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Seattle Genetics (SGEN +2.1%) erases a +5% loss at the open, despite posting a Q1 revenue miss...

Seattle Genetics (SGEN +2.1%) erases a +5% loss at the open, despite posting a Q1 revenue miss late yesterday. Total revenue actually jumped nearly 300% Y/Y, driven by higher sales of its lymphoma drug Adcetris. RBC Capital says the company still has multiple market expansion opportunities, and should be bought on weakness.
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Comments (1)
  • mikeurl
    , contributor
    Comments (447) | Send Message
     
    People selling at the open have absolutely no idea what the company does, why they hold it or what the opportunities are. There was no news in this quarterly report that indicates a sell.

     

    SGEN is about to move into trials for front-line therapy. The market for on-label uses is known and not huge. Investors ought not expect enormous revenues on Adcetris just based on current on-label indications. The full addressable market if nothing changes is around 70 mil a quarter. maybe less.

     

    The opportunity is in the ongoing trials and those may provide selling events depending on how they go. But people selling at the open today have no business being in this stock. They don't understand it and are needlessly contributing to volatility.
    9 May 2012, 01:46 PM Reply Like
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