BOTHELL — Seattle Genetics Inc. will begin a flurry of new clinical trials in the coming months as it moves forward with three different experimental cancer treatments at the same time.
That announcement on Tuesday came alongside news that the Bothell-based biotechnology firm has doubled its revenue from a year ago. Its net loss, however, also grew larger during the latest quarter.
“We are making substantial progress in advancing our pipeline of antibody-based cancer therapies, focused in particular on initiating multiple clinical trials with SGN-40, SGN-33 and SGN-35 over the remainder of 2007 and into early 2008,” said Clay Siegall, Seattle Genetics’ president and chief executive officer.
Between now and next spring, the company hopes to launch five new phase 1 and 2 trials on SGN-40, which is aimed at treating blood cancers, such as non-Hodgkin’s lymphoma and multiple myeloma. In January, biotech giant Genentech struck an agreement with Seattle Genetics to jointly develop the drug candidate.
The start of the additional clinical trials will bring in new milestone payments from Genentech to Seattle Genetics, Siegall said.
Additionally, the company plans to start new studies on SGN-33 and on SGN-35, which is aimed as a treatment against Hodgkin’s disease. The latter is the company’s first drug candidate using patented antibody-drug conjugate technology to enter clinical testing.
With SGN-30 also in clinical trials, the company has aggressively moved all four drug candidates at once through clinical trials toward regulatory approval, should they prove effective. A fifth drug candidate, SGN-70, could enter tests on humans next year as well.
Jason Kantor, an analyst who tracks Seattle Genetics for RBC Capital Markets, said it makes sense for the company to push ahead at full speed, given its partnership with Genentech and the amount of cash it has on hand.
“They are definitely blessed with a large number of clinical and preclinical programs,” he said of Seattle Genetics. “That’s a good thing.”
Financially, the company ended the third quarter in a strong position, Siegall said. Revenue during the quarter totaled $4.6 million, up from $2.4 million in the same period a year ago. For the year to date, the company has brought in $14.6 million, thanks largely to the company’s partnership with Genentech to jointly develop SGN-40.
Operating expenses also have grown, to $21 million in the third quarter, compared to $12.4 million during the prior-year period. The increases were primarily driven by clinical development costs for SGN-40, for which Seattle Genetics is reimbursed by Genentech, as well as development costs for other drug candidates.
That created a net loss for the third quarter of $14.6 million, or 22 cents per share, compared to $8.6 million in the same period in 2006. As of Sept. 30, the company still had $124.2 million in cash and investments.
Before the third-quarter numbers came out, shares of Seattle Genetics rose 7 cents Tuesday to close at $12. The company’s market value is second only to ZymoGenetics Inc. of Seattle among the biotechs based in Washington state.
Reporter Eric Fetters: 425-339-3453 or fetters@heraldnet.com.
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