BOTHELL – Seattle Genetics Inc. will begin clinical trials for its fourth potential cancer-fighting drug by the end of the year, the company announced Tuesday.
SGN-35, aimed as a treatment against Hodgkin’s disease, will be the first candidate that uses the company’s antibody-drug conjugate technology to enter clinical testing.
The conjugate technology helps drugs attach themselves to the cells at which they’re targeted while leaving other cells unharmed.
Meanwhile, Seattle Genetics’ lead drug candidate, SGN-40, is nearly ready for a phase 2 test, said Clay Siegall, the company’s chief executive officer. He said the collection of cancers the drug may be able to treat isn’t commonly treated now. The drug’s potential market could exceed $1 billion.
“SGN-40 is an exciting opportunity for the company … and we will continue to focus on aggressively advancing this program,” Siegall told investors in a conference call.
The Bothell company also has two other potential drugs in phase 1 and phase 2 trials. Like SGN-40, they are based on genetically modified antibodies.
With the increased clinical trial activity, which is expensive, Seattle Genetics lost $8.6 million, or 17 cents a share, during the third quarter. That compared to a $6.2 million loss in the same quarter last year.
Operating expenses for the quarter totaled $12.4 million, compared with revenue of $2.4 million. The company’s income comes primarily from technology licensing fees and collaboration payments from other drug development companies.
The company still has considerable cash on hand, with more than $96 million in the bank as of the third quarter’s end.
Reporter Eric Fetters: 425-339-3453 or fetters@heraldnet.com.
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