Seattle Genetics Reports First Quarter 2013 Financial Results

BOTHELL, Wash.--(BUSINESS WIRE)--

Seattle Genetics, Inc. (SGEN) today reported financial results for the first quarter ended March 31, 2013. The company also highlighted ADCETRIS (brentuximab vedotin) commercialization and clinical development activities, progress with its antibody-drug conjugate (ADC) pipeline and technology and upcoming milestones.

In 2013 we have continued to deliver on the ambitious goals we have set for ADCETRIS, our pipeline and our ADC technology, said Clay B. Siegall, Ph.D., President and Chief Executive Officer at Seattle Genetics. We and our collaborator, Millennium: The Takeda Oncology Company, are bringing ADCETRIS to patients in need through approvals to date in the United States, Canada, European Union and Switzerland. In addition, across both corporate and investigator-sponsored studies, there are currently more than 20 ongoing ADCETRIS clinical trials, including four phase 3 studies. Seattle Genetics is also advancing several additional ADCs, including two programs planned for phase 1 trial initiations during 2013, while our collaborators continue to advance more than a dozen ADCs in clinical development.

Recent ADCETRIS Highlights

Other Recent Highlights

Upcoming Milestones

First Quarter Financial Results

Total revenues in the first quarter of 2013 were $57.3 million, compared to $48.2 million in the first quarter of 2012. First quarter 2013 revenues include ADCETRIS net product sales of $33.9 million and ADCETRIS royalty revenues of $2.4 million from international sales of ADCETRIS by Takeda/Millennium. Revenues also reflect amounts earned under the companys ADCETRIS and ADC collaborations totaling $21.0 million in the first quarter of 2013.

Research and development expenses for the first quarter of 2013 were $47.7 million, compared to $38.5 million for the first quarter of 2012. This planned increase in 2013 was primarily driven by ADCETRIS expenses, including clinical trials to explore potential additional uses of ADCETRIS and drug supply to Takeda/Millennium under the collaboration. Research and development expenses also include increased investment in the companys ADC pipeline programs. Selling, general and administrative expenses for the first quarter of 2013 were $21.9 million, compared to $22.2 million for the first quarter of 2012.

Under the ADCETRIS collaboration with Takeda/Millennium, development costs incurred by Seattle Genetics are included in research and development expense. Joint development costs are co-funded by Takeda/Millennium on a 50:50 basis. Net reimbursement funding received from Takeda/Millennium is recognized as revenue over the development period of the collaboration along with other development payments received, including the upfront payment and development milestone payments. Seattle Genetics co-funds development activities performed by Takeda/Millennium under the collaboration, which reduces the amount of reimbursement funding received from Takeda/Millennium.

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Seattle Genetics Reports First Quarter 2013 Financial Results