Seattle Genetics, Inc.
) reported fourth quarter 2012 net loss per share of 9 cents,
narrower than the Zacks Consensus Estimate of a loss of 13 cents
and the year-ago loss of 24 cents per share.
Fourth quarter revenues were $63.9 million, compared with
$48.9 million in the year-ago quarter. Revenues surpassed the
Zacks Consensus Estimate of $56 million. Revenues were mainly
driven by collaboration and license agreement revenues and
Adcetris (brentuximab vedotin) sales.
Full year 2012 net loss per share was 46 cents, narrower than
the Zacks Consensus Estimate of a loss of 55 cents and the
year-ago loss of $1.34 per share. Revenues in 2012 were $210.8
million, compared with $94.8 million in 2011. Revenues for 2012
were below the Zacks Consensus Estimate of $212 million.
The Quarter in Detail
Net revenues for the fourth quarter included Adcetris revenues
(up 6.5% to $35.4 million), collaboration and license agreement
revenues (up 68.4% to $26.4 million) and royalty revenues.
Seattle Genetics is making efforts to expand Adcetris' label.
In Jan 2013, a global phase III study (ECHELON-2) was initiated
on Adcetris. In this study, Adcetris plus chemotherapy will be
evaluated for the front-line treatment of CD30-positive MTCL
including patients with sALCL and other types of peripheral
Earlier this month Health Canada approved Adcetris for the
treatment of relapsed or refractory Hodgkin lymphoma (HL) and
systemic anaplastic large cell lymphoma (sALCL). For similar
indications, Adcetris was approved by the US Food and Drug
Administration (FDA) in Aug 2011 and in the EU in Oct 2012.
Seattle Genetics intends to submit a supplemental biologics
license application (sBLA) in the first half of 2013 for the use
of Adcetris in the retreatment of patients and for extended
duration of use beyond 16 cycles of therapy.
Research and development expenses increased 18.7% year over
year to $47.7 million. Selling, general and administrative
expenses fell 6.4% year over year to $23.4 million.
Seattle Genetics expects Adcetris sales in the range of $130
to $140 million in 2013. 2012 Adcetris revenues were $138.2
Revenues from collaboration and license agreements in 2013 are
expected in the range of $65 million to $75 million. The company
reported 2012 collaboration and license agreements revenues of
Research and development expenses are expected to increase to
$210 million to $230 million in 2013. Selling, general and
administration expenses are also expected to increase to $85
million to $95 million.
Seattle Genetics currently carries a Zacks Rank #4 (Sell).
) look more attractive with a Zacks Rank #1 (Strong Buy).
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