Shares of Seattle Genetics, Inc. (NASDAQ:SGEN) are tumbling nearly 10% in Monday’s trading session, after the drug maker announced topline data from its ECHELON-1 Phase 3 study evaluating 1,334 patients with previously untreated patients with classical Hodgkin’s lymphoma. The reason? The median progression-free survival (mPFS) benefit was not significant and modest overall response (OS) may temper enthusiasm.
J.P. Morgan analyst Cory Kasimov commented, “While these results don’t necessarily have the “wow factor” and statistical details (confidence intervals) will be important to see (may have to wait for ASH in Dec), our recent KOL conversations lead us to believe that the data will be enough to drive significant uptake in this setting (strong desire to eliminate the use of bleomycin in these patients that are typically younger). The outstanding question at this point remains valuation; and with the unfortunate timing of the announcement to discontinue the SGN-CD33A Phase 3 CASCADE trial in AML last week, we would not be surprised if the reaction to this event remains somewhat muted.”
Kasimov reiterates a Neutral rating on shares of Seattle Genetics while no price target was provided.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Cory Kasimov has a yearly average return of 1.6% and a 41.5% success rate. Kasimov is ranked #1888 out of 4592 analysts.
Out of the 10 analysts polled by TipRanks in the past 3 months, 4 rate Seattle Genetics stock a Buy, while 6 rate the recommend to Hold. With a return potential of nearly 8%, the stock’s consensus target price stands at $58.86.