Seattle Genetics to receive milestone payments as Genentech advances two ADCs
Seattle Genetics (SGEN) will receive undisclosed milestone payments under its antibody-drug conjugate collaboration with Genentech, a member of the Roche Group (RHHBY). The milestones were triggered by Genentech’s advancement of two ADCs utilizing Seattle Genetics technology into phase II clinical development. The phase II randomized, open-label study is designed to evaluate the safety and efficacy of ADCs anti-CD22 and DCDS4501A each in combination with Rituxan in patients with relapsed or refractory follicular non-Hodgkin lymphoma and relapsed or refractory diffuse large B-cell lymphoma.
Should be very interesting how much these milestones amount to. Of course the details are undisclosed until SGEN has to report the income. With the number of ADCs and milestones to be obtained cash flow and royalty income needs to be factored into this investment. If the number of ADCs continues to increase and the shot at milestones and royalites are forthcoming, then the analysts have undervalued this stock.