Seattle Genetics: Continued Quality And Breadth Of Data Should Yield Investor Re-Engagement, Says H.C. Wainwright


H.C. Wainwright analyst Andrew Fein reiterated a Buy rating on Seattle Genetics (NASDAQ:SGEN) with a $65 price target, as the company and partner Takeda reported phase 3 AETHERA clinical data from ADCETRIS(R) (Brentuximab Vedotin) in post-transplant hodgkin lymphoma patients at risk of relapse at ASH Annual Meeting.

Fein wrote, “At the ongoing ASH meeting in San Francisco, SGEN provided additional important details from the study on response magnitude and consistency, solidifying the PFS win: (a) median PFS was 43 months for Adcetris vs. 24 months for placebo; (b) the 2-year PFS rate was 63% for Adcetris vs. 51% for placebo; and (c) PFS benefit was consistent across all pre-specified subgroups. Although the OS data remain immature and not statistically significant, newly presented details about imbalances in post-progression treatment between the study arms reinforce the case that the OS endpoint for this study may well be compromised: post progression, only 16% of the Adcetris arm received Adcetris again, vs. 51% of the placebo arm.”

The analyst continued, “We believe that it is not completely unlikely that the OS endpoint may not meet statistical significance even in 2016 (analysis expected), however what matters is that we do know why this may likely be the case. Either way, we believe that the company will charge ahead with a sBLA submission for the AETHERA indication in the next few months, and may or may not find itself before an ODAC panel by mid-2015.”

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 9.9% and a 45.7% success rate. Fein has a 0.4% average return when recommending SGEN, and is ranked #660 out of 3401 analysts.

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