Corporate Webpages Seattle Genetics, Inc.
Seattle Genetics is one of many companies seeking a cure for
cancer. What makes this company somewhat different is that it
recently received FDA approval for a cancer treatment drug,
"Adcetris," as recently as October, making this a story stock.
However, it has been a long struggle for approval in the U.S.,
and, as we understand it, this is the main single source of
revenue for this company outside of grants and the sale of securities.
We believe at one time, Paul Allen and Bill Gates of Microsoft
fame were principal investors and shareholders in this company,
but that situation is long gone. In the last decade we have
seen news items about "SGN-15, SGN-45, all the way up to SGN-75"
indicating the long tortuous route to find a viable drug.
The company partners with many other pharmaceutical companies in
research and the sale or use of its patents. The company stock
has been volatile, taking a dive in early November after the
release of news on FDA approval for Adcetris. Why?
Concerns arose over a conference call, following Seattle
Genetic's better-than-expected third quarter report. The
company did not provide guidance for future Adcetris sales, and
said it plans to block publication of sales data. The reason
given was, "significant unknowns related to product adoption and
the timing and trajectory of revenues." SGEN is working with
distributors to keep sales data confidential for competitive
reasons. Lack of information and concerns aboutr the drug's
inability to expand its usage has weighed on the stock.
Frankly, Zenith believes it is in the late phase of a bull
market when the quality stocks at bargain prices have all been
snapped up and the action now shifts to the junk markets. Any
companies which have been consistently as much as Seattle
Genetics and its 154 competitors is going to be heavily
penalized in ratings on our site, just because of having
negative earnings. We felt the management was vastly
over-compensated for a company that made its revenues largely
from the sale and dilution of stock, particularly if in the form
of stock option perquisites being regularly exercised by the
CEO, while we might have been more tolerant of the amounts in a
more profitable company. Researchers and analysts generally
don't like this stock, but in its favor is increasing
institutional buying interest.
12-09-2011: Seattle Genetics, Inc. (SGEN): Cancer Treatment Drug Recently Approved
(WAIT FOR PAGE TO LOAD COMPLETELY BEFORE LINKS WORK.)
Company Profile
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Comparison with Peers
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Financial Statements
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Market Grader
Intrinsic Value (Disc. CashFlow)
Intrinsic Value (Proj. Earnings)
Scout Stock Rating
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Research Reports
Analysts' Opinions
Insider Activity
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Sentiment
Short Interest
Stock Report
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Moving Average Chart
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Recommendation
Corporate Wepages
Company Profile |
News |
Comparison |
Similar Companies Performance:
Bond Issue |
Zenith Index |
Under current market conditions, a Zenith Index Score of 1.20 or above is required for a positive rating on this factor. 1.21 -1.30 is considered acceptable, 1.30-1.40 is consider strong and > 1.40 is considered exceptionally strong. Accounting statements in this section often contain mistakes, especially in earlier years' totals, but data is deemed sufficient for us to give a rating. More accurate financial statements follow in the next section.
Seattle Genetics Inc. (SGEN ) Sector: Healthcare
21823 30th Drive SE Industry: Biotechnology
Bothell, WA 98021 Exchange: Nasdaq
Seattle Genetics, Inc., a clinical stage biotechnology company, focuses on
the development and commercialization of monoclonal antibody-based
therapies for the treatment of cancer and autoimmune diseases in the
United States. Its lead product, SGN-35 is in pivotal trial stage used for
the treatment of patients with relapsed or refractory hodgkin lymphoma.
