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Seagen Inc. reported a loss of $1.03 per share in the third quarter of 2022, wider than the Zacks Consensus Estimate of a loss of 92 cents. The company had reported a loss of $1.61 per share in the year-ago quarter.
Total revenues in the third quarter of 2022 were $510.3 million, increasing 20.3% year over year. The top line beat the Zacks Consensus Estimate of $469 million. Net product revenues in the third quarter were $428.1 million, up 16.8% year over year, driven by the strong uptake of Seagen’s portfolio of marketed cancer drugs.
Shares of the company have lost 15.1% in the year so far compared with the industry’s decline of 23.3%.
Image Source: Zacks Investment Research
Quarter in Detail
Seagen’s top line mainly comprises product revenues, collaboration and license agreement revenues, and royalties. The company currently markets four drugs, Adcetris, Padcev, Tukysa and the newly approved Tivdak.
Adcetris generated net sales of $219 million in the United States and Canada, up 18% year over year. The drug, which is the majority contributor to SGEN’s revenues, is being evaluated in several label-expansion studies. Successful development and potential approval should boost its sales in future quarters.
Padcev sales in the reported quarter totaled $105 million, down 15% sequentially. Sales of the drug rose 11% on a year-over-year basis.
Tukysa’s third-quarter net sales were $88 million, down 1.1% sequentially. Tukysa sales increased 1% on a year-over-year basis.
The newly launched Tivdak generated sales worth $16 million in the third quarter of 2022, reflecting a sequential increase of 7%.
Collaboration and license agreement revenues were $38 million, reflecting a significant increase year over year. The uptick was primarily due to an upfront license fee of $30 million received from Zai Lab Limited (ZLAB - Free Report) .
Last month, Seagen entered into an exclusive collaboration and license agreement with Zai Lab for the development and commercialization of Tivdak in mainland China, Hong Kong, Macau and Taiwan.
ZLAB obtained exclusive rights to develop and commercialize Tivdak in the given territory.
Royalty revenues of $44 million rose from the year-ago quarter’s $41 million. Seagen records royalty revenues on the sales of Adcetris from Takeda Pharmaceutical in ex-U.S. markets, as well as from its partnership with GlaxoSmithKline for Blenrep, and to a lesser extent, from Polivy’s sales under its collaboration with Roche (RHHBY - Free Report) .
Polivy is an antibody-drug conjugate that uses Seagen’s technology and is commercialized by Roche.
In August 2022, Roche announced that the FDA accepted its supplemental biologics license application seeking approval for Polivy in combination with Rituxan plus cyclophosphamide, doxorubicin and prednisone (R-CHP), for treating adult patients with previously untreated diffuse large B-cell lymphoma. A decision from the regulatory body is expected by Apr 2, 2023.
Research and development expenses of $385 million decreased 16.1% year over year, primarily owing to reduced investment in clinical development programs.
Selling, general and administrative expenses increased 16.6% year over year to $210 million, mainly on account of higher costs related to the recent commercialization activities as well as costs incurred on other corporate activities.
2022 Guidance
Seagen reupdated the financial guidance for 2022. Total revenues are now expected in the range of $1.82-$1.86 billion compared with the earlier projection of $1.71-$1.79 billion. The Zacks Consensus Estimate for the metric stands at $1.86 billion.
Total net product revenues are now expected in the range of $1.58-$1.61 billion compared with the earlier projection of $1.50-$1.56 billion.
Seagen expects Adcetris’ full-year 2022 net sales in the band of $805-$820 million compared with the earlier projection of $750-$775 million. Padcev’s full-year net sales are expected to be in the $435-$445 million range compared with the earlier expectation of $435-$455 million, while Tukysa’s sales are now anticipated in the band of $340-$350 million compared with the earlier projection of $315-$335 million.
The company expects collaboration and license revenues in the band of $85-$90 million compared with the earlier projection of $50-$60 million, while royalty revenues are anticipated within the $155-$160 million range compared with the earlier expectation of $160-$170 million.
Recent Updates
In September 2022, Seagen, Astellas and Merck (MRK - Free Report) announced data from the phase Ib/II EV-103 study of cohort K, which evaluated Padcev in combination with MRK’s blockbuster anti-PD-1 therapy, Keytruda, for first-line treatment of patients with unresectable locally advanced or metastatic urothelial cancer who are ineligible to receive cisplatin-based chemotherapy.
Data from the same showed that treatment with the combo of Padcev plus Keytruda led to an encouraging overall response rate of 64.5% and a manageable safety profile.
Based on this data, a supplemental biologics license application was filed to the FDA for Padcev in combination with Keytruda as a first-line treatment for advanced urothelial cancer in October.
Merck’s biggest revenue generator, Keytruda, is approved for treating several types of cancer indications. MRK continues to study Keytruda for more cancer indications.
