Seattle Genetics (NASDAQ: SGEN) is a biotechnology company that has caught the attention of many hedge fund managers. This Seattle based biotechnology company is focused on the development and commercialization of monoclonal antibody-based therapies for cancer. They currently have one drug on the market, Adcetris or brentuximab vedotin. This drug is approved in the U.S. by the FDA for treatment of Hodgkin lymphoma and is an antibody-drug conjugate or ADC.
So what makes Seattle Genetics a promising investment? The company currently has one drug on the market. Adcetris has performed very well since its release and has won 70% of the market for its approved uses. The drug has generated $70 million in revenue in the first half of the year. In addition Adcetris serves as a showpiece for the companies antibody-drug-conjugates, these complex molecules deliver payloads directly to cancerous cells without the collateral damage associated with traditional chemotherapy. Many major drug companies have made deals or are trying to make deals to gain access to Seattle Genetics's ADC portfolio.
This being said Seattle Genetics has a lot of potential, so far this year their shares are up more than 65%. On the downside for a company valued at nearly $5 billion, Seattle Gen still not turning a profit. I like their potential, they have good science and good collaborations, and if Adcetris is really successful that could be really good for the company. However like many life science companies Seattle Gen is still struggling to be profitable. If you do jump on Seattle Gen, I would recommend balancing your portfolio with some other more stable long term investments, but never the less this is still a company to watch.
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