Seattle Genetics: Good time to buy based on Adcetris label expansion

  • Seattle Genetics recently reported halt of its trials for vadastuximab.
  • The company awaits some key FDA decisions for expanding the addressable market for Adcetris.
  • The stock is attractively valued for medium to long term investment at current price level.

Seattle Genetics (SGEN) is a midsized company with outsized dreams. Those dreams, thus far, were mostly centered around revenues it made from its one big show - Adcetris - in one small market, 2nd line classical Hodgkins lymphoma, and in another even smaller market, 2nd line Systemic anaplastic large cell lymphoma (sALCL), a very rare type of non-Hodgkin lymphoma. The company tried to expand the scope of their ADC (antibody-drug conjugate) platform but there were failures, which, in effect, took it back to that one drug in those two small markets.

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