Needham & Company Downgrades Seattle Genetics (SGEN) to Hold
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Price: $35.35 +0.57%
Rating Summary:
5 Buy, 5 Hold, 10 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 0
Rating Summary:
5 Buy, 5 Hold, 10 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 0
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Needham & Company downgraded Seattle Genetics (NASDAQ: SGEN) from Buy to Hold on valuation following Q4 results.
"Seattle Genetics reported 4Q12 financial results yesterday. U.S. Adcetris sales of $35.4M were above our $34.0M and consensus $33.2M estimates. Management guided for $130-140M in 2013 Adcetris sales, somewhat less than expectations given prior guidance for flat on-label use from 2012 through 2013. Guidance reflects management expectations for minimal off-label use in 2013."
"The company is working aggressively to expand the existing narrow label in ALCL and HL. Strong Phase 1 efficacy data in front-line ALCL and HL were presented in 2012 and Phase 3 trials are now under way in both indications (ECHELON 1 and 2). These trials will take several years to complete, however, and we do not expect off-label use to substantially boost sales in the interim. The stock has performed well through 2012 into 2013, now reaching ~$3.2B EV. Although we believe there is minimal downside risk to the stock, there may also be little upside going forward in 2013. We are downgrading to HOLD (was BUY). Our long-term view towards Adcetris remains favorable."
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 $29.24 yesterday, with a 52 week range of $17.09-$30.85.
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"Seattle Genetics reported 4Q12 financial results yesterday. U.S. Adcetris sales of $35.4M were above our $34.0M and consensus $33.2M estimates. Management guided for $130-140M in 2013 Adcetris sales, somewhat less than expectations given prior guidance for flat on-label use from 2012 through 2013. Guidance reflects management expectations for minimal off-label use in 2013."
"The company is working aggressively to expand the existing narrow label in ALCL and HL. Strong Phase 1 efficacy data in front-line ALCL and HL were presented in 2012 and Phase 3 trials are now under way in both indications (ECHELON 1 and 2). These trials will take several years to complete, however, and we do not expect off-label use to substantially boost sales in the interim. The stock has performed well through 2012 into 2013, now reaching ~$3.2B EV. Although we believe there is minimal downside risk to the stock, there may also be little upside going forward in 2013. We are downgrading to HOLD (was BUY). Our long-term view towards Adcetris remains favorable."
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 $29.24 yesterday, with a 52 week range of $17.09-$30.85.
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