The company-Ęs other product candidates in various stages of clinical
trials include SGN-75, which is in Phase I clinical trials for metastatic
renal cell carcinoma and non-Hodgkin lymphoma; ASG-5ME, a preclinical
antibody-drug conjugate product candidate for the treatment of solid
tumors; dacetuzumab (SGN-40), a humanized anti-CD40 antibody; SGN-70, a
humanized anti-CD70 antibody for the treatment of autoimmune diseases; and
SGN-19A, a preclinical antibody-drug conjugate product candidate for the
treatment of hematologic malignancies. It has collaborations with Bayer
Pharmaceuticals Corporation; Celldex Therapeutics, Inc.; Daiichi Sankyo
Co., Ltd.; Genentech, Inc.; GlaxoSmithKline LLC; Millennium; and PSMA
Development Company LLC. The company also has an antibody-drug conjugates
co-development agreement with Agensys, Inc.; and Genmab A/S. Seattle
Genetics, Inc. was founded in 1997 and is headquartered in Bothell,
Washington.
Last Trade: 17.98 52-Week Range: 22.40 - 12.29
Trade Date: 12-09 Avg. Volume: 2,090,950 Shares
Index Membership: Employees: 348
Corporate Governance:
Audit (Low Concern), Board (Low Concern), Compensation
(Medium Concern), Shareholder Rights (Medium Concern).
EPS: -1.45 Dividend Amount: $ 0.00 Yield: 0.00%
Ex-Dividend Date: N/A Mkt Cap: $ 2,070,000K
Payout Ratio: 0.00%
Last Split Factor (new for old): N/A Split Date: N/A
Key Statistics:
Enterprise Value: $ 1,710,000K Revenue (ttm) : $ 54,040K
Gross Profit: $ 107,470K
Earnings before Income Tax, Depreciation and Amortization: $ -156,870K
Enterprise Value/Revenue (ttm): 31.58 Revenue per Share: $ 0.49
Enterprise Value/EBITDA (ttm): -10.88 Qtrly Rev Growth (y to y): 29.20%
P/E Ratio (fwd projected): 0.00 P/E Ratio (current): 0.00
P/E Growth Ratio (5 yr expected): 2.02 Operating Margin: %-297.19%
Price/Sales Ratio: 38.27 Profit Margin: %-295.00%
Price/Book Value: 8.94 Book Value: $ 2.01/sh.
Return on Assets: -26.10% Net Income Avl to Common: $ -159,410K
Return on Equity: -75.72% Diluted Earnings/Share: $ -1.45
Qrtly Earnings Growth (yoy): 0.00%
Balance Sheet Items : Cash Flow Items (ttm):
(most recent qrtr) (trailing 12 mo.)
Total Cash: $ 361,700K Operating Cash Flow:$ -108,870K
Total Debt: $ 0K Lvgd Free Cash Flow:$ -66,550K
Total Debt/Equity: 0.00
Total Cash/Share: $ 3.15
Current Ratio: 5.23
Share Statistics: Stock Price History:
Shares Outstanding: 115,010K Stk 52-Week Change: 18.45%
Float: 113,410K S&P 500 52-Wk Chng: -0.49%
Sh. Short % of Float: 30.80% 50-Day Moving Avg: 17.92
Short Ratio: 10.90 200-Day Moving Avg: 18.31
% Held by Institutions: 89.10% Beta: 1.01
% Held by Insiders: 1.23%
Analysts' Estimates: Cur. Qtr Next Qtr Cur. Year Next Year
___________________________ Dec 11 Mar 12 Dec 11 Dec 12
Average Earnings Estimate -0.32 -0.29 -1.45 -0.86
Average Revenue Estimate 7M 47M 82M 202M
Factors Comparing This Company to Its Industry Leader (1.0 = Average):
Long Term EPS Growth Rate (5 yr): 0.000 EPS Growth (Qrtly YoY): 0.000
PEG Ratio (ttm, 5 yr expected): 57.714 P/E Ratio (ttm): 0.000
Revenue Growth (Qrtly YoY): 6.121
