Benzinga  Sep 15  Comment 
  Goldman Sachs raised the price target for Global Payments Inc (NYSE: GPN) from $80 to $88. Global Payments shares closed at $73.52 on Wednesday. Morgan Stanley raised the price target for Teck Resources Ltd (USA) (NYSE: TCK) from...
Benzinga  Sep 15  Comment 
Seattle Genetics, Inc. (NASDAQ: SGEN) received a ratings bump from Goldman Sachs to Neutral from Sell after the brokerage revised its Adcetris U.S. sales estimates in 1L Hodgkin's lymphoma (HL) "to reflect greater market penetration per physician...
Benzinga  Sep 9  Comment 
  Finisar Corporation (NASDAQ: FNSR) shares reached a new 52-week high of $26.29 as the company reported upbeat results for its first quarter and issued a strong forecast for the current quarter. Lexicon Pharmaceuticals, Inc. (NASDAQ:...
Benzinga  Sep 7  Comment 
Morgan Stanley’s Andrew S. Berens believes Seattle Genetics, Inc. (NASDAQ: SGEN)'s Adcetris is a $2 billion products, with growth primarily being driven by higher usage in transplant settings, as well as a move to front-line lymphoma...
Motley Fool  Jul 29  Comment 
Sales of the biotech's only drug continue to climb.


Seattle Genetics, Inc. is a biotechnology company developing monoclonal antibody-based therapies for treating cancer and autoimmune disease.[1] The company is working to develop next generation monoclonal therapies called antibody-drug conjugates (ADCs). The technology links potent synthetic drugs with monoclonal antibodies. The company has collaborations with major industry players all over the world such as: Millennium Pharmaceuticals, Bayer AG (BAYRY), Celldex Therapeutic (BER:TCE1), GlaxoSmithKline (GSK), Genentech (DNA), and quite a few others.[1] Leveraging these collaborations the company is working to navigate the high development costs and regulations that are indicative of the drug industry.

Business Growth

Seattle Genetics does not have any commercial products yet, but had revenue of $107.5 million for 2010. This was an increase of 107% from 2009. The company derived its revenue from payments that included technology access and maintenance fees, milestone and reimbursement payments from its collaborations. Its large jump from 2009 was primarily due to payments received from its collaborations with Genentech, Millennium, and other ADC collaborations.[1]

Trends and Forces

High Costs of Drug Development make it Difficult for Small Companies like Seattle Genetics

For more detailed information on the FDA approval process, see also Clinical trials.

Developing a new drug is a time-consuming and costly endeavor. Hundreds of thousands of candidate compounds must be screened to identify a handful of potential drugs, and even fewer of these candidate drugs are found to be effective at treating a disease. The drug must then pass strict safety standards in several series of clinical trials. The entire process of developing a new drug and bringing it to the market takes up to 10 to 15 years and on average costs $1.3 billion.[2]

Tightening Food and Drug Administration (FDA) Regulations

Beginning in 2009, the FDA implemented a series of reforms that include stricter monitoring of drug adverse events, more funding for the agency, stronger ability to force product recalls, more scientific expertise within the agency, more transparency. Even before 2009 the result has been a much more conservative FDA, demanding more product information.[3]


The various aspects of patent protection and the extremely high costs of researching and developing drugs marks the pharmaceutical industry with high risk and high competitiveness. It is important to keep in mind when considering a comparison of industry players that competition does not arise between each company as a whole, but rather between specific drug areas and their relative advantages in therapeutic treatment. Due to this fact many of Seattle Genetic's collaborators are competitors since they are developing therapies in similar disease areas. They include:


  1. 1.0 1.1 1.2 Seattle Genetics 2010 10k
  2. DiMasi, Joseph, “The Cost of Biopharmaceutical R&D: Is Biotech Different?,” Managerial and Decision Economics, 2007
  3. The FDA: A tough tonic
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki