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What: Shares of biotech company Seattle Genetics
So what: For the quarter, Seattle Genetics reported a near-quadrupling in sales to $48.2 million as the company sold $34.5 million worth of its cancer drug Adcetris, which was approved by the Food and Drug Administration in August for the treatment of Hodgkin's lymphoma and systemic anaplastic large cell lymphoma. Its quarterly loss came in at $0.11 per share. Although the loss met Wall Street's estimates, sales estimates for Adcetris fell about $3 million shy of the consensus. For the year, Seattle Genetics forecast Adcetris sales of $140 million-$150 million and collaboration/licensing revenue of $55 million-$65 million.
Now what: Despite the sales miss, RBC Capital told investors this morning that any dip in Seattle Genetics shares is a buying opportunity, as it expects the company to report positive data at the ASCO conference. That may be partly responsible for the strength in its share price since it opened significantly lower this morning. As for me, I see Seattle Genetics as largely range-bound until it can produce that elusive quarterly profit.
Craving more input? Start by adding Seattle Genetics to your free and personalized watchlist so you can keep up on the latest news with the company.
Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.
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