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Seattle Genetics Reports Second Quarter 2001 Results
July 24, 2001 at 12:00 AM EDT
Bothell, WA — July 24, 2001— Seattle Genetics, Inc. (Nasdaq: SGEN) today reported results for its second quarter ended June 30, 2001. Revenues for the quarter were $35,000, compared to revenues of $36,000 in the second quarter of 2000. For the first six months of 2001, revenues were $35,000, compared to $56,000 for the same period in 2000. Revenues for the quarter are attributable to the Company’s collaboration with Eos Biotechnology, where the majority of the upfront payment from the collaboration is being deferred and will be recognized over future periods.
Total operating expenses for the second quarter were $6.0 million, compared to $1.7 million for the second quarter ended June 30, 2000. For the first six months of 2001, total operating expenses were $10.9 million, compared to $3.1 million for the comparable period in 2000. Operating expenses, excluding non-cash stock-based compensation, depreciation and amortization, were $4.3 million for the second quarter compared to $1.3 million in the second quarter of 2000.
During the quarter, research and development expense grew to $3.5 million compared to $1.0 million for the comparable period in 2000, while general and administrative expense rose to $832,000 from $345,000 in the year ago period. This growth was driven by an increase in the Company’s workforce, manufacturing of clinical grade materials and expansion of clinical trials. Seattle Genetics has increased its staff levels over the last year by approximately 80 percent, to 58 employees, which includes 20 staff members with either Ph.D. or M.D. degrees.
The Company reported a net loss for the second quarter of $5.1 million, or $0.18 per share, compared to a net loss of $1.2 million, or $0.38 per share for the same period in 2000. For the six months ended June 30, 2001, net loss was $9.4 million, or $0.49 per share, compared to a net loss of $2.1 million, or $0.68 per share for the same period in 2000.
At the end of the June quarter, Seattle Genetics had $68.3 million in cash, cash equivalents, short-term and long-term investments, compared to $27.8 million as of December 31, 2000. The increase is primarily due to the Company’s March 7, 2001 initial public offering and concurrent private placement resulting in net proceeds to the Company of $46.4 million.
“During the second quarter, key accomplishments included expanding the clinical development of our lead product candidate, SGN-15, to include patients suffering from non-small cell lung cancer and the out-licensing of our antibody drug conjugate technology for enhancing the potency of monoclonal antibodies through our agreement with Eos Biotechnology,” said H. Perry Fell, Ph.D., Chief Executive Officer of Seattle Genetics.
Recent highlights include:
On May 17, 2001, the Company announced the appointment of new members to both its Board of Directors and its Scientific Advisory Board. Douglas E. Williams, Ph.D., Executive Vice President, Chief Technology Officer and Director of Immunex Corporation (Nasdaq: IMNX) joined the Seattle Genetics Board of Directors. Dan L. Longo, M.D., Scientific Director at the National Institute on Aging, was added to the Company’s Scientific Advisory Board.
On June 5, 2001, Seattle Genetics and Eos Biotechnology announced a collaboration to use Seattle Genetics’ antibody drug conjugate technology with Eos’ proprietary monoclonal antibodies. Seattle Genetics has fully synthetic, highly potent, novel drugs that can be used as payloads to dramatically increase the potency of monoclonal antibodies as therapeutic agents. Under the multi-year agreement, Seattle Genetics will provide broad access to its proprietary, novel classes of cell-killing drugs and linkers to Eos, in exchange for an upfront payment, service and reagent fees, milestone payments and royalties.
On July 10, 2001, Seattle Genetics announced that Morris Rosenberg joined the company as its Vice President of Development. Dr. Rosenberg is responsible for overseeing all aspects of development through to clinical trials. He brings over 14 years of scientific, manufacturing, process development and management experience, most recently as Head of Fermentation and Cell Culture Process Development with Eli Lilly (NYSE: LLY).
On July 18, 2001, Seattle Genetics announced that it licensed monoclonal antibodies from CLB-Research and Development of the Netherlands. CLB will supply antibodies that target various cancers and immunologic disease. Seattle Genetics will evaluate the antibodies as therapeutic agents alone as well as apply its antibody-drug conjugate technology as a way of increasing their potency. Seattle Genetics will have development, manufacturing and worldwide commercialization rights to therapeutic products derived from the antibodies.
Seattle Genetics will host a conference call to discuss second quarter results on July 24, 2001 at 2:00 p.m. Pacific / 5:00 p.m. Eastern. The live call and replay will be available from the “News & Investor Information/Audio Presentations” section of the Company’s website at www.seattlegenetics.com.
About Seattle Genetics
Seattle Genetics discovers and develops monoclonal antibody, or mAb, -based therapeutics to treat cancer and related diseases. The Company utilizes its mAb-based technologies to increase the potency and efficacy of antibodies with specificity for cancer. Seattle Genetics has four mAb-based technologies: engineered mAbs, mAb-drug conjugates, single-chain immunotoxins and antibody-directed enzyme prodrug therapy (ADEPT). Using these technologies and its expertise in cancer, Seattle Genetics has built a diverse portfolio of drug candidates targeted to many types of human cancers, including two currently being tested in clinical trials. The Company also out-licenses its mAb-based technologies to strategic partners developing targeted therapies. More information about Seattle Genetics can be found at www.seattlegenetics.com.
Certain of the statements made in this press release are forward-looking, such as those, among others, relating to the Company’s goals for the next twelve months. Actual results or developments may differ materially from those projected or implied in these forward-looking statements. Factors that may cause such a difference include risks related to adverse clinical results as our product candidates move into and advance in clinical trials, risks inherent in early stage development and failure by Seattle Genetics to secure collaborators. More information about the risks and uncertainties faced by Seattle Genetics is contained in the Company’s filings with the Securities and Exchange Commission. Seattle Genetics disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Seattle Genetics, Inc.
Seattle Genetics, Inc.
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