Seattle Genetics, Inc. (SGEN - Analyst Report) reported first quarter 2013 net loss per share of 14 cents, narrower than the Zacks Consensus Estimate of a loss of 19 cents, but wider than the year-ago loss of 11 cents per share.
First quarter revenues were $57.3 million, compared with $48.2 million in the year-ago quarter. Revenues surpassed the Zacks Consensus Estimate of $54 million.
Net revenues for the first quarter included Adcetris revenues (down 1.7% to $33.9 million), collaboration and license agreement revenues (up 52.8% to $21 million) and royalty revenues. With Adcetris generating $33.9 million of revenues in this quarter, Seattle Genetics is on track to achieve its guidance of $130 million to $140 million by the end of 2013.
Research and development expenses increased 24% year over year to $47.7 million. Selling, general and administrative expenses fell 1.3% year over year to $21.9 million.
Seattle Genetics is making efforts to expand Adcetris’ label. In Jan 2013, a global phase III study (ECHELON-2) was initiated on Adcetris. In this study, Adcetris plus chemotherapy will be evaluated for the front-line treatment of CD30-positive mature T-cell lymphomas (MTCL) including patients with systemic anaplastic large cell lymphoma (sALCL) and other types of peripheral T-cell lymphomas.
Seattle Genetics intends to submit a supplemental biologics license application (sBLA) in the first half of 2013 for the use of Adcetris in the retreatment of patients and for extended duration of use beyond 16 cycles of therapy. Adcetris is approved for the treatment of relapsed or refractory Hodgkin lymphoma (HL) and sALCL.
By mid-2013, Seattle Genetics will initiate a phase I/II study of Adcetris in combination with bendamustine for second-line HL patients.
In the second half of 2013, Seattle Genetics will initiate a phase II frontline study of Adcetris in combination with Roche Holding / Biogen Idec’s (RHHBY / (BIIB - Analyst Report) Rituxan and standard chemotherapy (R-CHOP) for patients with diffuse large B-cell lymphoma.
Seattle Genetics has collaborations with various companies for the development of antibody-drug conjugates (ADCs). ADC collaborators are progressing on various programs.
Seattle Genetics currently carries a Zacks Rank #4 (Sell). Right now, Transcept Pharmaceuticals, Inc. looks more attractive with a Zacks Rank #1 (Strong Buy).