Seagen Inc. (Nasdaq:SGEN) reported financial results today for the first quarter ended March 31, 2022. The Company also highlighted PADCEV® (enfortumab vedotin-ejfv), TUKYSA® (tucatinib), ADCETRIS® (brentuximab vedotin) and TIVDAK® (tisotumab vedotin-tftv) commercial and development accomplishments, as well as progress across its deep and diverse oncology pipeline.
“Seagen delivered strong results for the first quarter of 2022 with net product sales increasing 27 percent over the first quarter of 2021, reflecting growth across our portfolio of four approved products,” said Clay Siegall, Ph.D., President and Chief Executive Officer of Seagen. “This month the European Commission approved PADCEV for previously treated metastatic urothelial cancer, further extending the reach of our innovative medicines for cancer patients with unmet medical needs. We look forward to presenting data from more than two dozen abstracts at the upcoming ASCO Annual Meeting, including two oral presentations demonstrating the survival advantage of ADCETRIS regimens in newly diagnosed patients with advanced Hodgkin lymphoma. Other upcoming milestones in 2022 include reporting results from the TUKYSA pivotal MOUNTAINEER clinical trial in metastatic HER2-positive colorectal cancer and Cohort K of the PADCEV EV-103 trial in newly diagnosed metastatic urothelial cancer. Seagen continues to be well-positioned with significant resources and an expanded geographic footprint to continue executing upon our strategy.”
APPROVED PRODUCTS HIGHLIGHTS
PADCEV
TUKYSA
ADCETRIS
TIVDAK
PIPELINE PROGRAMS
For additional information on Seagen’s pipeline, visit www.seagen.com/science/pipeline.
CORPORATE HIGHLIGHTS
FIRST QUARTER 2022 FINANCIAL RESULTS
Revenues: Total revenues for the first quarter and three months ended March 31, 2022 were $426.5 million, compared to $332.0 million for the same period in 2021. Revenues in the 2022 period reflected higher net product sales across the Company's commercial portfolio.
Revenues were composed of the following components:
|
Three months ended March 31, |
||||||
(dollars in millions) |
2022 |
2021 |
% Change |
||||
Total Net Product Sales |
$ |
383.1 |
$ |
302.6 |
27% |
||
ADCETRIS |
|
181.0 |
|
162.6 |
11% |
||
PADCEV |
|
100.2 |
|
69.8 |
44% |
||
TUKYSA |
|
90.5 |
|
70.3 |
29% |
||
TIVDAK |
|
11.4 |
|
— |
N/A |
||
Royalty Revenues |
|
28.2 |
|
27.2 |
4% |
||
Collaboration and License Agreement Revenues |
|
15.2 |
|
2.2 |
598% |
||
Note: Sum of product sales may not equal total net product sales due to rounding. |
Cost of Sales: Cost of sales for the first quarter of 2022 were $87.6 million, compared to $64.1 million for the same period in 2021. The increase was primarily related to the gross profit share owed to collaboration partners, which was $52.8 million in the first quarter of 2022, compared to $32.5 million for the same period in 2021. Cost of sales also reflects amortization of TUKYSA acquired in-process technology costs, third-party royalties owed for PADCEV and TUKYSA net product sales, and cost of products sold.
Research and Development (R&D) Expenses: R&D expenses for the first quarter of 2022 were $297.7 million, compared to $230.4 million for the same period in 2021. The increase in the period ended March 31, 2022 primarily reflected continued investment in clinical development of the Company's approved drugs and to advance its novel programs and technologies.
Selling, General and Administrative (SG&A) Expenses: SG&A expenses for the first quarter of 2022 were $174.2 million, compared to $159.8 million for the same period in 2021. The increase in 2022 primarily reflected investments to support ongoing European TUKYSA launches and the U.S. commercial launch of TIVDAK.
Non-cash, share-based compensation expense for the first quarter of 2022 was $43.9 million, compared to $38.2 million for the same period in 2021.
