European Commission approval will be no later than 10/20/2012
The European Commission, which has the authority to approve medicines for use in the European Union, generally follows the recommendations of the CHMP and typically renders a final decision within three months of the CHMP opinion (was issued on 7/20/2012). If the CHMP recommendation is formally adopted by the European Commission, ADCETRIS would be approved for marketing in all 27 member states of the European Union.
European Commission approval will trigger two milestone payments, one for each indication, totaling $25 million to Seattle Genetics under the collaboration agreement between Seattle Genetics and Millennium: The Takeda Oncology Company. Seattle Genetics is also entitled to tiered double-digit royalties with percentages starting in the mid-teens and escalating to the mid-twenties based on net sales of ADCETRIS within Millennium’s territories, subject to offsets for royalties paid by Millennium to third parties.
The continuance of milestones, royalties and development of new collaborations and drugs. SGEN is on track and will have the money to continue the train moving forward. Cost of manufacture additional Adcetris is relatively low and therefore profits fall to the bottom line.
$31 price target seems clearly in reach over the next month. Continue to like what I see.
Interesting take on use of drugs that are already on the market for cancer treatment by CNN's Sanjay Gupta this morning. Maybe these drugs will have even better results when combined with a linker such as Sgen's. It would be interesting to be able to get a "cheap" patent this way.
The push for cancer drugs is being pushed in how it is delievered. With approvals by the screening organizations I wonder if this could be a novel way of bringing new applications to market. Wonder what a new blockbuster applicaton would bring with substantially lower development costs. Seems also that many of the biopharmas are looking at use of existing drugs and compounds being used for different diseases.