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RBC Doubles '11 Sales Estimate on Seattle Genetic’s (SGEN) Adcetris, Cites Recent Survey

September 19, 2011 3:39 PM EDT
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Price: $228.74 --0%

Rating Summary:
    10 Buy, 18 Hold, 5 Sell

Rating Trend: = Flat

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    Up: 0 | Down: 0 | New: 0
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Shares of Seattle Genetics (Nasdaq: SGEN) may be catching a bid Monday on the heels of a bullish research note from RBC's Jason Kantor. The stock last traded at $19.18, up nearly 5 percent from Friday's closing price.

Kantor notes the recent "rapid early adoption" of the company's Adcetris shows him sales estimates for both 2011 and 2012 may be too low. Kantor said his assumption is based on an RBC survey of 100 hematologists which suggests about 50 percent penetration in Hodgkin's lymphoma, 74 percent penetration in anaplastic large cell lymphoma, and 16 percent from usage an off label product.

The analyst doubled his 2011 sales forecast for Adcetris from $9 million to $18 million and increased his 2012 estimate by about 18 percent from $114 million to $135 million.

Kantor maintains an Outperform rating and $20 price target on shares of Seattle Genetics.

The RBC note comes as shares of Seattle Genetics have been trading down from the low $20 range since mid-July when an FDA panel recommended an accelerated approval of Adcetris.


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