Net Loss: Net loss for the first quarter of 2022 was $136.5 million, or $0.74 per diluted share, compared to net loss in the first quarter of 2021 of $121.4 million, or $0.67 per diluted share.
Cash and Investments: As of March 31, 2022, Seagen had $2.0 billion in cash and investments.
2022 FINANCIAL OUTLOOK
Seagen anticipates 2022 revenues, operating expenses and other costs to be in the ranges shown in the table below, unchanged from the Company's previous financial guidance provided on February 9, 2022.
REVENUES |
|
Net Product Sales1 |
$1,480 million to $1,545 million |
ADCETRIS |
$730 million to $755 million |
PADCEV |
$435 million to $455 million |
TUKYSA |
$315 million to $335 million |
Royalty revenues |
$160 million to $170 million |
Collaboration and license agreement revenues |
$25 million to $30 million |
Total revenues1 |
$1,665 million to $1,745 million |
OPERATING EXPENSES AND OTHER COSTS |
|
Cost of Sales |
$380 million to $420 million |
R&D expenses |
$1,200 million to $1,300 million |
SG&A expenses |
$780 million to $860 million |
Non-cash costs2 (primarily attributable to share-based compensation) |
$280 million to $310 million |
1. |
TIVDAK sales guidance not provided and is excluded from product sales and total revenues guidance. |
|
2. |
Non-cash costs include share-based compensation, depreciation and amortization of intangible assets. |
Conference Call Details
Seagen management will host a conference call and webcast with supporting slides to discuss its first quarter 2022 financial results and provide an update on business activities. The event will be held today at 1:30 p.m. Pacific Time (PT); 4:30 p.m. Eastern Time (ET). The live event will be simultaneously webcast and available for replay from the Seagen website at investor.seagen.com. Investors may also participate in the conference call by calling 844-763-8274 (domestic) or 412-717-9224 (international). The conference ID is 10165175. Supporting slides are available on the Seagen website at investor.seagen.com under the Investors section. A webcast replay will be archived on the Company's website investor.seagen.com, under the Investors section.
About Seagen
Seagen Inc. is a global biotechnology company that discovers, develops and commercializes transformative cancer medicines to make a meaningful difference in people’s lives. Seagen is headquartered in the Seattle, Washington area, and has locations in California, Canada, Switzerland and the European Union. For more information on our marketed products and robust pipeline, visit www.seagen.com and follow @SeagenGlobal on Twitter.
Forward-Looking Statements
Certain of the statements made in this press release are forward-looking, such as those, among others, relating to the Company’s 2022 outlook, including anticipated 2022 revenues, costs and expenses; the Company’s potential to achieve the noted development and regulatory milestones in 2022 and in future periods; the Company’s pipeline; anticipated activities related to the Company’s planned and ongoing clinical trials; the potential for the Company’s clinical trials to support further development, regulatory submissions and potential marketing approvals in the U.S. and in other countries; the opportunities for, and the therapeutic and commercial potential of ADCETRIS, PADCEV, TUKYSA, TIVDAK, disitamab vedotin, the Company’s other product candidates and the products and product candidates of its licensees and collaborators; the potential to expand the availability of PADCEV to additional patients in Europe; the potential for data from the EV-103 trial and/or the MOUNTAINEER trial to support registration under the FDA’s accelerated approval pathway; the Company’s global expansion; potential future milestone payments and royalties under the Company’s collaborations; potential future developments in the referenced legal matters; as well as other statements that are not historical fact. Actual results or developments may differ materially from those projected or implied in these forward-looking statements. Factors that may cause such a difference