H.C. Wainwright Maintains Buy On Seattle Genetics On The Back Of 3Q Growth


In a research note released Friday, H.C. Wainwright analyst Andrew Fein maintained a Buy rating on Seattle Genetics (NASDAQ:SGEN) with a $65 price target, as the company reported an 11% QoQ growth in quarterly revenue and directed investor attention to several catalysts in the near horizon.

Fein wrote, “The company expects a strong presence at ASH (6-9 Dec, San Francisco), with 18 accepted abstracts and 8 oral presentations. In our view, the key presentations in order of importance will be: (a) full data from the AETHERA study, which would frame a potential sBLA in 1H15 (Adcetris as post-ASCT consolidation tx; see AETHERA section below); (b) dose escalation data from SGNCD33A in AML (company already planning a Phase 1b combo with chemo); and (c) full Phase 1 data from SGN-CD19A in NHL and ALL (company also planning a Phase 2 combo study in relapsed DLBCL). Additionally to ASH, the next few months may bring clarity on the precise timeline of the ECHELON-1 study, with any potential amendment to the timeline and/or endpoint analysis being of material significance given the target indication of front line HL.”

The analyst continued, “Exiting 3Q, overall, while we applaud the positive quarterly growth in Adcetris revenue, and are encouraged by steady on-label sales and growth in off-label use (according to management on the call), we continue to focus our bullish SGEN thesis on the medium-to-long term value of the company’s proven ADC technology, consisting of value-driving label expansion for the maturing Adcetris, and also of emerging clinical programs with new targets, both in house and via partners.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Andrew Fein has a total average return of 8.7% and a 44.1% success rate. Fein has an 5.9% average return when recommending SGEN, and is ranked #805 out of 3371 analysts.

 

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