Annual Income Statements: All numbers in thousands)
Period Ending Dec31,2010 Dec31,2009 Dec31,2008
Total Revenue 107,470 51,965 35,236
Cost of Revenue 0 0 0
Gross Profit 107,470 51,965 35,236
Operating Expenses:
Research & Development 146,410 119,139 110,944
Selling, General & Administrative 29,258 17,683 16,078
Non-Recurring Expenses 0 0 0
Other Operating Expenses 0 0 0
Total Operating Expenses 0 0 0
Operating Income or Loss -68,198 -84,857 -91,786
Income from Continuing Operations:
Total Other Income/Expenses Net 1,933 3,174 6,285
Earnings Before Interest & Taxes -66,265 -81,683 -85,501
Interest Expense 0 0 0
Income Before Taxes -66,265 -81,683 -85,501
Income Tax Expense 0 0 0
Minority Interest 0 0 0
Net Income from Continuing Op.s -66,265 -81,683 -85,501
Non-recurring Events:
Discontinued Operations 0 0 0
Extraordinary Items 0 0 0
Effect of Accounting Changes 0 0 0
Other Items 0 0 0
Net Income -66,265 -81,683 -85,501
Preferred Stock & Other Adjustmnts 0 0 0
Net Income Avail To Common Shares -66,265 -81,683 -85,501
Quarterly Income Statements: All numbers in thousands)
Period Ending Sep30,2011 Jun30,2011 Mar31,2011 Dec31,2010
Total Revenue 20,666 13,054 12,171 8,146
Cost of Revenue 724 0 0 0
Gross Profit 19,942 13,054 12,171 8,146
Operating Expenses:
Research & Development 41,080 49,643 32,434 32,520
Selling, General & Adminis. 19,795 15,197 12,713 10,522
Non-Recurring Expenses 0 0 0 0
Other Operating Expenses 0 0 0 0
Total Operating Expenses 0 0 0 0
Operating Income or Loss -40,933 -51,786 -32,976 -34,896
Income from Continuing Operations:
Total Other Income/Expenses Net 248 280 302 350
Earnings Before Int. & Taxes -40,685 -51,506 -32,674 -34,546
Interest Expense 0 0 0 0
Income Before Taxes -40,685 -51,506 -32,674 -34,546
Income Tax Expense 0 0 0 0
Minority Interest 0 0 0 0
Net Income from Continuing Op.s -40,685 -51,506 -32,674 -34,546
Non-recurring Events:
Discontinued Operations 0 0 0 0
Extraordinary Items 0 0 0 0
Effect of Accounting Changes 0 0 0 0
Other Items 0 0 0 0
Net Income -40,685 -51,506 -32,674 -34,546
Preferred Stock & Other Adj.s 0 0 0 0
Net Income Avail To Common Shs -40,685 -51,506 -32,674 -34,546
Annual Balance Sheets: All Numbers in Thousands
Period Ending Dec31,2010 Dec31,2009 Dec31,2008
Current Assets:
Cash & Cash Equivalents 21,127 18,486 30,800
Short Term Investments 260,682 242,319 64,379
Net Receivables 20,061 81,472 10,074
Inventory 0 0 0
Other Current Assets 2,246 6,302 5,463
Total Current Assets 304,116 348,579 110,716
Long-Term Investments 13,031 26,925 65,529
Property, Plant & Equipt 12,311 12,325 10,996
Goodwill 0 0 0
Intangible Assets 0 0 0
Accumulated Amortization 0 0 0
Other Assets 478 504 476
Deferred Long Term Asset Charges 0 0 0
Total Assets 329,936 388,333 187,717
Current Liabilities:
Accounts Payable 25,783 19,496 15,879
Short/Current Long Term Debt 0 0 0
Other Current Liabilities 29,038 85,002 24,341
Total Current Liabilities 54,821 104,498 40,220
Long Term Debt 0 0 0
Other Liabilities 0 0 0
Deferred LT Liability Charges 113,597 77,635 68,479
Minority Interest 0 0 0
