A month has gone by since the last earnings report for Seattle Genetics . Shares have added about 12.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Seattle Genetics due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Seagen Q4 Earnings Miss Estimates, Revenues Top Mark
Seagen incurred a loss of 95 cents per share in the fourth quarter of 2021, wider than the Zacks Consensus Estimate of a loss of 79 cents. The company had reported earnings of 90 cents per share in the year-ago quarter. Net loss during this time was impacted by an upfront payment of $200 million owed to RemeGen.
Total revenues in the fourth quarter of 2021 were $430 million, declining 28.5% year over year. The top line, however, beat the Zacks Consensus Estimate of $403 million. Net product revenues in the fourth quarter were $369.2 million, up 26% year over year, driven by the strong uptake of Seagen’s marketed cancer drugs, Tukysa and Padcev.
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, namely, Adcetris, Padcev, Tukysa and the newly approved Tivdak.
Adcetris generated net sales of $176.3 million in the United States and Canada, up 8% year over year. The drug, sales of which reflected modest growth, is being evaluated in several label-expansion studies.
Padcev sales in the fourth quarter totaled $92.7 million, up 15.3% sequentially. Sale of the drug rose 34% on a year-over-year basis.
Tukysa’s fourth-quarter net sales were $94.1 million, up 8.7% sequentially. Tukysa sales increased 53% on a year-over-year basis.
The newly launched Tivdak generated sales worth $6.1 million in the first full quarter since its approval in September 2021.The drug is seeing a slow launch uptake.
Collaboration and license agreement revenues were $14.7 million, reflecting a significant decrease year over year. Royalty revenues of $46 million rose from the year-ago quarter’s $39.2 million. Seagen records royalty revenues on the sales of Adcetris from Takeda 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.
Research and development (R&D) expenses of $304.3 million increased 40.7% year over year, primarily owing to the upfront payment due under the RemeGen collaboration agreement for disitamabvedotin.
Selling, general and administrative (SG&A) expenses shot up 33.1% year over year to $210.9 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
Total revenues are expected in the range of $1.48-$1.54 billion.
Seagen expects Adcetris’ full-year 2022 net sales in the range of $730-$755 million. Padcev’s full-year net sales are expected in the range of $435-$455 million while Tukysa’s sales are anticipated in the band of $315-$335 million.
Seagen did not provide any sales guidance for its newest drug, Tivdak.
The company expects collaboration and license revenues in the band of $25-$30 million while royalty revenues are anticipated within $160-$170 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -113.22% due to these changes.
VGM Scores
Currently, Seattle Genetics has a poor Growth Score of F, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Seattle Genetics has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
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Why Is Seattle Genetics (SGEN) Up 12.7% Since Last Earnings Report?
A month has gone by since the last earnings report for Seattle Genetics . Shares have added about 12.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Seattle Genetics due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Seagen Q4 Earnings Miss Estimates, Revenues Top Mark
Seagen incurred a loss of 95 cents per share in the fourth quarter of 2021, wider than the Zacks Consensus Estimate of a loss of 79 cents. The company had reported earnings of 90 cents per share in the year-ago quarter. Net loss during this time was impacted by an upfront payment of $200 million owed to RemeGen.
Total revenues in the fourth quarter of 2021 were $430 million, declining 28.5% year over year. The top line, however, beat the Zacks Consensus Estimate of $403 million. Net product revenues in the fourth quarter were $369.2 million, up 26% year over year, driven by the strong uptake of Seagen’s marketed cancer drugs, Tukysa and Padcev.
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, namely, Adcetris, Padcev, Tukysa and the newly approved Tivdak.
Adcetris generated net sales of $176.3 million in the United States and Canada, up 8% year over year. The drug, sales of which reflected modest growth, is being evaluated in several label-expansion studies.
Padcev sales in the fourth quarter totaled $92.7 million, up 15.3% sequentially. Sale of the drug rose 34% on a year-over-year basis.
Tukysa’s fourth-quarter net sales were $94.1 million, up 8.7% sequentially. Tukysa sales increased 53% on a year-over-year basis.
The newly launched Tivdak generated sales worth $6.1 million in the first full quarter since its approval in September 2021.The drug is seeing a slow launch uptake.
Collaboration and license agreement revenues were $14.7 million, reflecting a significant decrease year over year. Royalty revenues of $46 million rose from the year-ago quarter’s $39.2 million. Seagen records royalty revenues on the sales of Adcetris from Takeda 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.
Research and development (R&D) expenses of $304.3 million increased 40.7% year over year, primarily owing to the upfront payment due under the RemeGen collaboration agreement for disitamabvedotin.
Selling, general and administrative (SG&A) expenses shot up 33.1% year over year to $210.9 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
Total revenues are expected in the range of $1.48-$1.54 billion.
Seagen expects Adcetris’ full-year 2022 net sales in the range of $730-$755 million. Padcev’s full-year net sales are expected in the range of $435-$455 million while Tukysa’s sales are anticipated in the band of $315-$335 million.
Seagen did not provide any sales guidance for its newest drug, Tivdak.
The company expects collaboration and license revenues in the band of $25-$30 million while royalty revenues are anticipated within $160-$170 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -113.22% due to these changes.
VGM Scores
Currently, Seattle Genetics has a poor Growth Score of F, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Seattle Genetics has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.