SGEN Misses Low Expectations, Shares Could Continue to Decline
(Thomson Reuters ONE) -
Seattle Genetics (NASDAQ:SGEN) missed earnings expectations again, leaving
analysts and investors uncertain about the company's 2012 revenue guidance and
beyond. Major shareholders may seek to trim positions, and some, like Wellington
Management and Baker Brothers Life Sciences, already have as SGEN's $2.8 billion
valuation is being questioned given the rapidly flattening growth of the
company's cancer treatment and key value driver Adcetris.
Sales of the drug came in at $34.7 million in 2Q 2012, below the consensus
estimate of $36.2 million, which was significantly reduced after the company
missed 1Q 2012 expectations by a wide margin. Importantly, the company was
heading into last night's earnings call with what looked to be an easy number to
hit (2Q forecasts called for just 5% Adcetris sales growth from 1Q 2012 levels).
Given prior estimates of 44% growth in Adcetris sales next year, long-term
forecasts are likely to come down today as investors and analysts become less
comfortable with the product's future growth prospects.
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Datum: 09.08.2012 - 16:32 Uhr
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