Seattle Genetics, Inc.
) has earned a milestone payment of $6 million from
Takeda Pharmaceutical Company Limited
) following the first commercial sales of Adcetris in key
countries (Australia, South Korea and Mexico).
We note that Seattle Genetics entered into a collaboration
agreement with Takeda to develop and commercialize Adcetris in
Dec 2009. As per the deal, Seattle Genetics has rights to
commercialize Adcetris in the U.S. and Canada while Takeda has
commercialization rights in the rest of the world.
Seattle Genetics is entitled to receive royalties at rates
that range from the mid-teens to the mid-twenties based on net
sales of Adcetris within Takeda's licensed territories.
Adcetris is approved for the treatment of relapsed or
refractory Hodgkin lymphoma (HL) and systemic anaplastic large
Seattle Genetics is working on expanding Adcetris' label.
Seattle Genetics completed treatment of all patients in a phase
III study, AETHERA. The study is evaluating HL patients. The
primary efficacy results will be out in the second half of 2014.
Adcetris also obtained orphan drug designation for diffuse large
Seattle Genetics currently carries a Zacks Rank #3 (Hold).
Adcetris is at present approved in 40 countries. Adcetris'
revenues in the year 2013 were $144.7 million. We expect investor
focus to remain on the sales ramp up of the drug and further
Investors looking for better-ranked stocks in the biopharma
sector may consider companies like
). Shire carries a Zacks Rank #2 (Buy) while Alkermes holds a
Zacks Rank #1 (Strong Buy).
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