Seattle Genetics, Inc.(SGEN) reported second quarter 2013 net loss per share of 6 cents, narrower than the Zacks Consensus Estimate of a loss of 18 cents and the year-ago loss of 15 cents per share.

Second quarter revenues were $73.6 million, compared with $48.8 million in the year-ago quarter. Revenues surpassed the Zacks Consensus Estimate of $57 million.

Net revenues for the second quarter included Adcetris revenues (up 3% to $35.7 million), collaboration and license agreement revenues (up 165.9% to $34.3 million) and royalty revenues (up 185.9% to $3.5 million).

Research and development expenses increased 22.3% year over year to $52.3 million driven by Adcetris development activities and higher investment in other antibody-drug conjugate (ADC) programs. Selling, general and administrative (SG&A) expenses rose by 18.5% year over year to $23.5 million. SG&A expenses increased due to Adcetris-related sales and marketing activities.

Pipeline Update

Seattle Genetics is working on expanding Adcetris' label. In May 2013, Seattle Genetics submitted a supplemental biologics license application (sBLA) for the use of Adcetris in the retreatment of patients and for extended duration of use beyond 16 cycles of therapy. The U.S. Food and Drug Administration (FDA) did not approve Adcetris in this retreatment setting. Seattle Genetics will further interact with the FDA regarding the new data required for approval.The FDA has asked to remove the limitation of 16-cycles timeframe from the label.

Adcetris is approved for the treatment of relapsed or refractory Hodgkin lymphoma (HL) and systemic anaplastic large cell lymphoma (sALCL).

Meanwhile, Seattle Genetics discontinued the development of ASG-5ME (phase I) for prostate, gastric and pancreatic cancer.

Seattle Genetics has collaborations with various companies for the development of ADCs. ADC collaborators are progressing on various programs.

Seattle Genetics and Bayer (BAYRY) entered into an alliance in Jun 2013. This deal will allow Bayer to gain worldwide rights to Seattle Genetics' auristatin-based ADC technology along with antibodies to several oncology targets.

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Narrower-than-Expected Loss at Seattle Genetics - Analyst Blog

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