Negative Goodwill 0 0 0
Total Liabilities 168,418 182,133 108,699
Stockholder Equity:
Misc. Stocks Options Warrants 0 0 0
Redeemable Perferred Stock 0 0 0
Preferred Stock 0 0 0
Common Stock 102 101 80
Retained Earnings -461,970 -395,705 -314,022
Treasury Stock 0 0 0
Capital Surplus 624,759 603,053 394,338
Other Stockholder Equity -1,373 -1,249 -1,378
Total Stockholder Equity 161,518 206,200 79,018
Net Tangible Assets 161,518 206,200 79,018
Quarterly Balance Sheets: All Numbers in Thousands
Period Ending Sep30,2011 Jun30,2011 Mar31,2011 Dec31,2010
Current Assets:
Cash & Cash Equivalents 112,105 79,797 61,469 21,127
Short Term Investments 249,592 331,322 381,128 260,682
Net Receivables 16,461 12,203 9,849 20,061
Inventory 3,428 0 0 0
Other Current Assets 5,325 4,363 2,673 2,246
Total Current Assets 386,911 427,685 455,119 304,116
Long-Term Investments 12,791 13,144 13,256 13,031
Property, Plant & Equipt 14,638 12,125 11,739 12,311
Goodwill 0 0 0 0
Intangible Assets 0 0 0 0
Accumulated Amortization 0 0 0 0
Other Assets 6,150 681 479 478
Deferred LT Asset Charges 0 0 0 0
Total Assets 420,490 453,635 480,593 329,936
Current Liabilities:
Accounts Payable 38,287 33,836 25,393 25,783
Current Portion LT Debt 0 0 0 0
Other Current Liabilities 35,636 35,678 34,424 29,038
Total Current Liabilities 73,923 69,514 59,817 54,821
Long Term Debt 0 0 0 0
Other Liabilities 0 0 0 0
Deferred LT Liab. Charges 115,323 120,093 115,947 113,597
Minority Interest 0 0 0 0
Negative Goodwill 0 0 0 0
Total Liabilities 189,246 189,607 175,764 168,418
Stockholder Equity:
Misc. Options, WarrantS 0 0 0 0
Redeemable Perferred Stock 0 0 0 0
Preferred Stock 0 0 0 0
Common Stock 115 114 114 102
Retained Earnings -586,835 -546,150 -494,644 -461,970
Treasury Stock 0 0 0 0
Capital Surplus 819,581 811,268 800,523 624,759
Other Stockholder Equity -1,617 -1,204 -1,164 -1,373
Total Stockholder Equity 231,244 264,028 304,829 161,518
Net Tangible Assets 231,244 264,028 304,829 161,518
Annual Cash Flow: All Numbers in Thousands
Period Ending Dec31,2010 Dec31,2009 Dec31,2008
Net Income -66,265 -51,506 -85,501
Operating Activites:
Depreciation 6,991 6,882 3,415
Adjustments to Net Income 14,528 13,097 13,192
Changes in Accounts Recv'bls 61,411 -71,398 -3,328
Changes in Liabilities -13,913 72,186 13,811
Changes in Inventories 0 0 0
Changes in Other Op'ing Actv's 0 -867 -4,219
Total Cash Flow fr Operations 6,834 -61,783 -62,630
Investing Activities:
Capital Expenditures -3,548 -4,589 -4,884
Investments -8,022 -142,829 -62,944
Other Cash Flows fr Investing 0 0 0
Total Cash Flows fr Investing -11,570 -147,418 -67,828
Financing Acitivies:
Dividends Paid 0 0 0
Sale or Purchase of Stock 7,377 196,887 101,614
Net Borrowings 0 0 0
Other Cash Flows fr Financing 0 0 0
Total Cash Flows fr Financing 7,377 196,887 101,614
Effect of Exchange Rate Change 0 0 0
Change in Cash & Cash Equiv.s 2,641 -12,314 -28,844
Quarterly Cash Flow: All Numbers in Thousands
Period Ending Sep30,2011 Jun30,2011 Mar31,2011 Dec31,2010
Net Income -40,685 -51,506 -32,674 -34,546
Operating Activites:
