Insider Trading Review: Seattle Genetics, Inc. (SGEN)

Seattle Genetics, Inc. (NASDAQ:SGEN) insider has recently participated in insider trading activity. Director, Orwin John A bought 2,000 shares for $56,660 via one transaction Feb 12. Another notable insider trading was done by HIMES VAUGHN B on Dec 15, who is the        EVP, Proc Svcs & Tech Ops. The insider sold 40,500 shares at an average price of $39.94. Moreover, an insider selling of 3,720 shares was carried out by SIEGALL CLAY B, President and CEO, on Dec 03. Following the transaction, the insider now owns 556,115 shares in total. Director BAKER FELIX bought 181,647 shares for $7,988,259 through one transaction Nov 20. Following this sale, this insider’s stake in the company comprises 33,428,852 shares, priced at $1,059,026,031.36 as of Wednesday.

The stock has experienced a total of 3 insider trades in the past three months. These trades include 2 sell activities and 1 buy trades. Furthermore, over the past 12 months, the stock was traded 58 times by insiders. In 22 of these trades, the insider was a seller while an employee of the company was the buyer in just 36 instances.

Seattle Genetics, Inc. (SGEN) on February 9, 2016 reported financial results for the fourth quarter and year ended December 31, 2015.

Fourth Quarter and Year 2015 Financial Results

Total revenues in the fourth quarter and year ended December 31, 2015 increased to $93.5 million and $336.8 million, respectively, from $74.3 million and $286.8 million for the same periods in 2014. Revenue growth was driven by:

ADCETRIS sales in the fourth quarter were $63.0 million, an increase from $46.5 million in the fourth quarter of 2014. For the year in 2015, ADCETRIS sales were $226.1 million, compared to $178.2 million for the year in 2014, a 27 percent increase.

Royalty revenues in the fourth quarter of 2015 were $12.6 million, compared to $11.9 million in the fourth quarter of 2014. For the year in 2015, royalty revenues were $41.0 million, compared to $40.0 million for the year in 2014. Royalty revenues are primarily driven by international sales of ADCETRIS by Takeda. Royalty revenues in 2014 included a $5.0 million one-time sales milestone payment from Takeda.

Amounts earned under the company’s ADCETRIS and ADC collaborations totaled $17.9 million in the fourth quarter and $69.8 million for the year in 2015, compared to $16.0 million and $68.6 million for the same periods in 2014.

Total costs and expenses for the fourth quarter of 2015 were $118.6 million, compared to $102.1 million for the fourth quarter of 2014. For the year in 2015, total costs and expenses were $457.8 million, compared to $364.1 million for the year in 2014. The increase in 2015 costs and expenses was primarily driven by investment in Seattle Genetics’ pipeline programs.

“In 2015, we demonstrated significant progress across our corporate priorities. For ADCETRIS, we achieved record sales in the fourth quarter and for the year, received FDA approval for an expanded label, completed enrollment in two of three ongoing phase 3 trials and continued our efforts to establish ADCETRIS as the foundation of care for CD30-expressing lymphomas,” said Clay Siegall, Ph.D., President and Chief Executive Officer of Seattle Genetics.