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Seagen's (SGEN) Q4 Earnings & Sales Beat Estimates, Stock Up
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Seagen Inc. reported a loss of 80 cents per share in the fourth quarter of 2022, narrower than the Zacks Consensus Estimate of a loss of $1.02. The company reported a loss of 95 cents per share in the year-ago quarter.
Total revenues in the fourth quarter of 2022 were $528 million, increasing 22.93% year over year. The top line beat the Zacks Consensus Estimate of $483 million. Net product revenues in the year-ago quarter were $430 million, up 22.79% year over year, driven by the strong uptake of Seagen’s portfolio of marketed cancer drugs.
Shares of Seagen rallied 6.33% in the after-market hours in response to the better-than-expected financial performance in the fourth quarter of 2022.
In the past year, the shares of the company have increased by 14.4% against the industry’s fall of 7.8%.
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 $238 million in the United States and Canada, up 35% year over year. The drug, which is the major contributor to SGEN’s revenues, is being evaluated in several label expansion studies.
Padcev sales in the reported quarter totaled $122 million. Sales of the drug rose 32% on a year-over-year basis.
Tukysa’s fourth-quarter net sales were $86 million, down 9% on a year-over-year basis.
The newly launched Tivdak generated sales worth $18 million in the fourth quarter of 2022, reflecting a sequential increase of 12.5%.
Collaboration and license agreement revenues were $11 million in the fourth quarter, marking a decrease from the year-ago quarter. However, collaboration and license agreement revenues for the full year of 2022 increased, compared with the same period in 2021. The uptick was primarily driven by an upfront license fee of $30 million received from Zai Lab Limited (ZLAB - Free Report) .
In September 2022, 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 $53 million rose by 15.28% from the year-ago quarter’s $46 million. Seagen records royalty revenues on the sales of Adcetris from Takeda Pharmaceutical in the ex-U.S. markets, as well as 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.
Research and development expenses of $358 million increased 17.76% year over year, primarily driven by continued investment in the development of approved drugs and pipeline programs.
Selling, general and administrative expenses increased 2.37% year over year to $216 million, mainly on account of higher costs related to the recent commercialization activities as well as costs incurred on other corporate activities.
Cash, cash equivalents and investments amounted to $1.74 billion for Seagen at the end of the fourth quarter of 2022.
Recent Updates
In November 2022, the FDA approved Adcetris for the treatment of pediatric patients, aged two years and above, with previously untreated high-risk classical Hodgkin lymphoma. This approval granted the company pediatric exclusivity which further extends Adcetris’ U.S. market exclusivity by six months.
In December 2022, Seagen, Astellas and Merck (MRK - Free Report) announced the FDA has accepted their supplemental biologics license application and granted priority review to Padcev in combination with Keytruda for the treatment of first-in-line advanced or metastatic urothelial cancer. This priority review grant is based on 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.
The FDA is expected to announce its decision in April 2023.
Merck’s biggest revenue generator, Keytruda, is approved for treating several types of cancer indications. MRK continues to study Keytruda for more cancer indications.
In January 2022, Seagen announced that the FDA has granted accelerated approval to Tuksya, in combination with trastuzumab, for adult patients with RASwild-type, HER2-positive unresectable or metastatic colorectal cancer.
Full-Year 2022
Revenues in the full-year 2022 were clocked at $1.96 billion, portraying a 24.65% increase compared with 2021 results. Sales surpassed the Zacks Consensus Estimate of $1.92 billion as well as the guided range of $1.82-$1.86 billion.
Loss per share for the full year was $3.30 which is narrower than the Zacks Consensus Estimate of a loss of $3.54.
2023 Guidance
Seagen has provided its financial guidance for 2023. Total revenues are now expected in the range of $2.14-$2.24 billion.
Total net product revenues are expected in the range of $1.93-$2.00 billion rolling into 2023.
The company expects collaboration and license revenues in the band of $45-$55 million while royalty revenues are anticipated within the $170-$185 million range.
