Needham & Company Tells Seattle Genetics (SGEN) Investors Not to Overreact About Vadastuximab Clinical Hold

Needham & Company analyst Chad Messer maintained a Buy rating and $72 price target on Seattle Genetics (NASDAQ: SGEN) despite today's sell-off announced this morning that certain Phase I studies of vadastuximab in acute myeloid leukemia (AML) are being placed on clinical hold by the FDA.

Messer commented, "The hold stems from concerns for potential liver toxicity in patients that receive stem cell transplants before or after treatment. While we expect shares to trade down this morning, we caution investors not to overreact as liver toxicity is a known side effect of stem cell transplantation. Seattle is working with the FDA to determine if there is a link between vadastuximab and observed liver toxicity and to find appropriate protocol amendment to allow the trials to continue. Importantly, the pivotal CASCADE study of vadastuximab in elderly AML patients is not affected nor is a Phase I/II study in myelodysplastic syndrome (MDS) as these patient population do not receive stem cell transplants. We reiterate our Buy rating on SGEN shares ahead of pivotal ECHELON-1 data by YE:17."

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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