SGEN 3Q 2013 Results - stronger revenues and cash reserves, higher costs and net loss, upward revision for Adcetris
Total revenues in the third quarter of 2013 were $71.0 million, compared to $49.8 million in the third quarter of 2012. Revenues for the nine month period ended September 30, 2013 were $201.9 million, compared to $146.9 million for the same period in 2012. Revenues in 2013 included ADCETRIS net product sales of $36.5 million in the third quarter and $106.1 million for the year-to-date. Revenues in 2013 also included ADCETRIS royalty revenues of $5.3 million for the third quarter and $11.2 million for the year-to-date from international sales of ADCETRIS by Takeda. In addition, revenues reflect amounts earned under the company’s ADCETRIS and ADC collaborations totaling $29.2 million in the third quarter of 2013 and $84.5 million for the year-to-date in 2013. Collaboration revenues have increased in 2013 driven by the company’s ADCETRIS collaboration with Takeda as well as its ADC collaborations.
Total costs and expenses for the third quarter of 2013 were $94.8 million, compared to $63.6 million for the third quarter of 2012. For the first nine months of 2013, total costs and expenses were $249.0 million, compared to $193.4 million in the first nine months of 2012. The planned increases in 2013 costs and expenses were primarily driven by ADCETRIS expenses, including clinical trials to explore potential additional uses of ADCETRIS and drug supply to Takeda under the collaboration. Research and development expenses also include increased investment in the company’s ADC pipeline programs….
Net loss for the third quarter of 2013 was $23.7 million, or $0.19 per share, compared to a net loss of $13.7 million, or $0.12 per share, for the third quarter of 2012. For the nine months ended September 30, 2013, net loss was $46.8 million, or $0.39 per share, compared to a net loss of $43.2 million, or $0.37 per share, for the same period in 2012….
redhot & maui:
Wow, I'm impressed by your respectful exchange of views. A real (and sadly infrequent) pleasure to see on the YMBs. Let me guess that you're both experienced investors who understand that when it comes to investing one needs to leave their pride and arrogance checked at the door.
I may spend more time on this board, as I do have a small position in SGEN...
Needaclue: Aside from a few brief periods when trolls and Cramer types have shown up and then moved on, this has been a remarkably well behaved Yahoo message board. Some of us have been in SGEN for quite some time and some of us (well, actually, some of the others) know quite a bit about biotechs. Stick around. It's a good board.
Part 2: As of September 30, 2013, Seattle Genetics had $373.8 million in cash, cash equivalents and investments, compared to $364.3 million as of December 31, 2012.
2013 Revenue Outlook
Seattle Genetics is increasing its guidance and now anticipates that ADCETRIS net product sales will be in the range of $140 million to $145 million in 2013 and that collaboration and license agreement revenues will be in the range of $95 million to $100 million in 2013.
My take for what it's worth. Adcetris revenue flat. SGEN's most advanced pipeline candidate (sgn-75) canceled. Revenue outlook flat. Next pipeline candidate years and years away.
This could sell off a little more. There is lots of good stuff too.