Seagen reported mixed third quarter earnings, with revenue outperforming expectations on strong product sales growth as earnings fell short of estimates.
The cancer-focused biotechnology company which is being acquired by Pfizer reported revenue of $649 million for 3Q.
This was an increase over the year-ago quarter’s revenues of $510 million and topped the consensus analyst estimate of $640.2 million.
Seagen’s 3Q sales were made up of $571 in product sales, $64 million in royalty revenues, and $14 million in collaboration and license revenues.
Product sales and royalty revenues increased 33% and 45% respectively over the year-ago quarter, while collaboration and license revenue was down 63% attributed in part to an upfront payment in the prior period.
The growth in product sales was driven by an 89% increase in PADCEV sales, which was launched during the quarter in the US in combination with Keytruda as first-line treatment for patients with locally advanced or metastatic urothelial cancer who are not eligible to receive cisplatin-containing chemotherapy, and a 13% year-over-year acceleration in ADCETRIS sales, a medication being used in advanced Hodgkin lymphoma.
Seagen’s loss per share, however, was worse than expected. It reported a loss per share of $1.15, up from a loss per share of $1.03 in the year-ago quarter and greater than the Street estimate of a $0.71 loss per share.
"Seagen continues to build momentum in 2023 and delivered strong performance, marked by record quarterly net product sales, with significant year-over-year growth of 33%,” Seagen CEO David Epstein said in a statement.
“We remain very excited about the pending acquisition of Seagen by Pfizer as we look to build a world-class oncology organization which will broaden patient reach and accelerate development of our innovative pipeline.”
Pending its acquisition by Pfizer, which is expected to close in late 2023 or early 2024, the company noted it is no longer providing 2023 guidance.
Seagen shares traded modestly higher following its results, up 0.3% at US$213.51.
Contact the author at emily.jarvie@proactiveinvestors.com
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