Ahead of the Bell: Seattle Genetics shares jump

AP News
Posted: Aug 22, 2011 8:41 AM
Ahead of the Bell: Seattle Genetics shares jump

Federal regulators delivered a broader-than-expected approval for the Seattle Genetics Inc. cancer drug Adcetris, according to a Jefferies analyst.

On Friday, the Food and Drug Administration approved Adcetris to treat Hodgkin's lymphoma and systemic anaplastic large cell lymphoma. The FDA approved the drug for patients who have already tried treating their disease with a bone marrow transplant or multiple rounds of chemotherapy. The drug was approved under an accelerated, six-month system reserved for therapies that show promising early results.

Adcetris uses a targeted antibody to deliver the injectable drug directly to cancerous tumor cells, sparing healthy cells.

Jefferies analyst Thomas Wei said in a research note the Hodgkin's lymphoma indication is broader than expected and includes transplant eligible patients.

"We believe the Street has underestimated the market opportunity for Adcetris," Wei wrote.

Wei said Seattle Genetics shares had been under pressure due in part to concern about a potential delay in the drug's approval.

The Seattle biotech drugmaker will market Adcetris in the U.S. and Canada, while Takeda Group holds marketing rights for the rest of the world.

Shares of Seattle Genetics climbed 7.1 percent, or $1.06, to $16.10 in Monday premarket trading.