Reuters consensus estimate of ($0.25) by $0.03. The company had revenue of $74.30 million for the quarter, compared to the consensus estimate of $68.34 million. During the same quarter in the prior year, the company posted ($0.13) earnings per share. The company’s quarterly revenue was up 10.2% on a year-over-year basis. On average, analysts predict that Seattle Genetics will post $-0.71 earnings per share for the current fiscal year.
SGEN has been the subject of a number of recent research reports. Analysts at Bank of America reiterated a “sell” rating on shares of Seattle Genetics in a research note on Wednesday, February 11th. Analysts at JPMorgan Chase & Co. lowered their price target on shares of Seattle Genetics from $43.00 to $40.00 and set a “neutral” rating on the stock in a research note on Wednesday, February 11th. Analysts at Cantor Fitzgerald set a $35.00 price target on shares of Seattle Genetics and gave the company a “hold” rating in a research note on Wednesday, February 11th. Finally, analysts at Jefferies Group set a $53.00 price target on shares of Seattle Genetics and gave the company a “buy” rating in a research note on Monday, February 9th. One research analyst has rated the stock with a sell rating, five have given a hold rating and one has given a buy rating to the company’s stock. The company has an average rating of “Hold” and a consensus target price of $39.00.
Seattle Genetics, Inc is biotechnology company focused on the development and commercialization of monoclonal antibody-based therapies for cancer. Its product candidate, ADCETRIS or brentuximab vedotin is approved by United States Food and Drug Administration (NASDAQ:SGEN) in two indications: the treatment of patients with Hodgkin lymphoma after failure of autologous stem cell transplant (ASCT), or ASCT, or after failure of at least two prior multi-agent chemotherapy regimens in patients who are not ASCT candidates, and the treatment of patients with systemic anaplastic large cell lymphoma (s ALCL), after failure of at least one prior multi-agent chemotherapy regimen.
Under: Been on the sidelines for a bit holding (building) cash. Now that "BIGLEY" has rolled out the tax plan its time to jump in.
Dec 21, 2017 19:06:02 GMT -6
martyc: Looks like you are buying Msft again!
Dec 15, 2017 11:23:29 GMT -6
martyc: The news that Trump called Rupert to congratulate him sure seems to indicate that this is heading to approval
Dec 15, 2017 11:22:23 GMT -6
Under: DIS finally getting some traction.?
Dec 14, 2017 17:08:45 GMT -6
martyc: I took an entry level position in DIS. Will add eventually to overweight when it becomes clearer that the deal will go thru. Can't believe how well positioned they will be. 60% Hulu. 20% of content watched on NFLX they can pull. More in thread
Dec 14, 2017 11:05:16 GMT -6
Under: Great posts on $DIS
Dec 13, 2017 17:50:49 GMT -6
Under: $ROKU Citron on a war path.
Nov 28, 2017 15:11:20 GMT -6
Under: $HAS takeover bid for $MAT?
Nov 10, 2017 16:16:07 GMT -6
martyc: Not looking like the market will provide any discounted opp for SGMO. Call was just too professional and all signs indicate they are on a great path for commercialization. Happy with core but wish I had some trading shs
Nov 10, 2017 9:04:05 GMT -6
martyc: For anyone looking to find an entry point into SGMO, I'm almost hoping is sells off in next few days so I can add more. They are really clicking but the fact they haven't signed new deals might cause some to exit. Watching as I have room for trading shs
Nov 9, 2017 18:28:09 GMT -6
martyc: Been an interesting ride so far. I figured the Bears would be about this good but hoped the O wouldn't look so lame. Another building yr but still possible to get to 8-8 IMO
Nov 9, 2017 18:26:08 GMT -6
Under: whats up with your Bears this year Marty?
Nov 9, 2017 17:35:25 GMT -6
martyc: Hope you were long ROKU. I wanted to see Q first so missed out
Nov 9, 2017 7:08:53 GMT -6