Seattle Genetics drops after providing no ADCETRIS sales guidance

Seattle Genetics (SGEN) reported Q4 EPS of (24c), compared with analysts' consensus estimate of (31c). The company's revenue also came in higher than expected. Seattle Genetics added that it expects its revenue from collaboration and licenses in 2012 to be $55M-$65M. Over the next year, the company expects to initiate multiple Phase III trials of its ADCETRIS drug for various indications, including CTCL and Hodgkin lymphoma. However, the company declined to provide guidance for ADCETRIS sales, saying on its conference call that it does not have enough experience with the market. Moreover, in a note to investors, Leerink Swann lowered its 2012-2014 U.S. ADCETRIS sales estimates, as the firm believes that the drug's uptake will be slower than it had previously expected. Seattle Genetics' guidance for an increase in gross-to-net discounts for the drug also was a factor in the firm's decision to reduce its sales estimates. However, Leerink continues to have a positive overall outlook on the company and maintains an Outperform rating on the shares. In early trading, Seattle Genetics fell 59c, or 3.11%, to $18.37.