- Buyers of Seattle Genetics (SGEN -6.6%) are nowhere to be found, although the selling is on lower-than average volume. Shares have lost 26% of their value since mid-October.
- Investors appear to have lost confidence in the expected upside from Adcetris (brentuximab vedotin) in first-line classical Hodgkin lymphoma (HL). According to Guggenheim's Adnan Butt, doctors are pushing back on the substantial price differential compared to standard-of-care chemo, $300K versus $4K.
- Data from a Phase 3 study, ECHELON-1, showed that HL patients treated with the combination of Adcetris + AVD chemo in a first-line setting experienced an 86% response rate, only slightly better than 83% for the chemo regimen alone.
- Despite the uninspiring situation, Mr. Butt remains bullish on the stock and sees peak Adcetris sales of $1B for the indication, noting that while doctors may be on the fence, patients shouldn't be if they don't have significant out-of-pocket costs.
- Source for analyst comments: Bloomberg
- Previously: Seattle Genetics files U.S. marketing application for expanded use of Adcetris (Nov. 2)
- Now read: AveXis (AVXS) Phase 1 SMA Type 2 Trial Initiation And Study Design - Slideshow
Original article