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What’s Driving Seattle Genetics Stock in 2018?

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Seattle Genetics

Seattle Genetics’ (SGEN) antibody-drug conjugate technology makes use of monoclonal antibodies’ targeting ability to deliver cell-killing agents to cancer cells. Adcetris, Seattle Genetics’ product on the market, is used to treat several types of lymphoma. The company also has a product pipeline targeted for solid tumors and blood-related cancers.

In this series, we’ll explore Seattle Genetics’ financials, research pipeline, Adcetris’ performance, analysts’ recommendations for the stock, and the company’s valuation metrics.

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Seattle Genetics generated total revenues of $170.17 million in the second quarter—compared to $108.22 million in the same period in 2017. The company generates revenues from product sales, royalties, and collaboration and licensing agreements. Seattle Genetics’ product sales rose from $74.34 million in the second quarter of 2017 to $122.44 million in the second quarter of 2018. Increased product sales were driven by Adcetris’ higher sales volume and the price increase driven by label expansions.

Seattle Genetics’ revenues from collaboration and licensing agreements increased from $21.5 million in the second quarter of 2017 to $27.18 million in the second quarter of 2018. The company’s royalty revenues also increased from $12.37 million in the second quarter of 2017 to $20.55 million in the second quarter of 2018.

For 2018 and 2019, Seattle Genetics is expected to generate revenues of $659.86 million and $905.90 million, respectively—compared to revenues of $482.25 million in 2017.

Next, we’ll discuss Seattle Genetics’ operational performance.

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