Seattle Genetics Reports Third Quarter 2004 Financial Results
2004-10-26 16:15 (New York)
BOTHELL, Wash.--(BUSINESS WIRE)--Oct. 26, 2004
Seattle Genetics, Inc. (Nasdaq:SGEN) today reported
financial results for its third quarter and nine months ended
September 30, 2004.
Revenues for the third quarter of 2004 were $1.5 million,
approximately the same as revenues in the third quarter of 2003. For
the first nine months of 2004, revenues were $5.0 million, compared to
$3.7 million for the same period in 2003. Revenues primarily represent
fees earned from the company's ongoing technology collaboration and
license agreements.
Total operating expenses for the third quarter of 2004 were $11.4
million, compared to $7.0 million for the third quarter of 2003. For
the first nine months of 2004, total operating expenses were $31.5
million, compared to $21.3 million in the first nine months of 2003.
The increase in operating expenses was primarily driven by higher
levels of contract manufacturing of clinical grade materials, expanded
clinical trial activity, growth in the company's workforce and
additional costs related to the company's expanded laboratory and
office facility.
Research and development expenses increased to $9.6 million in the
third quarter of 2004, compared to $5.3 million in the third quarter
of 2003. The increase is in support of the company's product
development programs, including three drug candidates in clinical
trials. General and administrative expenses were $1.7 million in the
third quarter of 2004, compared to $1.3 million in the third quarter
of 2003.
Seattle Genetics recorded a non-cash charge for a preferred stock
deemed dividend of $7.2 million in the third quarter of 2004. The
non-cash preferred stock deemed dividend, which concluded in the third
quarter of 2004, is associated with the company's $41 million private
placement of Series A convertible preferred stock that closed in July
2003.
Net loss attributable to common stockholders for the third quarter
of 2004 was $16.6 million, or $0.40 per share, compared to $5.2
million, or $0.17 per share, for the same period in 2003. For the nine
months ended September 30, 2004, net loss attributable to common
stockholders was $61.4 million, or $1.56 per share, compared to $16.7
million, or $0.54 per share, for the same period in 2003. The
increased losses in both periods include the non-cash charge for the
preferred stock deemed dividend.
As of September 30, 2004, Seattle Genetics had $112.4 million in
cash, cash equivalents, short-term and long-term investments compared
to $120.4 million as of June 30, 2004.
"During the third quarter, we continued to invest significantly in
advancing our product pipeline through expanded clinical trials and
manufacturing campaigns for our lead programs," commented Clay B.
Siegall, Ph.D., President and Chief Executive Officer of Seattle
Genetics. "We also made progress with our antibody-drug conjugate
(ADC) technology, including the recent announcement of our
collaboration with Bayer. During the remainder of 2004, we expect to
report preliminary data from our SGN-30 and SGN-40 studies at the
American Society of Hematology annual meeting in December, initiate a
trial of SGN-40 in non-Hodgkin's lymphoma and expand our SGN-30
clinical program into Europe."
Highlights of recent accomplishments by Seattle Genetics include
the following:
-- Licensed its ADC technology to Bayer Pharmaceuticals. Bayer
paid a fee of $2.0 million for access to the ADC technology
and will pay maintenance and material supply fees, research
support payments, progress-dependent milestone payments and
royalties on net sales of any resulting ADC products.
-- Initiated a phase II clinical trial of SGN-30 for the
treatment of cutaneous anaplastic large cell lymphoma. The
study, which is the company's third clinical indication for
SGN-30, is designed to evaluate the antitumor activity and
tolerability of SGN-30 in up to 40 patients who have relapsed
or are resistant to prior therapies.
-- Obtained orphan drug designation from the FDA for SGN-40 in
multiple myeloma. SGN-40 is a humanized monoclonal antibody
that is in a phase I clinical trial for the treatment of
multiple myeloma. The company plans to initiate another phase
I study of SGN-40 for the treatment of non-Hodgkin's lymphoma
later this year.
-- Completed expansion of its laboratory and office facility to
accommodate additional employees and development activities.
The company ended the third quarter with 122 employees, up 28
percent from 95 as of September 30, 2003.
About Seattle Genetics
Seattle Genetics discovers and develops monoclonal antibody-based
therapeutics to treat cancer and other human diseases. The company has
built a diverse portfolio of product candidates targeted to many types
of cancer, including three being tested in multiple ongoing clinical
trials, SGN-30, SGN-15 and SGN-40, and three in preclinical
development, SGN-35, SGN-75 and SGN-17/19. The product candidates
encompass three platform technologies: genetically engineered
monoclonal antibodies, antibody-drug conjugates (ADCs) and
antibody-directed enzyme prodrug therapy (ADEPT). Seattle Genetics has
developed leading ADC technology comprised of highly potent synthetic
drugs and stable linkers for attaching the drugs to monoclonal
antibodies. The company currently has license agreements for its ADC
technology with Genentech, Celltech Group, Protein Design Labs,
CuraGen and Bayer Pharmaceuticals and for its ADEPT technology with
Genencor International. More information about Seattle Genetics can be
found at www.seattlegenetics.com. |