Depreciation 2,089 2,194 1,702 1,419
Adjustments to Net Income 5,778 4,476 4,286 4,289
Changes in Accounts Recv'bls -4,258 -2,354 10,212 -3,747
Changes in Liabilities -649 13,629 7,328 9,432
Changes in Inventories -3,428 0 0 0
Changes in Other Oper'g Acts 0 -1,892 -428 1,221
Total Cash Flow f Operations -41,912 -35,453 -9,574 -21,932
Investing Activities:
Capital Expenditures -3,431 -1,282 -303 -415
Investments 80,589 48,580 -121,289 18,854
Other Cash Flows fr Investing 0 0 0 -31
Total Cash Flows fr Investing 71,396 47,298 -121,592 18,408
Financing Acitivies:
Dividends Paid 0 0 0 0
Sale or Purchase of Stock 2,824 6,483 171,508 1,880
Net Borrowings 0 0 0 0
Other Cash Flows fr Financing 0 0 0 0
Total Cash Flows fr Financing 2,824 6,483 171,508 1,880
Effect of Exchange Rate Chg 0 0 0 0
Change in Cash & Cash Equiv. 32,308 18,328 40,342 -1,644
SGEN Seattle Genetics Inc. [Indices near +3.0 or near zero,
or < zero bear special attention.]
P/E Ratio Tests:
Current P/E Ratio < 28? 0.0000 P/E Ratio > 5? 0.0000
P/E Ratio Vs Growth Rate: 3.0000 Forward P/E Ratio < 28? 0.0000
Sales Tests:
Price/Sales Ratio < 2.3? 0.0601 Inventory/Sales < 5%? 1.0000
Sales < $1 billion? 3.0000 Operating Margin < 7.5%? -0.0252
Balance Sheet Tests:
Debt/Equity < 0.40? 1.0000 Long-Term Debt Service: 3.0000
LTD Being Reduced? 1.0000 Short-Term Debt Service: 3.0000
Current Ratio > 2? 2.6150 Working Capital >= 1.5? 0.3821
Leverage Ratio < 20%? 3.0000 Debt / Assets < 1? 1.0000
Quick Ratio > 1? 1.7392 Inventory Turnover > 1? 0.0563
Shares Out Decreasing? 1.8000 Market Cap.> 1.5 Billion? 0.7246
Profit Margin > 7.5%? -3.0000
Income Tests:
Dividend Yield > 2.0%? 0.0000 EPS Annual Growth > 10%? -3.0000
Enterprise Value/Revenue: 3.0000 EPS 5-yr Growth > 20%? 0.0000
Enterprise Value/EBITDA: -1.5543 EPS Growth Consistent? 2.4000
EPS Qrtly Growth > 10%? 0.0000 Collection < 45 days? 0.6605
Rev. Qtrly Growth > 15%? 3.0000 Gross Pft/Cur. LTD < 1? 3.0000
EPS Annual Growth > 10%? -3.0000 Borrowing Int. Rate< 6%? 1.0000
Stock Performance Tests:
Volatility > 25%? 2.3315 % Held by Insiders < 5%? 3.0000
Beta > 1.25? 0.8080 % Held by Institut. < 50? 0.5612
50 Da MA > 200 Da MA? -0.0651 % Held by Institut. > 30? 2.9700
52-Wk Change vs. S&P 500: -0.0327 Short Ratio > 5? 2.1800
Price/Book Value < 3? -3.0000 Short % of Float > 20? 1.5400
Return on Assets > 17%? -1.5353 Average Volume > 100,000? 3.0000
Cash Flow Tests:
Oper. C.F. > Lever'd C.F: -1.6359 Positive Free Cash Flow? 0.0000
Positive Oper. Cash Flow? 0.0000 Price to C.F./sh. Ratio: -2.2217
Cash Flow / Assets >.10? -1.5827
SGEN Seattle Genetics Inc. Overall Zenith Index: 0.8403
Financial Statements |
Income Statement:
Balance Sheet:
Cash Flow Statement:
Financial Ratios |
. . . . . . . . . . . . 1 = Highest , 10 = Lowest
Market Grader |
Intrinsic Value (DCF) |
Intrinsic Value by Discounted Cash Flow Method:
Intrinsic Value (PEG) |
Intrinsic Value by Projected Earnings Growth Method:
Stock Scout |
We find "Scout" to be a bit biased toward the high end, so anything under a 6 is considered a negative, 6 and above, positive.