Image: Bigstock
Seagen's (SGEN) Q4 Earnings & Sales Beat Estimates, Stock Up
Seagen Inc. reported a loss of 80 cents per share in the fourth quarter of 2022, narrower than the Zacks Consensus Estimate of a loss of $1.02. The company reported a loss of 95 cents per share in the year-ago quarter.
Total revenues in the fourth quarter of 2022 were $528 million, increasing 22.93% year over year. The top line beat the Zacks Consensus Estimate of $483 million. Net product revenues in the year-ago quarter were $430 million, up 22.79% year over year, driven by the strong uptake of Seagen’s portfolio of marketed cancer drugs.
Shares of Seagen rallied 6.33% in the after-market hours in response to the better-than-expected financial performance in the fourth quarter of 2022.
In the past year, the shares of the company have increased by 14.4% against the industry’s fall of 7.8%.
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 $238 million in the United States and Canada, up 35% year over year. The drug, which is the major contributor to SGEN’s revenues, is being evaluated in several label expansion studies.
Padcev sales in the reported quarter totaled $122 million. Sales of the drug rose 32% on a year-over-year basis.
Tukysa’s fourth-quarter net sales were $86 million, down 9% on a year-over-year basis.
The newly launched Tivdak generated sales worth $18 million in the fourth quarter of 2022, reflecting a sequential increase of 12.5%.
Collaboration and license agreement revenues were $11 million in the fourth quarter, marking a decrease from the year-ago quarter. However, collaboration and license agreement revenues for the full year of 2022 increased, compared with the same period in 2021. The uptick was primarily driven by an upfront license fee of $30 million received from Zai Lab Limited (ZLAB - Free Report) .
In September 2022, 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 $53 million rose by 15.28% from the year-ago quarter’s $46 million. Seagen records royalty revenues on the sales of Adcetris from Takeda Pharmaceutical in the ex-U.S. markets, as well as 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.
Research and development expenses of $358 million increased 17.76% year over year, primarily driven by continued investment in the development of approved drugs and pipeline programs.
Selling, general and administrative expenses increased 2.37% year over year to $216 million, mainly on account of higher costs related to the recent commercialization activities as well as costs incurred on other corporate activities.
Cash, cash equivalents and investments amounted to $1.74 billion for Seagen at the end of the fourth quarter of 2022.
Recent Updates
In November 2022, the FDA approved Adcetris for the treatment of pediatric patients, aged two years and above, with previously untreated high-risk classical Hodgkin lymphoma. This approval granted the company pediatric exclusivity which further extends Adcetris’ U.S. market exclusivity by six months.
In December 2022, Seagen, Astellas and Merck (MRK - Free Report) announced the FDA has accepted their supplemental biologics license application and granted priority review to Padcev in combination with Keytruda for the treatment of first-in-line advanced or metastatic urothelial cancer. This priority review grant is based on 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.
The FDA is expected to announce its decision in April 2023.
Merck’s biggest revenue generator, Keytruda, is approved for treating several types of cancer indications. MRK continues to study Keytruda for more cancer indications.
In January 2022, Seagen announced that the FDA has granted accelerated approval to Tuksya, in combination with trastuzumab, for adult patients with RASwild-type, HER2-positive unresectable or metastatic colorectal cancer.
Full-Year 2022
Revenues in the full-year 2022 were clocked at $1.96 billion, portraying a 24.65% increase compared with 2021 results. Sales surpassed the Zacks Consensus Estimate of $1.92 billion as well as the guided range of $1.82-$1.86 billion.
Loss per share for the full year was $3.30 which is narrower than the Zacks Consensus Estimate of a loss of $3.54.
2023 Guidance
Seagen has provided its financial guidance for 2023. Total revenues are now expected in the range of $2.14-$2.24 billion.
Total net product revenues are expected in the range of $1.93-$2.00 billion rolling into 2023.
The company expects collaboration and license revenues in the band of $45-$55 million while royalty revenues are anticipated within the $170-$185 million range.
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 #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.