Jefferies Says Cost-Effectiveness Analysis Suggests Broad Seattle Genetics (SGEN) Adcetris First-Line Use
February 9, 2015 7:01 AM EST
Jefferies analyst Thomas Wei reiterated a Buy rating and $53 price target on Seattle Genetics (NASDAQ: SGEN) saying a cost-effectiveness ...
Pfizer should look at Seattle Genetics (NASDAQ: SGEN ) , a major developer of antibody-drug conjugates, or ADCs, commonly known as "cancer smart bombs." ADCs seek out and attach themselves to cancerous cells and then inject them with cytotoxic agents. This "targeted chemotherapy" spares healthy cells, which traditional chemotherapy usually wipes out. Although Seattle Genetics wouldn't move the needle in a huge way for Pfizer, a bolt-on acquisition could give a boost to Pfizer's oncology business.
Seattle Genetics has one approved ADC, Adcetris, indicated for two types of lymphoma. The company holds commercialization rights for Adcetris in the U.S. and Canada, while Takeda Pharmaceutical holds the marketing rights worldwide. Sales of Adcetris in the U.S. and Canada rose 24% year over year to $131.7 million during the first nine months of fiscal 2014, accounting for 61% of revenue.
There was recent concern that two recently approved immunotherapies -- Merck's Keytruda and Bristol-Myers Squibb's Opdivo -- could cause trouble for Seattle Genetics. Both drugs, which target the PD-1 pathway, have been effective at treating Hodgkin's lymphoma, or HL, after patients were first treated with Adcetris and showed disease progression. However, Bristol-Myers and Seattle Genetics are now testing Adcetris with Opdivo in clinical trials for blood disorders, including relapsed/refractory HL, so PD-1 inhibitors could complement, instead of compete against, Adcetris.
Seattle Genetics already collaborates with Pfizer on Anti-5T4, an ADC that's being tested in phase 1 trials on solid tumors. (go to the article for the whole story)
iRobot CFO Alison Dean also recently gave new perspective on how the company is investing for the future, detailing tens of millions of dollars spent each year on not just improving its existing moneymakers, but also advancing key technologies such as low-cost manipulation, video navigation, and even leveraging the cloud for resource intensive tasks such as object detection, large map storage, and communication between devices.
Naturally, I'll be listening closely to iRobot's Thursday morning conference call to see whether management is willing to elaborate on Angle's comment. But as it stands, I'm simply not convinced that iRobot's report today is as bad as the market seems to indicate.
Even so, the midpoint of both ranges sits below analysts' expectations for 2015 revenue and earnings of $643.1 million and $1.44 per share, respectively.
Unfortunately -- and despite the return to growth in Defense & Security -- iRobot expects Home Robot revenue to still represent 90% of 2015 revenue as growth decelerates to a range of 11% to 13%. Angle explained though it expects Home Robot sales in the U.S. to enjoy continued momentum with growth in the mid-teens, international sales "will be tempered by macros and currency devaluations."
Next, iRobot's Remote Presence business will focus primarily on improving the scalability of its solutions, while holding revenue relatively flat on a year-over-year basis at just $3 million.
Teasing new products We should also keep in mind that iRobot has demonstrated a knack for favoring caution, typically underpromising and overdelivering on its full-year guidance. There's no guarantee it's doing the same this time around. But as I noted on Tuesday, you might recall that iRobot stock initially plunged in after-hours trading after last year's fourth-quarter report, when the company provided weaker-than-expected 2014 guidance, only to pop more than 12% the following day, after management offered its encouraging perspective for the future during that morning's conference call.
Incidentally, Angle offered one such tantalizing hint at what's to come in iRobot's press release today, saying, "2015 will be an important year for iRobot as we begin to roll out and monetize investments we have been making in crucial robotic technology."
From Motley Fool:
iRobot Corporation (NASDAQ: IRBT ) just released reasonably solid fourth-quarter results. But if iRobot stock's 8% after-hours drop is any indication, the market isn't happy. So what happened?
