Jefferies Ups PT on Seattle Genetics (SGEN) to $25 Following Adcetris Call; Adjusts Numbers, Outlook
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Price: $228.74 --0%
Rating Summary:
10 Buy, 18 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
10 Buy, 18 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Jefferies boosted its price target on Seattle Genetics (Nasdaq: SGEN) by 4.2 percent from $24 to $25, while keeping its Buy rating on the shares.
The firm said management updated on Adcetris launch plans, which included a price per cycle of $13,500, richer than Jefferies was expecting. Detail from the call:
"On today’s conference call, management announced that Adcetris, dosed at 1.8mg/kg by IV infusion over 30 minutes every 3 weeks, is priced at a wholesale acquisition cost of $4,500 per vial. In the clinical trials, a median of 3 vials were required per dose, which equates to $13,500 per cycle. A median of 7-9 cycles and a mean of 8-10 cycles were administered in the Phase 3 studies with 20 percent of patients reaching the maximum allowed 16 cycles. The company also reiterated that the expected gross-to-net sales adjustment is likely to be less than 15%. The net effective price for Adcetris, therefore, will be $11,500 per cycle, or 15% higher than our previous net price assumption of $9,975. We also learned on the call that pricing of Adcetris under the special access program in Canada has been set in line with the U.S. price, higher than our current estimate for international pricing of Adcetris, which assumes a 25% discount to the US price."
Jefferies is adjusting its model to reflect an earlier launch date than 2013, as well as "increased penetration of the transplant ineligible HL population to reflect the broader than expected label." It's also adjusting duration assumptions to 8 cycles in HL and 10 in ALCL.
Changes to estimates include: narrowed fourth-quarter loss from 45 to 44 cents per share, fiscal 2011 loss cut from $1.69 to $1.68 per share. Jefferies increased it's fiscal 2012 loss per share outlook from $1.34 to $1.54.
Click here for more analyst color, or here for a ratings history on Seattle Genetics.
Seattke Genetics' shares are trading 2.3 percent lower Tuesday.
The firm said management updated on Adcetris launch plans, which included a price per cycle of $13,500, richer than Jefferies was expecting. Detail from the call:
"On today’s conference call, management announced that Adcetris, dosed at 1.8mg/kg by IV infusion over 30 minutes every 3 weeks, is priced at a wholesale acquisition cost of $4,500 per vial. In the clinical trials, a median of 3 vials were required per dose, which equates to $13,500 per cycle. A median of 7-9 cycles and a mean of 8-10 cycles were administered in the Phase 3 studies with 20 percent of patients reaching the maximum allowed 16 cycles. The company also reiterated that the expected gross-to-net sales adjustment is likely to be less than 15%. The net effective price for Adcetris, therefore, will be $11,500 per cycle, or 15% higher than our previous net price assumption of $9,975. We also learned on the call that pricing of Adcetris under the special access program in Canada has been set in line with the U.S. price, higher than our current estimate for international pricing of Adcetris, which assumes a 25% discount to the US price."
Jefferies is adjusting its model to reflect an earlier launch date than 2013, as well as "increased penetration of the transplant ineligible HL population to reflect the broader than expected label." It's also adjusting duration assumptions to 8 cycles in HL and 10 in ALCL.
Changes to estimates include: narrowed fourth-quarter loss from 45 to 44 cents per share, fiscal 2011 loss cut from $1.69 to $1.68 per share. Jefferies increased it's fiscal 2012 loss per share outlook from $1.34 to $1.54.
Click here for more analyst color, or here for a ratings history on Seattle Genetics.
Seattke Genetics' shares are trading 2.3 percent lower Tuesday.
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