If I am properly interpreting this evening's filings, the Baker brothers and their various entities bought more than 400,000 additional shares in recent days. I would call that a reasonably significant vote of confidence. (As I've said in the past, if the Bakers are still happy in SGEN, I'm still happy in SGEN.)
Friday night's latest batch of filings suggest that the insider Baker brothers bought another 200,000+ shares in the last few days. If you're keeping score at home, that would be in the neighborhood of an additional three-quarters of a million shares during the last 10 days or so. One has to conclude that, as insiders, they have reason to be confident of the future. One also has to guess that, as investors, they have more patience than...say...scr.
I've been looking (hoping) for that since this rut started. Given the pedigree (qualifications) of BB this is a forceful reiteration of their initial assessment of SGEN and confirmation that the beating inflicted on it in the past 2.5 months has not a thing to do with how trials are progressing and everything to do with market mood and index funds having to dump indiscriminately in proportions to the index weighting of the security.
The story of SGEN (the stock) is way out of synch with SGEN the company. Mr Byrne of BoA is blowing smoke when he states that frontline approval of ADCETRIS is already baked in the current price. Not sure where he learned math but frontline alone will quintuple the addressable market for the currently approved indications and given current level worldwide sales of ~ $250 million/year, a 5X increase will bring sales to $1.25 Billions/year even before potential expansion for new indications. Can Mr Byrne spell blockbuster? He best get a recommendation from old George Farmer (the former Cassandra) for a new line of work just in case his current job does not work out.
Just in case it has been forgotten there also are over $3.5 billion in potential milestone payments from existing collaboration plus royalties on sales of any resulting drugs in addition to a nicely progressing extensive pipeline with, so far, very convincing results with more being served shortly.
Given all that, a current $4.4 billion MC is an egregious mispricing that will not last for long. Either there is a quick retracement once cooler heads prevail again in the market or someone could steal the bus (not likely to happen with BB in the front seat).
Kool, though the Bakers have a history of investing in, building up and then selling biotech companies to acquirers at large profits, they are the most inside of insiders at SGEN and they made sure that the company adopted a poison pill clause several years ago. So, if the company ever is sold, I have some confidence that the Bakers (and we) wont be low-balled on the price. Also, as you know, Siegall has signaled that he has no interest in selling the company (though CEOs say that all the time.)