What happened
Shares of Seagen (SGEN), a biopharmaceutical company, are under pressure following a fourth-quarter earnings call the company made after the market closed on Wednesday. Despite top-line revenue figures that beat expectations, the stock is down 14.8% as of 11:03 a.m. ET on Thursday.
So what
Seagen reported total revenue that climbed 26% year over year to $429.9 million. That was $28.2 million more than consensus expectations.
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The stock is falling today in response to the forward guidance management provided. In 2022, the company expects total revenue to land in a range between $1.67 billion and $1.75 billion. That works out to a year-over-year gain of around 7% at the midpoint.
Now what
It's important to note that management's forward guidance excludes sales from Seagen's fourth approved product, Tivdak. This is a new cervical cancer drug Seagen recently launched in collaboration with Genmab.
Tivdak just earned its first approval last September to treat relapsed cervical cancer patients, and it's too early to know its trajectory. Sales during its first full quarter on the market came in at $6 million. That isn't great, but it's not a reason to assume it's in trouble either.
It won't happen in 2022, but Tivdak sales could get a big boost before long. Interim data the company reported last September showed impressive response rates among patients treated with a combination of standard chemotherapy and Tivdak in the first-line setting.
