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Seagen Inc. incurred a loss of 47 cents per share in the second quarter of 2021, narrower than the Zacks Consensus Estimate of a loss of 61 cents. The company reported a loss of 54 cents in the year-ago quarter.
Revenues of $388.5 million rose 39.7% year over year, primarily driven by the strong uptake of Tukysa, Padcev and Adcetris. The top line also beat the Zacks Consensus Estimate of $356 million.
Shares of Seagen were up 2.01% in after-hours trading on Thursday owing to better-than-expected earnings results. However, the stock has plunged 16.1% so far this year against the industry’s increase of 0.3%.
Image Source: Zacks Investment Research
Quarter in Detail
Seagen’s top line mainly comprises product revenues, collaboration and license agreement revenues, and royalties.
Adcetris generated net sales of $181.9 million in the United States and Canada, up 9% year over year. The drug is being evaluated in several label expansion studies. A successful development and a potential approval should boost its sales in the future.
Padcev sales in the second quarter totaled $82.4 million, up 18.1% sequentially. Sale of the drug rose 44% on a year-over-year basis.
Tukysa’s second-quarter net sales were $83 million, up 18.1% sequentially. Tukysa sales soared significantly on a year-over-year basis. The drug received the FDA approval in mid-April 2020. In February 2021, the European Commission granted a marketing authorization to the Tukysa.
Collaboration and license agreement revenues were $4.8 million, reflecting a decrease of 23.8% year over year. Royalty revenues of $36.3 million rose from the year-ago quarter’s $31.2 million. Seagen recorded royalty revenues on the sales of Adcetris from Takeda in the ex-U.S. markets, from its collaboration with GlaxoSmithKline (GSK - Free Report) for Blenrep and to a lesser extent, from Polivy’s sales under its collaboration with Roche (RHHBY - Free Report) .
Research and development (R&D) expenses of $234.9 million increased 18.5% year over year, primarily due to higher investments in developing late-stage pipeline candidates.
Selling, general and administrative (SG&A) expenses shot up 31.4% year over year to $165.1 million, mainly on account of higher costs related to the recent launch of Tukysa in Europe as well as higher costs for international expansion.
2021 Guidance
Seagen maintained the financial guidance it provided earlier this year.
The company projects Adcetris’ full-year net sales in the range of $675-$700 million. Padcev’s full-year net sales are expected in the range of $310-$325 million while Tukysa’s sales are anticipated in the band of $300-$315 million.
The company expects collaboration and license revenues to be less than $20 million in 2021 while royalty revenues are anticipated within $125-$135 million.
Seagen expects SG&A expenses within $650-$725 million. R&D is estimated in the bracket of $900 million to $1 billion.
Recent Updates
In July 2021, the FDA approved two supplemental biologics license applications (sBLA) that sought a label expansion for Padcev.
The first sBLA approval converts Padcev’s accelerated approval to a regular approval for adult patients with locally advanced or metastatic urothelial cancer who were previously treated with platinum-based chemotherapy and a PD-1/PD-L1 inhibitor. The second sBLA approval makes Padcev the first and the only drug approved by the FDA to treat patients with locally advanced or metastatic urothelial cancer who were previously treated with a PD-1/L1 inhibitor and are not eligible for cisplatin. The agency granted a regular approval for the drug and also sanctioned its label expansion based on two sBLAs reviewed under the Real-Time Oncology Review pilot program.
We remind investors that in April 2021, Seagen along with its Danish partner Genmab A/S (GMAB - Free Report) announced that the FDA accepted and granted a priority review to the biologics license application (BLA) for the investigational antibody drug conjugate tisotumabvedotin to treat recurrent or metastatic cervical cancer in patients whose disease progressed on or after chemotherapy. A decision from the regulatory body is expected on Oct 10, 2021. A potential approval of the same will boost the company’s growth prospects.