include without limitation: the risks that the Company’s ADCETRIS, PADCEV, TUKYSA and TIVDAK net sales, revenues, expenses, costs, and other financial guidance may not be as expected; risks and uncertainties associated with maintaining or increasing sales of ADCETRIS, PADCEV, TUKYSA and TIVDAK due to competition, unexpected adverse events, regulatory action, reimbursement, market adoption by physicians, impacts associated with COVID-19 or other factors; the risk that the Company or its collaborators may be delayed or unsuccessful in planned clinical trial initiations, enrollment in and conduct of clinical trials, obtaining data from clinical trials, planned regulatory submissions, and regulatory approvals in the U.S. and in other countries in each case for a variety of reasons including the difficulty and uncertainty of pharmaceutical product development, negative or disappointing clinical trial results, unexpected adverse events or regulatory actions and the inherent uncertainty associated with the regulatory approval process; the possibility that the Company may encounter challenges in commercializing its therapeutic agents, including with respect to reimbursement, compliance, operational or other matters; the possibility of delays or setbacks in obtaining pricing and reimbursement approvals or otherwise commercializing PADCEV in Europe; risks relating to the Company’s collaboration agreements and its ability to achieve progress dependent milestones thereunder; the inherent uncertainties associated with legal actions; risks related to the duration and severity of the COVID-19 pandemic and resulting global economic, financial and healthcare system disruptions; and risks associated with the ongoing military conflict between Russia and Ukraine, related sanctions imposed against Russia, and related economic, financial and geopolitical disruptions. More information about the risks and uncertainties faced by the Company is contained under the caption “Risk Factors” included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 and the Company’s subsequent periodic reports filed with the Securities and Exchange Commission. Seagen disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise except as required by applicable law.
Seagen Inc. Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except per share amounts) |
|||||||
|
Three Months Ended March 31, |
||||||
|
2022 |
|
2021 |
||||
Revenues: |
|
|
|
||||
Net product sales |
$ |
383,086 |
|
|
$ |
302,588 |
|
Royalty revenues |
|
28,181 |
|
|
|
27,219 |
|
Collaboration and license agreement revenues |
|
15,193 |
|
|
|
2,176 |
|
Total revenues |
|
426,460 |
|
|
|
331,983 |
|
Costs and expenses: |
|
|
|
||||
Cost of sales |
|
87,626 |
|
|
|
64,135 |
|
Research and development |
|
297,659 |
|
|
|
230,426 |
|
Selling, general and administrative |
|
174,225 |
|
|
|
159,842 |
|
Total costs and expenses |
|
559,510 |
|
|
|
454,403 |
|
Loss from operations |
|
(133,050 |
) |
|
|
(122,420 |
) |
Investment and other (loss) income , net |
|
(2,190 |
) |
|
|
1,000 |
|
Loss before income taxes |
|
(135,240 |
) |
|
|
(121,420 |
) |
Provision for income taxes |
|
1,254 |
|
|
|
— |
|
Net loss |
$ |
(136,494 |
) |
|
$ |
(121,420 |
) |
Net loss per share - basic and diluted |
$ |
(0.74 |
) |
|
$ |
(0.67 |
) |
Shares used in computation of per share amounts - basic and diluted |
|
183,647 |
|
|
|
181,150 |
|
Seagen Inc. Condensed Consolidated Balance Sheets (Unaudited) (In thousands) |
|||||||
|
March 31, 2022 |
|
December 31, 2021 |
||||
Assets |
|
|
|
||||
Cash, cash equivalents and investments |
$ |
1,951,093 |
|
$ |
2,160,036 |
||
Other assets |
|
1,665,600 |
|
|
|
1,559,568 |
|
Total assets |
$ |
3,616,693 |
|
|
$ |
3,719,604 |
|
Liabilities and Stockholders’ Equity |
|
|
|
||||
Accounts payable and accrued liabilities |
$ |
531,294 |
|
|
$ |
568,854 |
|
Long-term liabilities |
|
86,932 |
|
|
|
85,611 |
|
Stockholders’ equity |
|
2,998,467 |
|
|
|
3,065,139 |
|
Total liabilities and stockholders’ equity |
$ |
3,616,693 |
|
|
$ |
3,719,604 |
|
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