Seattle Genetics Inc. Earnings Cheat Sheet: Revenue Grows After Three Straight Declines

Seattle Genetics, Inc. (NASDAQ:SGEN) reported its results for the third quarter. Seattle Genetics is a biotechnology company focused on the development and commercialization of monoclonal antibody-based therapies for the treatment of cancer and autoimmune disease.

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Seattle Genetics Earnings Cheat Sheet for the Third Quarter

Results: Loss widened to $40.7 million (35 cents per diluted share) from $34.9 million (loss of 34 cents per share) in the same quarter a year earlier.

Revenue: Rose 29.2% to $20.7 million from the year earlier quarter.

Actual vs. Wall St. Expectations: SGEN beat the mean analyst estimate of a loss of 46 cents per share. It beat the average revenue estimate of $13.6 million.

Quoting Management: “The approval of ADCETRIS during the third quarter marked a transformative milestone for Seattle Genetics and our goal of bringing innovative new drugs to cancer patients in need,” said Clay B. Siegall, Ph.D., President and Chief Executive Officer of Seattle Genetics. “We believe that the strong first partial quarter of ADCETRIS sales reflects our commercial preparedness, effective launch execution and the unmet medical need of patients in the approved indications. We are continuing to expand awareness of ADCETRIS among oncologists, and are working with physicians and patients to facilitate the reimbursement process through our SeaGen Secure patient assistance program. In parallel, we are focused on maximizing the potential of ADCETRIS through a broad clinical development program evaluating ADCETRIS in earlier lines of Hodgkin lymphoma and systemic ALCL and in other CD30-positive malignancies. In addition, we and our collaborators are advancing a robust pipeline of clinical and preclinical ADC programs.”

Key Stats:

A year-over-year revenue increase last quarter snaps a streak of three consecutive quarters of revenue declines. Revenue fell 64.6% in the second quarter, 73.8% in the first quarter and 62.6% in the fourth quarter of the last fiscal year.

The company topped expectations last quarter after falling short of forecasts in the second quarter with a loss of 45 cents versus a mean estimate of a loss of 39 cents per share.

Looking Forward: Expectations for the company’s next quarter performance are higher than they were ninety days ago. The average estimate for the fourth quarter is now at a loss of 42 cents per share, up from a loss of 49 cents. Over the past sixty days, the average estimate for the fiscal year has risen from a loss of $1.65 to a loss of $1.64.

Competitors to Watch: Pfizer Inc. (NYSE:PFE), Bristol Myers Squibb Co. (NYSE:BMY), Biogen Idec Inc. (NASDAQ:BIIB), Celldex Therapeutics, Inc. (NASDAQ:CLDX), Genzyme Corporation (NASDAQ:GENZ), Micromet Inc. (NASDAQ:MITI), Allos Therapeutics, Inc. (NASDAQ:ALTH), Cephalon, Inc. (NASDAQ:CEPH), Celgene Corporation (NASDAQ:CELG), and ImmunoGen, Inc. (NASDAQ:IMGN).

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(Source: Xignite Financials)

 

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