Seagen Inc. reported a loss of 74 cents per share in the first quarter of 2022, narrower than the Zacks Consensus Estimate of a loss of 98 cents. The company had reported a loss of 67 cents per share in the year-ago quarter.
Total revenues in the first quarter of 2022 were $426.5 million, increasing 28.4% year over year. The top line also beat the Zacks Consensus Estimate of $409 million. Net product revenues in the first quarter were $383.1 million, up 27% year over year, driven by the strong uptake of Seagen’s portfolio of marketed cancer drugs.
Shares of Seagen have decreased 15.7% in the year so far compared with the industry’s decline of 20.3%.
Quarter in Detail
Seagen’s top line mainly comprises of product revenues, collaboration and license agreement revenues, and royalties. The company currently markets four drugs — Adcetris, Padcev, Tukysa and the newly approved Tivdak.
Adcetris generated net sales of $181 million in the United States and Canada, up 11% year over year. The drug, which is the majority contributor of SGEN’s revenues, is being evaluated in several label-expansion studies. A successful development and potential approval should boost its sales in future.
Padcev sales in the first quarter totaled $100.2 million, up 8.1% sequentially. Sale of the drug rose 44% on a year-over-year basis.
Tukysa’s first-quarter net sales were $90.5 million, down 3.8% sequentially. Tukysa sales increased 29% on a year-over-year basis.
The newly launched Tivdak generated sales worth $11.4 million in the first quarter of 2022, reflecting a sequential increase of 86.9%.
Collaboration and license agreement revenues were $15.2 million, reflecting a significant increase year over year. The significant increase was primarily due to an upfront license payment received from French pharma giant, Sanofi (SNY - Free Report) , from the recently formed partnership.
Royalty revenues of $28.2 million rose from the year-ago quarter’s $27.2 million. Seagen records royalty revenues on the sales of Adcetris from Takeda Pharmaceutical in ex-U.S. markets as well as from its collaboration with GlaxoSmithKline for Blenrep, and to a lesser extent, from Polivy’s sales under its collaboration with Roche (RHHBY - Free Report) .
Polivy is an antibody-drug conjugate (“ADC”) that uses Seagen’s technology and is commercialized by Roche.
In March 2022, Roche announced that the European Medicines Agency’s Committee for Medicinal Products for Human Use had recommended approval of Polivy in combination with chemotherapy for addressing previously untreated diffuse large B-cell lymphoma.
Research and development (R&D) expenses of $297.7 million increased 29.2% year over year, primarily owing to higher investment in clinical development.
Selling, general and administrative (SG&A) expenses increased 9% year over year to $174.2 million, mainly on account of higher costs related to the recent launch of Tukysa in Europe as well as the commercial launch of Tivdak in the United States.
2022 Guidance
Seagen has maintained the financial guidance it had provided earlier this year.
Total net product revenues are expected in the range of $1.48-$1.54 billion.
Seagen expects Adcetris’ full-year 2022 net sales in the band of $730-$755 million. Padcev’s full-year net sales are expected to be $435-$455 million while Tukysa’s sales are anticipated in the band of $315-$335 million.
The company expects collaboration and license revenues in the band of $25-$30 million while royalty revenues are anticipated within $160-$170 million.
Recent Updates
Earlier this month, the European Commission approved Padcev as a monotherapy for the treatment of locally advanced/metastatic urothelial cancer in adult patients having previously received a platinum-containing chemotherapy and a PD-1/L1 inhibitor.
During the same time, PADCEV was also approved in Great Britain for the same indication.
Seagen is also investigating Padcev in combination with Merck’s (MRK - Free Report) PD-L1 inhibitor, Keytruda, in several mid-stage studies in first- and second-line metastatic urothelial cancer, as well as in muscle-invasive bladder cancer.
Merck’s biggest revenue generator, Keytruda, is approved for treating several types of cancer indications. MRK is also studying the drug for yet more types of cancer indications.
In March 2022, Seagen entered into an exclusive collaboration agreement with Sanofi to design, develop and commercialize novel ADCs for up to three cancer targets.
The partnership is looking to combine Seagen’s proprietary ADC technology with Sanofi’s proprietary monoclonal antibody (mAb) technology to introduce promising anti-cancer drugs. Both Seagen and Sanofi will co-fund global development activities for the program.
