Seattle Genetics (SGEN) PT Lowered to $60 at Credit Suisse Given Increased Risk to AML Programs Following Clinical Hold

Credit Suisse analyst Kennen MacKay lowered his price target on Neutral-rated Seattle Genetics (NASDAQ: SGEN) to $60.00 (from $70.00) after the company announced several clinical holds imposed by the FDA upon SGN-CD33A ph1 trials driven by cases of hepatic venoocclusive disease (HVOD).

MacKay said the holds come as a surprise, given: 1) SGNCD33A was designed to address the antibody-drug conjugate (ADC) linker technology pitfalls of its predecessor Mylotarg, thought to be the cause of Mylotarg-associated HVOD, and 2) prior to this report no HVOD concerns had been observed in early stage SGN-CD33A testing.

"Given these dynamics, we lower our PoS for SGN-CD33A in frontline older / unfit AML to 30% (from 70% previously) and to 15% in frontline younger / fit AML (from 30% previously), resulting in our ($10) TP reduction to $60 (from $70 previously), and remain Neutral-rated," the analyst commented.

For an analyst ratings summary and ratings history on Seattle Genetics click here. For more ratings news on Seattle Genetics click here.

Shares of Seattle Genetics closed at $61.86 yesterday.

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