also posted on Momo/tfif, sorry for the duplicate post, but easier for me to keep track of my thinking here. (PS I have WHR analyst reports if interested).
An idea i have started digging is SGEN. Seems unloved.
Trading about $7/share, 56mm shares.
About $130mm -- $2.35/shr in cash on hand, no debt.
Recent offering @ $8.25/share
About $390mm mkt cap and EV of about $258mm
Short position has increased to 1.4mm in June, up from 1mm; about 5.26 days to cover.
burn is about $25mm/year, though it should increase given the move to PIII, figure another $10mm on top, still a decent shot to get something accomplished.
Pipeline:
SGN-15 (+Taxotere) P2 for NSCLC -- no partner
SGN-30 P2 Hodgkins -- no partner (Orphan)
SGN-30 P2 anaplastic large cell lyphoma -- no partner
SGN-40 P1 Multiple Myeloma -- no partner
SGN-35 Pre-Clin Hemat. Malignancy -- no partner (adc version of sgn-30)
SGN-75 Pre-Clin Renal Cancer -- no partner
SGN-17/19 Preclin Melanoma -- Genencor
timing:
q3 sgn-30 begin p2 in cutaneous lymphoma
q3 sgn-40 begin p1 in relapsed nhl
q3 sgn-15 begin p2 in nsclc (dose prior to tax i think)
DEC sgn-30 prelim p2 data ASH
DEC sgn-40 prelim p2 data ASH
q4/q1'05 sgn-40 being cll trials
q205 sgn-30 begin p2 w/chemo
mid '05 sgn-40 begin p2 in NHL
mid '05 sgn-15 begin p3
2005 sgn-35 file IND
2H '05 sgn-75 enter clinic?
Recently signed up curagen for some work on the early adc stuff -- up to two canditates, milestones of up to $28mm for the first candidate.
Multi-year/target deal w/ Genetech -- cash/equity and mid single digit royalties.
Working w/ PDLI and Celltech on ADC stuff, presented collaborative work w/ abgx, working with genecor on adept stuff.
ABT will do manufacturing/GMP for SGN-30.
licenses:
Bristol-Myers -- required to pay royalties on net sales of future products;
Genentech -- SGN-40 including a license under Cabilly patents -- an upfront license fee, a progress-dependent milestone payment and royalties
Protein Design Labs granted one license and options for two under antibody humanization patents used for SGN-40 -- pay annual maintenance fees and royalties on net sales of products
Medarex -- fully-human mabs for certain breast cancer & melanoma antigen targets -- Medarex bought $2.0 million of common @ ipo March 01.
ICOS -- non-exclusive rights to use CHEF expression system to manufacture SGN-30 -- milestone payments and royalties on net sales
University of Miami -- an exclusive license agreement covering an anti-CD30 monoclonal antibody that is the basis of SGN-30 and the antibody component of SGN-35. -- up front payment,annual maintenance fees, progress-dependent milestone payments and royalties on net sales
Mabtech AB. In June 1998, we obtained exclusive, worldwide rights to a monoclonal antibody targeting the CD40, basis for SGN-40 -- make a progress-dependent milestone payment and royalties on net sales
CLB-Research and Development (Netherlands)-- exclusive license to specific monoclonal antibodies that target cancer and immunologic disease targets One of these is basis of SGN-75 -- up front and option exercise payments, progress-dependent milestone payments and royalties on net sales.
Ariz State -- worldwide, exclusive license to Auristatin E.
major holders (includes impact of convert):
JPMP Capital 7,312,500 12.7 %
Baker Brothers 7,312,500 12.7 %
FMR 5,215,000 9.2%
Cascade Investment 3,521,088 6.2 %
Genentech 2,753,872 4.9 %
Jonathan Gallen 2,247,355 4.0 %
Clay B. Siegall 1,931,915 3.4 %
H. Perry Fell 1,925,040 3.4 %
Sofinnova Venture Partners 1,837,133 3.2 %
Karl Erik Hellström 757,500 1.3 %
Uglies:
Insiders dump stock continually. Disappointing, but to be expected I guess...
Some of their cash is invested long-term (MBS and corporates to be specific), this can be quite volatile and I don't know why the CFO is playing with fire..
Why they issued convertible preferred is beyond me -- again another "clever" CFO trick...
Any thoughts on the validity of the science?
thanks for comments/thougths
take care.
George |