Projected Earnings |
Research Reports |
Analysts' Opinions |
Insider Activity |
Institutional Activity |
Institutional Orders to Buy or Sell:
Sentiment |
Zenith uses the "sentiment" score above or below 50 to award a positive or negative point in the Decision Matrix.
Short Interest Ratio |
As the short interest rises as a percentage of average daily share volume (Days to Cover), this is considered a measure of negative sentiment. Similarly, a decrease in that percentage is considered positive sentiment.
Stock Report |
Management's Discussion of Results of Operations Excerpts |
Moving Average Chart |
Right Time Study |
Channeling Potential |
The summary below includes a value for `Degree,' which refers on a
scale of 1 to 10 the range of a channel in the period under consi-
deration compared to the total range of price movement. It also looks
for the last closing price to be within the channel, otherwise zeroed.
The `Index' is the `Degree' weighted for volatility. Generally, the
the higher the index, the more suitable is the stock for trading as
a `rolling stock' between channel high and low points.
Results for Seattle Genetics:
Symbol? SGEN
Total Months Available: 129
Months in Cycle? 4
Months Covered by Periods: 12
Period 1 Period 2 Period 3
H1 L1 H2 L2 H3 L3
17.45 13.94 21.41 12.29 22.40 12.46
RANGE = 22.40 TO 12.29 Close = 17.10
CHANNEL = 17.45 TO 13.94 Degree = 3
Volatility = 20.53% Index = 6
Intraday Chart |
2 Days:
Stock Fetcher |
Point & Figure Chart |
Wall Street Analyzer |
Marketspace Chart |
Time Series Forecast |
Neural Network Prediction |
"Neurostock" can only track long trades. Therefore its performance, as tracked by itself on stocks which are consistently falling, may not appear as good as it could if each "sell" signal were a "short sale."
Ultimate Trading Systems |
The "ultimate systems" are inconclusive, giving no clear confirmed signals.
The corresponding trades for the above chart are shown in tabular form below.
Recommendation |
| Factors | Weighted Points |
|---|---|
| News | - 1 |
| Comparison | - 1 |
| Industry | - 1 |
| Bond Issue | 0 |
| Zenith Index | - 1 |
| Non-GAAP vs. GAAP Earnings < 1% | + 1 |
| Cash Flow | + 1 |
| Ratios | - 1 |
| Market Grader | - 1 |
| Intrinsic Value DCF | - 1 |
| Intrinsic Value DDM | - 1 |
| Stock Scout | + 1 |
| Projected Earnings | - 1 |
| Research Reports | - 1 |
| Analysts | - 1 |
| Executive Perquisites | - 1 |
| Insider Activity | - 1 |
| Institutional Activity | + 1 |
| Management Reporting | + 1 |
| Short Interest | + 1 |
| Sentiment | + 1 |
| Standard & Poor's | - 1 |
| Moving Average | + 1 |
| Right Time Study | - 1 |
| Stock Fetcher | - 1 |
| Point & Figure | - 1 |
| Wall Street Analyzer | - 1 |
| Marketspace Chart | - 1 |
| Time Series Chart | - 1 |
| Neural Network | + 1 |
| Stock Options | + 1 |
| Ultimate Trading Systems | 0 |
| Total | - 10 |
Place 1,650 shares of Seattle Genetics (SGEN) on the Active List.
