UPDATE: Goldman Sachs Sees 27% Downside in Seattle Genetics (SGEN), Initiates Coverage With Sell Rating

(Updated - November 18, 2015 9:00 AM EST)

Goldman Sachs initiated coverage on Seattle Genetics (NASDAQ: SGEN) with a Sell rating and a price target of $33, suggesting 27% downside. Analyst Salveen Richter thinks Adcetris is fully valued and he sees limited catalysts on the horizon

Richter explained, "We are Sell-rated as we believe 1) upside for commercial drug Adcetris through label expansion (and an optimistic view of future competition) is already well-captured in the share price, 2) major catalysts remain far on the horizon, including Phase III readouts of ALCANZA for relapsed cutaneous T cell lymphoma, CTCL (H2/16, $83mn peak U.S. sales), frontline Hodgkin lymphoma, HL (2017/2018, $359mn peak U.S. sales), and mature T cell lymphoma, MTCL (2017/2018, $243mn peak U.S. sales), and 3) lack of clarity on the early stage pipeline, with two lead blood cancer drugs in competitive (SGN-CD19 in B cell malignancies) or historically difficult to address diseases (SGN-CD33 in acute myeloid leukemia)."

The analyst continued, "In addition, near term consensus estimates likely reflect some off-label use in CTCL, MTCL and diffuse large B cell lymphoma (Phase II testing), based on Adcetris’ inclusion in cancer treatment compendia as recommended therapy for these diseases."

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 $45.28 yesterday.

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