Seattle Genetics, Inc.
) reported third quarter 2013 net loss per share of 19 cents,
narrower than the Zacks Consensus Estimate of a loss of 22 cents
but wider than the year-ago loss of 12 cents per share.
Third quarter revenues were $71 million, compared with $49.8
million in the year-ago quarter. Revenues surpassed the Zacks
Consensus Estimate of $58 million.
Net revenues for the third quarter included Adcetris revenues
(up 8.4% to $36.5 million), collaboration and license agreement
revenues (up 101.9% to $29.2 million) and royalty revenues (up
209.2% to $5.3 million).
Research and development expenses increased 63.9% year over
year to $67.8 million due to Adcetris development activities and
higher investment in other antibody-drug conjugate (ADC)
programs. Selling, general and administrative (SG&A) expenses
rose 13.8% year over year to $21.5 million.
Adcetris is approved for the treatment of relapsed or
refractory Hodgkin lymphoma (HL) and systemic anaplastic large
cell lymphoma (sALCL).
Seattle Genetics is working on expanding Adcetris' label. In
May 2013, Seattle Genetics submitted a supplemental biologics
license application (sBLA) for the use of Adcetris in the
retreatment of patients and for extended duration of use beyond
16 cycles of therapy. The U.S. Food and Drug Administration (FDA)
did not approve Adcetris in this retreatment setting. The FDA has
asked to remove the limitation of the 16-cycle timeframe from the
Seattle Genetics completed treatment of all patients in a
phase III study, AETHERA. The study is evaluating Hodgkin
The company commenced a phase II study on Adcetris in
combination with standard therapy (R-CHOP) in newly diagnosed
diffuse large B-cell lymphoma patients.
For Adcetris, the company gained orphan drug designation for
angioimmunoblastic T-cell lymphoma (AITL), an aggressive type of
mature T-cell lymphoma (MTCL) in the U.S.
Meanwhile, Seattle Genetics discontinued the development of
SGN-75 (phase I) for renal cell carcinoma.
Seattle Genetics increased its 2013 collaboration and license
agreement revenue guidance from $85-$95 million to $95-$100
million. The company also increased its net Adcetris sales
forecast from $130-$140 million to $140-$145 million.
Seattle Genetics currently carries a Zacks Rank #3 (Hold). We
expect investor focus to remain on the sales ramp up of the drug.
Adcetris' label expansion, pipeline advancement and ADC
collaborations will drive future growth. Right now, companies
AMAG Pharmaceuticals, Inc.
) look more attractive with a Zacks Rank #1 (Strong Buy).
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