On one hand, quarterly revenue climbed 20.7% year over year to $159.3 million. That's within iRobot's guidance range, but below Wall Street's optimistic expectations for sales of $164 million. Net income, on the other hand, nearly tripled to $0.31 per share, which is both at the high end of iRobot's expected range and above analysts' expectations for earnings of $0.30 per share.
"All three of our businesses met our expectations and made significant progress against their strategic plans," said iRobot CEO Colin Angle, "setting us up well for 2015."
iRobot enjoyed solid 19% year-over-year growth in overall Home iRobot sales, including an increase of over 20% domestically and 17% overseas. Meanwhile, though iRobot's press release didn't contain specifics, it did say the Remote Presence business "continued to ramp sales" of RP-VITA telemedicine robots for use in hospitals, and it sold Ava 500 Video Collaboration robots to "several" Fortune 500 companies.
Finally, iRobot says its Defense & Security business "delivered results consistent with expectations, exited 2014 with a solid backlog, and is positioned for healthy growth in 2015." For perspective, this means iRobot's D&S business is poised for its first year-over-year sales increase since 2011.
On guidance Speaking of which, for the current quarter iRobot expects revenue of $114 million to $117 million, and earnings per share of $0.08 to $0.10. Both ranges are well below analysts' expectations for sales and earnings of $133.8 million and $0.27 per share, respectively.
To its credit, iRobot's full-year outlook at least partially narrows that gap; iRobot expects 2015 revenue of $625 to $635 million, representing 12% to 14% growth over 2014, and earnings per share between $1.25 and $1.45. Even so, the midpo
On Feb. 5, 2014, IRBT dropped 4.8% in after-hours action after beating on Q4 EPS, meeting on revenue, and setting mixed guidance. The stock reversed sharply the following day, ending the Feb. 6 regular session up 12.3%.
From Daily Mail (UK) :
Witty said GSK is already gaining market share among new respiratory patients in Japan and the United States, where 15-year-old Advair and new lung drugs Breo and Anoro are available.
"I am not saying to you on this call (that) I hope to see market share increase for respiratory, I am telling you the market shares have begun to go up in the last few weeks," Witty told reporters
Fourth-quarter revenue for Breo, a successor to Advair, was 38 million pounds, exceeding the average analyst estimate by 35 percent. GSK also sees a stronger performance in the second half of the year.
From Insider Monkey:Finally, Iridian Asset Management also revealed an increase in its stake in Theravance Inc (NASDAQ:THRX), which now amounts to 9.4% of the company’s outstanding stock. In addition to the Westport, Connecticut-based investment firm, a numerous financial institutions boast this stock amongst their holdings. According to our records, Seth Klarman’s Baupost Group holds Theravance amongst its top 5 picks, with a position amounting to 19.8 million shares. This major hedge has been betting on the company for some time now, as revealed by its 13F filing for the fourth quarter of 2013. In addition to managing the royalty revenues it receives, Theravance Inc (NASDAQ:THRX) operates in the biotechnology industry and specializes in the development of respiratory products. Considering the company’s share price dropped around 58% in 2014, Iridian Asset Management might have considered this as a good opportunity to invest in an undervalued stock.
Hi lottaluckeh, that's indeed a good sign. A whopping 32% of the THRX's float is sold short, when things turn that will be rocket fuel!
Thanks! Happy New Year and Happy Investing! One of these days we are going to wake up to an announcement of a buyout.
ANTH chart shows a bullish double bottom W formatiom, the high volume breakout may signal a much higher stock price, IMO!
Anthera jumps as interest in lupus med builds
Jan 5 2015, 12:36 ET | About: Anthera Pharmaceutical... (ANTH) | By: Douglas W. House, SA News Editor [Contact this editor with comments or a news tip]
Thinly-traded nano cap Anthera Pharmaceuticals (ANTH +32.6%) jumps on a bullish 16x surge in volume. The company has a symposium on systemic lupus erythematosus scheduled for next week in San Francisco. The company's candidate for the treatment of lupus is A-623 (blisibimod), a selective peptibody antagonist of the BAFF cytokine.
On December 15, the company signed a license agreement with Tokyo-based Zenyaku Kogyo Ltd. for the development and commercialization of subcutaneous blisibimod in Japan and potentially other Asian countries.