Zacks Rank
Seagen currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Seagen Inc. reported a loss of 74 cents per share in the first quarter of 2022, narrower than the Zacks Consensus Estimate of a loss of 98 cents. The company had reported a loss of 67 cents per share in the year-ago quarter.
Total revenues in the first quarter of 2022 were $426.5 million, increasing 28.4% year over year. The top line also beat the Zacks Consensus Estimate of $409 million. Net product revenues in the first quarter were $383.1 million, up 27% year over year, driven by the strong uptake of Seagen’s portfolio of marketed cancer drugs.
Shares of Seagen have decreased 15.7% in the year so far compared with the industry’s decline of 20.3%.
Quarter in Detail
Seagen’s top line mainly comprises of product revenues, collaboration and license agreement revenues, and royalties. The company currently markets four drugs — Adcetris, Padcev, Tukysa and the newly approved Tivdak.
Adcetris generated net sales of $181 million in the United States and Canada, up 11% year over year. The drug, which is the majority contributor of SGEN’s revenues, is being evaluated in several label-expansion studies. A successful development and potential approval should boost its sales in future.
Padcev sales in the first quarter totaled $100.2 million, up 8.1% sequentially. Sale of the drug rose 44% on a year-over-year basis.
Tukysa’s first-quarter net sales were $90.5 million, down 3.8% sequentially. Tukysa sales increased 29% on a year-over-year basis.
The newly launched Tivdak generated sales worth $11.4 million in the first quarter of 2022, reflecting a sequential increase of 86.9%.
Collaboration and license agreement revenues were $15.2 million, reflecting a significant increase year over year. The significant increase was primarily due to an upfront license payment received from French pharma giant, Sanofi (SNY - Free Report) , from the recently formed partnership.
Royalty revenues of $28.2 million rose from the year-ago quarter’s $27.2 million. Seagen records royalty revenues on the sales of Adcetris from Takeda Pharmaceutical in ex-U.S. markets as well as from its collaboration with GlaxoSmithKline for Blenrep, and to a lesser extent, from Polivy’s sales under its collaboration with Roche (RHHBY - Free Report) .
Polivy is an antibody-drug conjugate (“ADC”) that uses Seagen’s technology and is commercialized by Roche.
In March 2022, Roche announced that the European Medicines Agency’s Committee for Medicinal Products for Human Use had recommended approval of Polivy in combination with chemotherapy for addressing previously untreated diffuse large B-cell lymphoma.
Research and development (R&D) expenses of $297.7 million increased 29.2% year over year, primarily owing to higher investment in clinical development.
Selling, general and administrative (SG&A) expenses increased 9% year over year to $174.2 million, mainly on account of higher costs related to the recent launch of Tukysa in Europe as well as the commercial launch of Tivdak in the United States.
2022 Guidance
Seagen has maintained the financial guidance it had provided earlier this year.
Total net product revenues are expected in the range of $1.48-$1.54 billion.
Seagen expects Adcetris’ full-year 2022 net sales in the band of $730-$755 million. Padcev’s full-year net sales are expected to be $435-$455 million while Tukysa’s sales are anticipated in the band of $315-$335 million.
The company expects collaboration and license revenues in the band of $25-$30 million while royalty revenues are anticipated within $160-$170 million.
Recent Updates
Earlier this month, the European Commission approved Padcev as a monotherapy for the treatment of locally advanced/metastatic urothelial cancer in adult patients having previously received a platinum-containing chemotherapy and a PD-1/L1 inhibitor.
During the same time, PADCEV was also approved in Great Britain for the same indication.
Seagen is also investigating Padcev in combination with Merck’s (MRK - Free Report) PD-L1 inhibitor, Keytruda, in several mid-stage studies in first- and second-line metastatic urothelial cancer, as well as in muscle-invasive bladder cancer.
Merck’s biggest revenue generator, Keytruda, is approved for treating several types of cancer indications. MRK is also studying the drug for yet more types of cancer indications.
In March 2022, Seagen entered into an exclusive collaboration agreement with Sanofi to design, develop and commercialize novel ADCs for up to three cancer targets.
The partnership is looking to combine Seagen’s proprietary ADC technology with Sanofi’s proprietary monoclonal antibody (mAb) technology to introduce promising anti-cancer drugs. Both Seagen and Sanofi will co-fund global development activities for the program.
Zacks Rank
Seagen currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.2% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
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