Image: Bigstock
Seagen (SGEN) Q2 Earnings Beat Estimates, Revenues Surge Y/Y
Seagen Inc. incurred a loss of 47 cents per share in the second quarter of 2021, narrower than the Zacks Consensus Estimate of a loss of 61 cents. The company reported a loss of 54 cents in the year-ago quarter.
Revenues of $388.5 million rose 39.7% year over year, primarily driven by the strong uptake of Tukysa, Padcev and Adcetris. The top line also beat the Zacks Consensus Estimate of $356 million.
Shares of Seagen were up 2.01% in after-hours trading on Thursday owing to better-than-expected earnings results. However, the stock has plunged 16.1% so far this year against the industry’s increase of 0.3%.
Image Source: Zacks Investment Research
Quarter in Detail
Seagen’s top line mainly comprises product revenues, collaboration and license agreement revenues, and royalties.
Adcetris generated net sales of $181.9 million in the United States and Canada, up 9% year over year. The drug is being evaluated in several label expansion studies. A successful development and a potential approval should boost its sales in the future.
Padcev sales in the second quarter totaled $82.4 million, up 18.1% sequentially. Sale of the drug rose 44% on a year-over-year basis.
Tukysa’s second-quarter net sales were $83 million, up 18.1% sequentially. Tukysa sales soared significantly on a year-over-year basis. The drug received the FDA approval in mid-April 2020. In February 2021, the European Commission granted a marketing authorization to the Tukysa.
Collaboration and license agreement revenues were $4.8 million, reflecting a decrease of 23.8% year over year. Royalty revenues of $36.3 million rose from the year-ago quarter’s $31.2 million. Seagen recorded royalty revenues on the sales of Adcetris from Takeda in the ex-U.S. markets, from its collaboration with GlaxoSmithKline (GSK - Free Report) for Blenrep and to a lesser extent, from Polivy’s sales under its collaboration with Roche (RHHBY - Free Report) .
Research and development (R&D) expenses of $234.9 million increased 18.5% year over year, primarily due to higher investments in developing late-stage pipeline candidates.
Selling, general and administrative (SG&A) expenses shot up 31.4% year over year to $165.1 million, mainly on account of higher costs related to the recent launch of Tukysa in Europe as well as higher costs for international expansion.
2021 Guidance
Seagen maintained the financial guidance it provided earlier this year.
The company projects Adcetris’ full-year net sales in the range of $675-$700 million. Padcev’s full-year net sales are expected in the range of $310-$325 million while Tukysa’s sales are anticipated in the band of $300-$315 million.
The company expects collaboration and license revenues to be less than $20 million in 2021 while royalty revenues are anticipated within $125-$135 million.
Seagen expects SG&A expenses within $650-$725 million. R&D is estimated in the bracket of $900 million to $1 billion.
Recent Updates
In July 2021, the FDA approved two supplemental biologics license applications (sBLA) that sought a label expansion for Padcev.
The first sBLA approval converts Padcev’s accelerated approval to a regular approval for adult patients with locally advanced or metastatic urothelial cancer who were previously treated with platinum-based chemotherapy and a PD-1/PD-L1 inhibitor. The second sBLA approval makes Padcev the first and the only drug approved by the FDA to treat patients with locally advanced or metastatic urothelial cancer who were previously treated with a PD-1/L1 inhibitor and are not eligible for cisplatin. The agency granted a regular approval for the drug and also sanctioned its label expansion based on two sBLAs reviewed under the Real-Time Oncology Review pilot program.
We remind investors that in April 2021, Seagen along with its Danish partner Genmab A/S (GMAB - Free Report) announced that the FDA accepted and granted a priority review to the biologics license application (BLA) for the investigational antibody drug conjugate tisotumabvedotin to treat recurrent or metastatic cervical cancer in patients whose disease progressed on or after chemotherapy. A decision from the regulatory body is expected on Oct 10, 2021. A potential approval of the same will boost the company’s growth prospects.
Seagen Inc. Price, Consensus and EPS Surprise
Seagen Inc. price-consensus-eps-surprise-chart | Seagen Inc. Quote
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.