Seattle Genetics Earnings Call Cheat Sheet: Expanded Market Opportunities

On Monday, Seattle Genetics, Inc. (NASDAQ:SGEN) reported its fourth quarter earnings and discussed the following topics in its earnings conference call. Take a look.

Expanded Market Opportunities

Jason Kantor – RBC Capital Markets: You spent a lot of time talking about the expansion opportunities and the trial that you’re going to run, could you give us a little – can you quantify a little bit for us the – what you think the expanded market opportunities there are relative to the current on label opportunities and perhaps you know, some sense of when you might expect some readouts from some of these major studies?

Clay B. Siegall – President and CEO: Sure, we will look at the whole world of CD30 expression (indiscernible) frontline disease. We think it has substantially passed what our two online approvals are. Those are in the relapsed refractory setting as you know, with specific patient population, Hodgkin lymphoma, anaplastic large cell lymphoma. We believe that the different potential frontline indications in those diseases. The other diseases – other lymphomas, non-lymphomas really represent a very large opportunity for the company. I won’t give specific numbers at this point as we get into some of these other trials and we get deeper into trials, there’ll be a lot of good opportunity to present specifics of what we’re thinking about for these diseases, but at this point, I think I just like to say that it is very substantial opportunities. As far as timelines, we will present through the year many different pieces of data for a variety of different clinical trials that we are doing. I think I mentioned four or five different times in my scripted presentation that we’ve been planning on presenting data in 2012 on different clinical trials. So, I think this year you’ll see a lot of different pieces of data coming out. Also we discussed our first Phase III with ADCETRIS which we call AETHERA which we thought we would complete enrollment this year. So, that should be our first industry that would be coming out with date and we think could represent a strong opportunity for us to really expand our market size because it really look that post transplant in almost a maintenance type of approach. That’s how we think a very important setting for us; but in addition to that our first Phase III reading out on ADCETRIS the AETHERA trial as we call it. Our intention is to initiate during this year through the beginning of next year three more Phase IIIs that will give us the opportunity to expand ADCETRIS with real label indication. So, these are the studies focused on gaining additional and broader labels?

Jason Kantor – RBC Capital Markets: You are talking about the screening and treatment study with 2500 patients are going to screen and love to treat about 50 and that would imply about 2% CD30 positivity. I mean, are you finding CD30 and other tumors what are some of the other tumors you’re seeing it in and is that the right amount 2%.

Clay B. Siegall – President and CEO: I wouldn’t put too much connection to the number of patients on that trial to the number we are screening. So to answer you have multiple questions within there. Absolutely we’re finding this question in different areas and we’re very excited about it and we look towards — to presenting that later in this year in a suitable type conference setting and talking about it. It’s not express. CD30 is not expressed in every tumor type we’ve looked at, absolutely not. So, I wouldn’t think of it in terms of a percentage like you’re saying. As we look at tumor type we may screen a whole bunch one tumor type and then realize that’s not appropriate area to go to and not pursue that anymore and actually focus on different tumor types. So, the percentages that you’re coming up with what we said greater than 50 patients we want to treat in a Phase II out of the 2,500 and really not a direct reflection at the present time. It’s more of an overall that we want to screen a lot of patients and then in Phase II we want to put greater than 50. Keep in mind not every that’s positive will necessarily opt in to the trial. So, it’s a screening trial and a treatment trial separately and we’re really excited about it.

Therapy Duration

Marko Kozul – ThinkEquity: Congrats on a strong quarter as well. My first question is for the new commercial patients that initiated ADCETRIS treatment in the third quarter and might be facing their fifth or sixth cycle. Do you have any feedback from docs in terms of how long they plan on continuing therapy for these patients?

Clay B. Siegall – President and CEO: Marko thank you for that question about duration if you will. It’s still really – we’ve only been out about six months or even less than that it’s still a little too early for us to really predict duration of therapy. You can imagine we’re looking at it very close. In our pivotal trials if you look at median or mean of our pivotal trials as the range was seven to 10 roughly. So that’s been always our expectation, seven to 10, we understand that transplanters may use a shorter duration because their focus in the world and getting patients in the CR, they are really excited with ADCETRIS that put them into to transplant, give them a chance for cure, and that way AETHERA comes in, that’s a very important study, because that can provides them with an opportunity to go back to ADCETRIS. Then that’s on one hand. On the other hand, you have the non-transplanters and they may use it longer than seven to 10 cycles. So its mixture of how doctors use it and how they seek it to treat their patients, whether they are background is a transplanter, whether they’re and when you look at the community setting you have largely non-transplanters in the academic center, you have maybe a mix of them.

Marko Kozul – ThinkEquity: Maybe just a quick follow-up, I was wondering, what proportion of patients that were in the expanded access program and converted to commercial drug. What proportion of them are maybe still on drug or how have they faired during the fourth quarter?

Clay B. Siegall – President and CEO: That’s something piece of data that we’re not releasing, I appreciate the question on that. But one thing to keep in mind, patients that generally go on to expand that access program for any drug, as well as patients that immediately waiting for FDA approvals, they tend to be the worst prognosis of patients. So just please keep that in mind as you looking at our initial studies and initial duration. As you get patients that are healthier diagnosed earlier, able to get on this drug because drug exists, its there – it’s not they are not waiting for it. They are going to tend to become better patients and that probably translates into increased duration but that’s something we are watching.