Monday, April 29, 2019

SeaGen's Adcetris sales are lagging, but AZ is going All-In

Do you pay much attention to the financial reports of ADC companies?   I didn't think so, but here is why you should.

SeaGen just announced that they are seeing slowing sales with Adcetris.  Here is the latest graph:

And the investors did not like this one bit.  The stock price looked like this over the last month:

You might be wondering why this matters to a scientist.  And on the surface it doesn't.  But if the people with money don't get paid, then they start looking at R&D budgets and think that they are a clearly poor investment.  And that starts a trend that none of us want to see.

No need to polish your resume immediately, but we need to see these trends changing if the ADC market at really going to take off.  And rest assured, with only 4 candidates on the market, there are a lot of eyes paying attention to the few companies who are actually forced to publish commercial data publicly.

Conversely, AstraZeneca recently announced that they are partnering with Daiichi Sankyo on trastuzumab deruxtecan,
and that the deal could amount to up to $5.5 billion for Daiichi.  This amount of money shows how strongly AZ believes in this type of therapy, and in the way that the SeaGen news is viewed poorly by potential investors, this AZ news is exactly the opposite.
If you want to see the full report on their earnings, check here:

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