Seagen(US:SGEN)2023-02-15 22:18Financial Position - As of December 31, 2022, the total assets of Seagen Inc. were $3,674.5 million, a slight decrease from $3,719.6 million in 2021[462] - The company's cash and cash equivalents decreased to $319.9 million in 2022 from $424.8 million in 2021, representing a decline of approximately 24.6%[462] - Short-term investments also decreased to $1,415.1 million in 2022 from $1,735.2 million in 2021, a reduction of about 18.4%[462] - The total stockholders' equity decreased to $2,803.8 million in 2022 from $3,065.1 million in 2021, a decline of approximately 8.5%[462] - Cash, cash equivalents, and restricted cash at the end of 2022 were $323,486,000, down from $424,834,000 at the end of 2021[472] - As of December 31, 2022, total cash, cash equivalents, and restricted cash amounted to $323.5 million, a decrease from $424.8 million in 2021[485] - The gross carrying value of finite-lived intangible assets was $305.7 million as of December 31, 2022, with accumulated amortization of $68.1 million[492] - The total deferred tax assets, net of valuation allowance, decreased to $15.4 million in 2022 from $19.3 million in 2021[564] Revenue and Sales - Total revenues for 2022 were $1,962,412,000, an increase of 24.6% from $1,574,371,000 in 2021[464] - Net product sales reached $1,706,516,000 in 2022, up 23.1% from $1,385,566,000 in 2021[464] - ADCETRIS sales were $839.3 million in 2022, a 19.0% increase from $705.6 million in 2021[537] - PADCEV sales increased to $451.4 million in 2022, representing a 32.8% growth from $339.9 million in 2021[537] - TUKYSA sales were $353.1 million in 2022, a slight increase from $334.0 million in 2021[537] Expenses - Research and development expenses increased to $1,344,361,000 in 2022, compared to $1,228,672,000 in 2021, reflecting a growth of 9.4%[464] - Total costs and expenses for 2022 were $2,575,382,000, up from $2,256,427,000 in 2021, marking a rise of 14.2%[464] - The company reported share-based compensation of $221,297,000 in 2022, an increase from $173,117,000 in 2021[472] - Advertising expenses totaled $114.1 million in 2022, up from $88.8 million in 2021[512] Net Loss - The net loss for 2022 was $610,308,000, an improvement from a net loss of $674,471,000 in 2021[464] - Net loss per share (basic and diluted) for 2022 was $3.30, compared to $3.70 in 2021[464] - The company reported a net loss of $610.3 million for the year ended December 31, 2022, compared to a net loss of $674.5 million in 2021[619] Taxation - The company recorded a tax expense of $8.0 million for 2022, primarily due to taxable profits in the U.S.[559] - The effective tax rate for 2022 was -1.3%, compared to 0.2% in 2021, indicating a shift in tax liabilities[557] - Unrecognized tax benefits rose to $35.2 million in 2022 from $30.3 million in 2021, indicating an increase in uncertainties regarding tax positions[567] Investments and Interest Rates - A hypothetical increase in interest rates by one percent would reduce the fair value of the investment portfolio by $2.4 million as of December 31, 2022[442] - Management estimates a hypothetical decrease of 10% in the effective yield of investments would reduce expected investment income by $4.3 million over the next twelve months[442] - Fair value of short-term investments in U.S. Treasury securities decreased to $1.4 billion in 2022 from $1.7 billion in 2021, a decline of about 19.0%[549] - Total investment and other income, net for 2022 was $10.7 million, compared to $6.4 million in 2021, representing a year-over-year increase of approximately 67.5%[552] Liabilities - The accrued liabilities and other current liabilities rose to $610.6 million in 2022, compared to $454.0 million in 2021, marking an increase of about 34.5%[462] - The company has future obligations related to supply agreements totaling $425.8 million as of December 31, 2022[601] Collaborations and Agreements - The company is focused on advancing a pipeline of novel therapies for solid tumors and blood-related cancers, utilizing its antibody-drug conjugate technology[474] - Collaboration revenues from Takeda for ADCETRIS include royalties based on net sales, with percentages ranging from the mid-teens to mid-twenties[573] - The LV Agreement with Merck included an upfront cash payment of $600 million and potential milestone payments up to $2.6 billion based on clinical trials and sales thresholds[581] - The company entered into a licensing agreement with RemeGen for disitamab vedotin, with an upfront payment of $200 million and potential milestone payments of up to $2.2 billion[593] Stock and Equity - The company recorded $749.9 million in stockholders' equity following the issuance of 5,000,000 shares to Merck at $200 per share, totaling $1.0 billion in proceeds[615] - As of December 31, 2022, the company had 14,870 thousand shares reserved for future issuance, including stock options and RSUs[617] - The weighted average exercise price of stock options outstanding as of December 31, 2022, was $92.62, with 5,417,087 shares remaining[630] Legal Matters - The company is engaged in legal disputes with Daiichi Sankyo regarding ownership of certain technology, with a potential liability estimated between $14 million and $58 million[609] - Daiichi Sankyo incurred $41.8 million in damages for patent infringement related to the '039 Patent from October 20, 2020, to March 31, 2022[613]