This was a pivotal year for Seattle Genetics
Expect more of the same in 2012. Instead of an approval, it'll be sales figures that are the pivotal event for 2012.
In the third quarter, Seattle Genetics racked up $10 million in sales of its blood cancer drug Adcetris, a solid showing considering that the drug was approved only in the middle of the quarter. But it'll have to ramp up fairly quickly to justify its $2 billion market cap. At a price-to-sales ratio of 5, there's about $400 million in sales built into the price, so Seattle Genetics doesn't need an instant blockbuster like Vertex Pharmaceuticals'
Beyond the sales of Adcetris, Seattle Genetics needs to continue working on its pipeline. Approval of a second drug controlled by Seattle Genetics is still a few years away, but there's room for Adcetris to grow sales all by itself. The European marketing application was submitted by its partner Takeda earlier this year, so an approval should be coming shortly.
There's also potential to expand Adentris into different patient populations. It's in a phase 3 trial testing it as a maintenance treatment for Hodgkin's lymphoma after stem-cell transplant; Celgene
Finally, and this shouldn't be overlooked, Seattle Genetics has licensed out its antibody drug conjugate technology to multiple partners. There's a total of 12 drugs in the clinic and more that are still in the preclinical stage, including Pfizer
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Fool contributor Brian Orelli holds no position in any company mentioned. Check out his holdings and a short bio. The Motley Fool owns shares of Dendreon and Abbott Laboratories. Motley Fool newsletter services have recommended buying shares of Vertex Pharmaceuticals, Pfizer, and Abbott Laboratories. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.