Seattle Genetics’ earnings results
After the market closed on July 26, Seattle Genetics (SGEN) posted its earnings results for the second fiscal quarter ending on June 30. Seattle Genetics is a biotechnology company that develops monoclonal antibody-based therapies to treat cancer.
Seattle Genetics reported sales of $170.2 million in the second quarter, which represented 57.2% growth YoY (year-over-year). The adjusted diluted EPS was $0.47—compared to the EPS of -$0.39 per share in the second quarter of 2017. Seattle Genetics’ second-quarter results beat analysts’ estimates.
Seattle Genetics stock rose ~3.6% in after-hours trading on July 26. Due to the company’s strong second-quarter results, RBC raised its target price from $73 to $75 on July 26.
Seattle Genetics develops its flagship product Adcetris (Brentuximab vedotin) in collaboration with Takeda Pharmaceuticals. The product is available commercially in more than 65 countries. However, Seattle Genetics only has commercialization rights in the United States and Canada. Takeda markets the drug in all of the other countries. Seattle Genetics is entitled to certain royalty payments.
In the second quarter, Seattle Genetics reported net Adcetris sales of $122.4 million—up ~65% on a YoY basis. Adcetris’ royalty payments in the second quarter were $20.6 million—up ~66% on a YoY basis. In the recent quarter, Adcetris received expanded indications for the treatment of frontline Stage III or Stage IV Hodgkin lymphoma in March and cutaneous T-cell lymphoma subtypes in November 2017. These label expansions helped drive the product’s sales growth in the second quarter.
The collaboration revenues in the second quarter were $27.2 million—compared to $21.5 million in the second quarter of 2017. The revenues included $17 million milestone-based payments due to progress in certain clinical programs using Seattle’s ADC (antibody-drug conjugate) technology and being carried out in collaboration with Genmab, AbbVie (ABBV), and GlaxoSmithKline (GSK).
Next, let us discuss Seattle Genetics’ product pipeline and increased fiscal 2018 outlook.
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