All biotechs are volatile, but SGEN had been pretty stable for a while, but the volatility over the last few sessions has gone through the roof. Usually that's a sign of certain material events and in this case one can assume it was the celldex news and canadian BLA filing etc. I think the next one is the actual ASCO presentations and perhaps EU approval anytime may be June?
But seriously, proof that SeaGen/s ADC technology works in solid tumors should be worth another $5 per share right now...but I guess it will take several months to get there?
My take is that the CLDX news is particularly good news for SGEN investors, as it really validates the technology, in that, if you get a targeted agent to the right subset of patients, you can have a drug that works, similar to Adcetris. The study regarding with the screening of patients that would fit well with Adcetris in other cancers should start getting analysts adding up the potential revenues, and once they do let's see if they get anywhere close to the $1B in revenues that Clay mentioned in the Q1 call. This will all take some time, particularly with all of the short interest, that will have to unwind itself at some point, assuming continued favorable news. Short term, markets are all "rigged", take a look at FB! Long term though, the price will follow the data, wherever that takes it....if you are long you just have to be patient.