posted
$860 million deal is no joke with $60 million up front ,nice one. Just doing DD and it seems its a low floater also and they have over 50 million on hand as of now its over $110 after Genentech deal. NICE PICK
Posts: 54 | From: world | Registered: May 2006
| IP: Logged |
posted
SGEN has aimpressive pipeline ,Genentech knows how to pick em apparently earnings were up and they beat estimates heavily... BIOTECH sector is in full swing now.
-------------------- M.L. Posts: 54 | From: world | Registered: May 2006
| IP: Logged |
posted
almost a Billion dollar deal on SGEN so I may look to enter at these PPS prices, if it goes double digit I wouldn't be surprised now. This one is a hot one and I haven't seen a deal like this for a long time in BIO sector.
-------------------- M.L. Posts: 54 | From: world | Registered: May 2006
| IP: Logged |
posted
SGN40 can get a quick approval if FDA sees a good chance of survival rate for he targeted sever cancers and if so it may come this year maybe and only a maybe.I just read that multiple target of cancers are in works. This stock will be in Billion dollar range PE sooner than we think .FDA approvals on severe cancer drugs are easily defended and supported . Time to load this boat
-------------------- M.L. Posts: 54 | From: world | Registered: May 2006
| IP: Logged |
Genentech Inc. 4Q Earnings Soar 75 Pct. Thursday January 11, 1:36 am ET By Paul Elias, AP Biotechnology Writer Biotech Bellwether Genentech 4th Quarter Earnings Soar 75 Percent
SAN FRANCISCO (AP) -- Genentech Inc. is vowing to keep growing at a double-digit rate for the foreseeable future by continuing to spend billions of dollars annually on research and development of new drugs.
ADVERTISEMENT click here Chief Executive Art Levinson said during a conference call reporting robust earnings Wednesday that the company plans to spend 18 percent of its revenues this year on research and development.
Some analysts on a conference call with company executives questioned if that was enough spending to ensure the South San Francisco-based company continued to expand.
Levinson said any more spending would dilute Genentech's highly skilled work force and that 18 percent of the company's revenues -- which amounted to $9.28 billion last year -- is a large amount of money.
"If you start allowing mediocre people to entrench your place, productivity drops," Levinson said.
In reporting its earnings, Genentech said strong demand for its cancer-fighting drugs fueled a 75 percent profit increase, and company executives shook off doubts that the biotechnology bellwether could maintain its phenomenal growth rate.
The company reported it earned $594 million, or 55 cents per share, during the three months ending in December, compared with $339.2 million, or 31 cents per share, at the same time in 2005.
Revenue for the period totaled $2.7 billion, a 38 percent increase from the previous year.
If not for accounting expenses unrelated to its ongoing operations, Genentech said it would have earned $659 million, or 61 cents per share. That figure exceeded by a nickel the expectations among analysts surveyed by Thomson Financial.
For 2006, the company reported earnings of $2.1 billion, a 65 percent increase over 2005.
The company said it expects 25 percent to 30 percent growth in 2007.
Analysts also fretted about the sales potential of the company's newest drug, Lucentis, which treats an eye disorder in the elderly. The Food and Drug Administration in June approved Lucentis to treat macular degeneration, but the drug's roll out was accompanied by concern sales would taper off after an initial splash in the marketplace.
For the fourth quarter, Genentech said drug's sales increased to $217 million, from $153 million in sales in the previous quarter, and analysts said Lucentis now appears to rapidly becoming the primary treatment for macular degeneration -- the leading cause of blindness among the elderly.
Analysts are still concerned that patients require fewer doses after about a year's treatment. Further, another of the company's drugs, Avastin, is poaching sales "off-label" from Lucentis because it's cheaper to prescribe.
"I would be looking for some sort of slowing rather than looking for explosive growth," Genentech Executive Vice President Ian Clark said.
Still, sales of the company's three blockbuster cancer treatments continued to surge, and analysts on the conference call were mostly optimistic about the company's long-term prospects.
Sales of the non-Hodgkin's lymphoma treatment Rituxan rose to $560 million for the quarter, up 16 percent from a year ago, while sales of Genentech's colon cancer staple, Avastin, shot up 36 percent to $490 million. The breast cancer treatment Herceptin accounted for $322 million in sales in the last quarter, a 29 percent increase.
The three drugs combined for $5 billion in sales for the year.
The results were released after the market closed Wednesday. The company's shares fell 95 cents to close at $83.74 but rose 96 cents, or about 1.2 percent, to $84.70 in aftermarket trading.
-------------------- M.L. Posts: 54 | From: world | Registered: May 2006
| IP: Logged |
NEW YORK, Feb 2 (Reuters) - Seattle Genetics Inc. (SGEN.O: Quote, Profile , Research) shares closed up 11 percent to a multiyear high on Friday, a day after a 15 percent jump, with analysts saying the biotechnology company was undervalued and possibly a target for big drugmakers eager for new products.
Analysts also said Seattle Genetics had executives on a marketing trip in New York this week that appears to have helped spark investor attention. Reuters Pictures Photo
Editors Choice: Best pictures from the last 24 hours. View Slideshow
"It's a great company with an excellent management team, so I wouldn't be surprised if they did a great job marketing," said Liisa Bayko, an analyst for Next Generation Equity Research who has a "buy" rating on the stock.
Seattle last month signed an $860 million partnership deal with Genentech Inc. (DNA.N: Quote, Profile , Research) for its leading experimental cancer drug in development.
Bayko said the deal with the world's leading cancer drug company validated Seattle Genetics' technology, but did not boost the stock price as much as it might have at the time.
"At the levels it was trading prior to (this week's) run-up, it was really undervalued after the Genentech deal," Bayko said. "It was trading in the $6 range and that's hugely undervalued."
huge udervaluation I've seen these hit $50 -$60 now thats what I call value
-------------------- M.L. Posts: 54 | From: world | Registered: May 2006
| IP: Logged |
UBBFriend: Email this page to someone!
Printer-friendly view of this topic
