Seattle Genetics (SGEN) reported its fourth-quarter and 2019 full-year financial results this afternoon. Revenue for Q4 came in at $289.8 million, a substantial increase from the $174.5 million reported for Q4 2018. While net product sales have gone up noticeably, royalty and license agreements revenues have seen exponential growth as well, with both having almost tripled over the past 12 months.
The bulk of the quarter's revenue came from sales of Adcentris, a cancer drug used to treat patients with Hodgkin lymphoma. The drug brought in $166.2 million in sales in the U.S. and Canada, a 26% increase from the $132.1 million reported in Q4 2018.
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Overall, this handily beat Wall Street's estimates for the quarter, with the consensus sales forecast predicting around $219.2 million in revenue. For 2020, Seattle Genetics expects between $675 million to $700 million in Adcentris sales, $105 million to $115 million in royalty revenue, and another $30 million to $50 million in income from license agreements.
A strong ending to a strong year
Seattle Genetics has been one of the top-performing biotech stocks of last year, with shares having shot up by 102% in 2019. In December, the company submitted a New Drug Application (NDA) for a new HER-2 positive breast cancer drug known as tucatinib. The drug had already received breakthrough designation from the Food and Drug Administration (FDA) in December.