Image: Bigstock
Seagen's (SGEN) Q3 Earnings Miss, Revenues Surpass Estimates
Seagen Inc. reported a loss of $1.03 per share in the third quarter of 2022, wider than the Zacks Consensus Estimate of a loss of 92 cents. The company had reported a loss of $1.61 per share in the year-ago quarter.
Total revenues in the third quarter of 2022 were $510.3 million, increasing 20.3% year over year. The top line beat the Zacks Consensus Estimate of $469 million. Net product revenues in the third quarter were $428.1 million, up 16.8% year over year, driven by the strong uptake of Seagen’s portfolio of marketed cancer drugs.
Shares of the company have lost 15.1% in the year so far compared with the industry’s decline of 23.3%.
Image Source: Zacks Investment Research
Quarter in Detail
Seagen’s top line mainly comprises product revenues, collaboration and license agreement revenues, and royalties. The company currently markets four drugs, Adcetris, Padcev, Tukysa and the newly approved Tivdak.
Adcetris generated net sales of $219 million in the United States and Canada, up 18% year over year. The drug, which is the majority contributor to SGEN’s revenues, is being evaluated in several label-expansion studies. Successful development and potential approval should boost its sales in future quarters.
Padcev sales in the reported quarter totaled $105 million, down 15% sequentially. Sales of the drug rose 11% on a year-over-year basis.
Tukysa’s third-quarter net sales were $88 million, down 1.1% sequentially. Tukysa sales increased 1% on a year-over-year basis.
The newly launched Tivdak generated sales worth $16 million in the third quarter of 2022, reflecting a sequential increase of 7%.
Collaboration and license agreement revenues were $38 million, reflecting a significant increase year over year. The uptick was primarily due to an upfront license fee of $30 million received from Zai Lab Limited (ZLAB - Free Report) .
Last month, Seagen entered into an exclusive collaboration and license agreement with Zai Lab for the development and commercialization of Tivdak in mainland China, Hong Kong, Macau and Taiwan.
ZLAB obtained exclusive rights to develop and commercialize Tivdak in the given territory.
Royalty revenues of $44 million rose from the year-ago quarter’s $41 million. Seagen records royalty revenues on the sales of Adcetris from Takeda Pharmaceutical in ex-U.S. markets, as well as from its partnership with GlaxoSmithKline for Blenrep, and to a lesser extent, from Polivy’s sales under its collaboration with Roche (RHHBY - Free Report) .
Polivy is an antibody-drug conjugate that uses Seagen’s technology and is commercialized by Roche.
In August 2022, Roche announced that the FDA accepted its supplemental biologics license application seeking approval for Polivy in combination with Rituxan plus cyclophosphamide, doxorubicin and prednisone (R-CHP), for treating adult patients with previously untreated diffuse large B-cell lymphoma. A decision from the regulatory body is expected by Apr 2, 2023.
Research and development expenses of $385 million decreased 16.1% year over year, primarily owing to reduced investment in clinical development programs.
Selling, general and administrative expenses increased 16.6% year over year to $210 million, mainly on account of higher costs related to the recent commercialization activities as well as costs incurred on other corporate activities.
2022 Guidance
Seagen reupdated the financial guidance for 2022. Total revenues are now expected in the range of $1.82-$1.86 billion compared with the earlier projection of $1.71-$1.79 billion. The Zacks Consensus Estimate for the metric stands at $1.86 billion.
Total net product revenues are now expected in the range of $1.58-$1.61 billion compared with the earlier projection of $1.50-$1.56 billion.
Seagen expects Adcetris’ full-year 2022 net sales in the band of $805-$820 million compared with the earlier projection of $750-$775 million. Padcev’s full-year net sales are expected to be in the $435-$445 million range compared with the earlier expectation of $435-$455 million, while Tukysa’s sales are now anticipated in the band of $340-$350 million compared with the earlier projection of $315-$335 million.
The company expects collaboration and license revenues in the band of $85-$90 million compared with the earlier projection of $50-$60 million, while royalty revenues are anticipated within the $155-$160 million range compared with the earlier expectation of $160-$170 million.
Recent Updates
In September 2022, Seagen, Astellas and Merck (MRK - Free Report) announced data from the phase Ib/II EV-103 study of cohort K, which evaluated Padcev in combination with MRK’s blockbuster anti-PD-1 therapy, Keytruda, for first-line treatment of patients with unresectable locally advanced or metastatic urothelial cancer who are ineligible to receive cisplatin-based chemotherapy.
Data from the same showed that treatment with the combo of Padcev plus Keytruda led to an encouraging overall response rate of 64.5% and a manageable safety profile.
Based on this data, a supplemental biologics license application was filed to the FDA for Padcev in combination with Keytruda as a first-line treatment for advanced urothelial cancer in October.
Merck’s biggest revenue generator, Keytruda, is approved for treating several types of cancer indications. MRK continues to study Keytruda for more cancer indications.
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.