...what are we to make of it? (Sounds to me that the Bakers have substantially tightened their control of the company with this. To wit: Don't mess with us or you'll have to help us sell our stock. Something like that?)
"Under the Registration Rights Agreement, we [SGEN] agreed that, if at any time and from time to time after December 10, 2015, the Baker Entities demand that we register their shares of our common stock (“Common Stock”) for resale under the Securities Act of 1933, as amended, we would be obligated to effect such registration. Our registration obligations under the Registration Rights Agreement cover all shares of Common Stock now held or hereafter acquired by the Baker Entities (including shares acquired in the offering reported under Item 8.01 below), will continue in effect for up to ten years, and include our obligation to facilitate certain underwritten public offerings of our Common Stock by the Baker Entities in the future."
And something else has been occurring to me: Having another $400 million in the bank is not likely to make SGEN any less attractive to potential buyers, if you know what I mean.
I did notice that reference regarding potential acquisitions, though I couldn't tell if it was boilerplate language or something meaningful. Fwiw, a few years ago, when asked during a conference call or investor briefing about the chance of being bought out, Siegall said the board would meet its fiduciary obligations by giving due consideration to any offer, but his preference would be to remain independent as he built a major player in the space. If that's the case, we better all pull up soft chairs and get comfortable, because we're still in for a loooong ride.
Scr, the street is rarely rational about such things and the big boys love to take advantage of the newbies. Down almost 3 percent in the immediate aftermath of 8-10 percent dilution is a pretty acceptable response, imo. I'm betting on a significant bounce in coming days.
You're probably right. The 8K just filed notes that the Bakers and other insiders already own 61.2 percent of the float and, consequently, have complete control of the company. If I recall correctly, the last time this happened, the Bakers bought precisely enough of the new shares to maintain their personal percentage of ownership.
Agreed. Links generally don't work here anymore, but if anyone wants to see the piece, just google Baker Brothers and Motley Fool.
So, based on all these stream-of-consciousness posts and make-believe stock trades, I guess he's having another nervous breakdown. Poor fellow.
:) Well, we're all in this together, myboy. After a decade or so in SGEN large, I wouldn't mind cashing out one of these days, but certainly not now, with so much promise seemingly just over the horizon.
mybodyshadow: It's a mistake to take seriously anything fstout says. He's just a garden variety (though particularly ignorant) troll who's been intermittently around here for a decade, using a variety of aliases that include: fstout, rickarooski, mauihope, smelky, and god knows how many others. A very sick puppy best left untouched.
Nice try, but ATPL did not assert that SGEN trading under fair value. He responded to and smothered YOUR challenge about whether pipeline was included in the analyst's estimates (it clearly was not, so you are wrong there) and he challenged YOUR assertion that SGEN "is trading on takeover value alone," which it is not, given its pipeline, so you are wrong there, too.
Agreed, for sure. That was one weird analysis: Everything is great and looking even better, so...sell now. Possibly part of the basis for today's redness. We've seen this sort of thing before after really good news, and it never lasts long.
Piper Jaffrey Analyst and resident genuis: Nothing but good news, so...sell.
Sell Seattle Genetics' Latest Good News: Piper Jaffray
Last update: 18/08/2015 10:27:34 am
In a report published Tuesday, Piper Jaffray analyst Edward A. Tenthoff maintained an Underweight rating and price target of $30 on Seattle Genetics, Inc. (NASDAQ: SGEN). The company's ADCETRIS candidate has received approval for use in post-transplant consolidation Hodgkin's Lymphoma (HL). According to the Piper Jaffray report, "The approval is based on positive data from the Phase III AETHERA trial. As a positive surprise, the FDA also converted the accelerated approval for ADCETRIS in relapsed HL to standard approval." Although the approval is good news, the analyst mentioned that this is already factored into the $220 sales estimate for 2015 and $250 million sales estimate for 2016. The company has an expanding pipeline of partnered and wholly-owned ADCs.
"ECHELON 1 in front-line HL should complete enrollment this year, and ECHELON 2 in front-line mature T-cell lymphoma is expected to complete enrollment in 2016," Tenthoff said. "The Phase III ALCANZA trial in cutaneous T-cell lymphoma (cTCL) is scheduled to complete enrollment this year."
Seattle Genetics also intends to run two combo studies for Opdivo and ADCETRIS in relapsed CD30+nHL and relapsed HL, along with Phase II trial of Rituxan and bendamustine, with and without ADCETRIS, in CD30+ relapsed/refractory DLBCL. The company has also initiated a trial for the use of ADCETRIS in the treatment of lupus. According to the analyst, "SGEN has seven wholly-owned clinical stage ADC candidates in the clinic including SEA-CD40, a novel immuno-oncology drug." Seattle Genetics is scheduled to meet with regulators in order to identify the way forward for the Phase 1b trial of SGN-CD33A in AML and Phase II trial of SGN-CD19A in NHL.
"Phase I studies examining SGN-CD70A in renal cell carcinoma and NHL and SGN-LIV1A in breastare also underway...."
Seattle Genetics Announces FDA Regular Approval of ADCETRIS® (Brentuximab Vedotin) for Classical Hodgkin Lymphoma Patients at High Risk of Relapse or Progression as Post-Autologous Hematopoietic Stem Cell Transplantation Consolidation
-FDA Approval Based on the Phase 3 AETHERA Clinical Trial Results-
-AETHERA Trial Also Converts Prior Accelerated Approval to Regular Approval in Treatment of Classical Hodgkin Lymphoma Patients who Fail Autologous Hematopoietic Transplantation or who Fail at Least Two Prior Multi-Agent Chemotherapy Regimens and are Not Autologous Hematopoietic Transplantation Candidates-
-Label Expansion Represents Third Indication for ADCETRIS in the U.S. and the First of Four Phase 3 Clinical Trials Intended to Broaden the Global Use of ADCETRIS in CD30-Expressing Lymphomas-
-ADCETRIS is the Only FDA-Approved Therapy to Prolong Progression-Free Survival Following Autologous Hematopoietic Transplantation in Classical Hodgkin Lymphoma-
I hear ya. If it helps you sleep well this weekend, I just went back over the transcript of the last conference call. Here's Siegall on the matter: "Looking ahead, in the near term, we anticipate an approval decision from the FDA on our AETHERA Supplemental BLA by the PDUFA date of August 18. A positive outcome would result in a third indication for ADCETRIS and represent a key step in our goal of expanding ADCETRIS beyond relapsed Hodgkin lymphoma and systemic anaplastic large cell lymphoma."
Keep in mind, this was just 19 days before the PDUFA date. One has to believe that if the company sensed any problem, he would not have chosen those words.
Though I always harbor some concern, I can't say that I'm overly concerned about this. I can't speak to the science, although approval certainly seemed like a lock, but here's my theory about what might be happening behind the scenes:
If I recall correctly, these kinds of approvals are not publicized by the FDA; rather, they are communicated directly from the FDA to the company. If, as I suspect, that approval is communicated to the company after the market closes on any given day, a PR-savvy company (which, admittedly SGEN not always has been) would announce the news until just before the market opens on the next market day. This gives the announcement more affirmative market power than letting it lose steam over night - and certainly more market power than letting it lose steam over a weekend.
Bottom line: Though my speculation about today was not correct, I'm still guessing that we hear positive news early Monday, early Tuesday or, worst case, early Wednesday. (FWIW, Leerink Swann raised its SGEN target from $53 to $56 today.)