=Seattle Genetics (SGEN) reported earnings on Thur 26 Oct 2017 (a/h)

Seattle Genetics beats by $0.74, beats on revs

• Reports Q3 (Sep) earnings of $0.34 per share, $0.74 better than the Capital IQ Consensus of ($0.40); revenues rose 27.3% year/year to $135.29 mln vs the $112.76 mln Capital IQ Consensus.
  • Due to the gain on the Immunomedics warrant, Seattle Genetics reported net income in the third quarter of 2017 of $50.0 million, or $0.34 per fully diluted share, compared to a net loss of $31.8 million, or $0.23 per share, for the third quarter of 2016.
  • As part of a previously terminated license transaction with Immunomedics, Seattle Genetics holds 3.0 million shares of Immunomedics common stock and a warrant to purchase an additional 8.7 million shares. In September 2017, Immunomedics' resale registration statement covering the shares issuable upon exercise of the warrant was declared effective by the SEC. As a result, the warrant is accounted for as a derivative security and marked-to-market. This led to a gain of $78.7 million reflected in investment and other income, net, recorded in the quarter ended September 30, 2017.
• 2017 Outlook
  • Revenues from collaboration and license agreements $90 million -$100 million (prior: $75-90 million)
  • Royalty revenues $60 million to $65 million (prior: $50-55 million)
  • Research and development expenses (prior: $460-480 million)
• "We have recently delivered on several important goals that continue to strengthen the ADCETRIS brand and advance our portfolio of pipeline programs. The FDA granted Breakthrough Therapy Designation to ADCETRIS in combination with chemotherapy in frontline advanced classical Hodgkin lymphoma based on data from the phase 3 ECHELON-1 clinical trial, and we are on track to submit a supplemental Biologics License Application (BLA) for this indication soon. And, the supplemental BLA for ADCETRIS in cutaneous T-cell lymphoma was filed by the FDA with priority review and a PDUFA date of December 16, 2017," said Clay Siegall, Ph.D., President and Chief Executive Officer of Seattle Genetics. "We have also made significant progress with our pipeline, which now includes two ADCs for which we are pursuing rapid development pathways based on positive FDA feedback. We and our partner Astellas have initiated a pivotal phase 2 trial of enfortumab vedotin in metastatic urothelial cancer, and we and our partner Genmab plan to advance tisotumab vedotin into a pivotal phase 2 trial for recurrent or metastatic cervical cancer in the first half of 2018. We anticipate several additional milestones before the end of 2017, including a strong presence at the American Society of Hematology annual meeting in December highlighted by a presentation of our full ECHELON-1 data in frontline Hodgkin lymphoma."