Seattle Genetics, Inc. (SGEN): A Billion-Dollar Anticancer Technology in the Making

Currently, Adcetris and Kadcyla are the only two approved products based on ADC. Kadcyla was recently approved by the FDA. On the other end, Adcetris posted $36.4 million in sales in the first quarter of 2013, and expects to sales to keep rising this year.

Competition

Seattle Genetics, Inc. (NASDAQ:SGEN) mostly competes with ImmunoGen, Inc. (NASDAQ:IMGN) in developing ADC technology. ImmunoGen has one approved product and nine product candidates in various development stages. ImmunoGen licensed some of the technology that went into creating cancer treatment Kadcyla to Roche’s Genentech.

Kadcyla sales were $19.5 million in the third quarter of 2013 and will increase further with expected US approvals for other indications. Following the FDA approval of Kadcyla for breast cancer on Feb. 22 of this year, ImmunoGen, Inc. (NASDAQ:IMGN) is slated to receive $10.5 million from Roche.

Conclusion

Although this is early days for ADC, the success of the two thus-far approved drugs tells me that this technology is here to stay and prosper.

It has its problems: limited effectiveness for solid tumors, a limited number of anticancer molecules that can use the technology, and side effects resulting from continuous use. However, drug companies like Seattle Genetics, Inc. (NASDAQ:SGEN) are vigorously addressing these issues, and I see more approvals and larger sales and licensing fees coming its way in the future. My optimism is apparently shared by Big Pharma, which is lining up to form partnerships with Seattle Genetics.

The article A Billion-Dollar Anticancer Technology in the Making originally appeared on Fool.com and is written by Dr. Kanak Kanti De.

Dr. Kanak Kanti De has no position in any stocks mentioned. The Motley Fool recommends ImmunoGen and Seattle Genetics. Kanak is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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