Summary of Seagen (SGEN) Conference Call on April 29, 2025 Company and Industry Overview - **Company**: Seagen (SGEN) - **Industry**: Oncology and Pharmaceutical Collaborations Key Points and Arguments 1. **Collaboration with Merck**: Seagen announced two significant collaborations with Merck, focusing on the development and commercialization of ladiratuzumab vedotin (LV) and TUKYSA, with a 50-50 cost and profit sharing agreement for LV worldwide [5][6][7] 2. **Financial Terms**: Seagen will receive an upfront payment of $600 million for LV and $125 million for TUKSA, along with a $1 billion equity investment from Merck at $200 per share. The total potential payments across both collaborations could reach approximately $4.5 billion [5][6][8] 3. **Clinical Development**: LV is currently in Phase I and II trials for breast cancer and other solid tumors, showing promising antitumor activity. The focus is on optimizing dosing schedules, particularly weekly administration [8][9][10] 4. **TUKYSA Commercialization**: TUKYSA is approved in five countries for HER2 positive breast cancer and is expected to expand its market presence in Asia, the Middle East, and Latin America through Merck's established commercial capabilities [11][12][13] 5. **Strategic Benefits**: The collaboration with Merck is expected to enhance the development and commercialization of both drugs, leveraging Merck's expertise in solid tumor clinical development and its global commercial presence [6][7][10] 6. **Regulatory and Market Expansion**: Seagen is actively building its international capabilities, with over 100 staff in Europe to support TUKYSA's launch in Canada and Europe. The EMA is currently reviewing TUKYSA's EU marketing authorization application [12][13] 7. **Pipeline Development**: Seagen has a robust pipeline with over a dozen drugs in development, including ADCETRIS, PADCEV, and TUKYSA. The company aims to expand its commercial drug portfolio significantly [15][43][46] 8. **Future Collaborations**: Seagen is open to future collaborations and acquisitions, focusing on expanding its global footprint and enhancing its pipeline with innovative ADCs and other cancer therapies [28][90][92] Additional Important Content 1. **Risk Factors**: The call highlighted potential risks, including the ability to close Merck's equity investment and uncertainties related to pharmaceutical development and regulatory approval processes [3] 2. **Market Potential**: The collaboration is expected to address significant patient populations, particularly in breast and gastric cancers, with a focus on optimizing treatment regimens [104][105] 3. **No Standstill Provisions**: The agreement does not include any standstill provisions that would limit Merck's ability to increase its stake in Seagen in the future [51] 4. **Biomarker Development**: Seagen has developed a biomarker for LIV1, which is highly expressed in various solid tumors, allowing for broader treatment opportunities [67][68] This summary encapsulates the key discussions and strategic directions outlined during the conference call, emphasizing Seagen's collaborations, financial outlook, and future growth potential in the oncology sector.

Financial Performance - Total Q3 revenues reached $1.1 billion[7] - Net product sales hit a record $267 million, a 60% increase over 3Q19[7, 14] - Collaboration & license agreement revenues surged to $758.3 million, primarily due to $725 million in upfront payments from Merck[22] - ADCETRIS U S and Canada net product sales guidance is $650 to $660 million[27] - Royalty revenues guidance increased to $125 to $130 million[27] Product Updates - PADCEV and TUKYSA contributed to net product sales growth[22] - PADCEV data supports global registrations and expanded U S indication[8] - TUKYSA is expanding capabilities to support launch in Europe, with MAA under review[8] - Tisotumab vedotin BLA submission planned under FDA accelerated approval pathway[8] Clinical Trial Data - EV-301 trial showed a hazard ratio of 0.70 (P=0.001) for overall survival and 0.61 (P<0.00001) for progression-free survival with PADCEV[34] - EV-201 Cohort 2 trial showed a 52% objective response rate with PADCEV[34] - Tisotumab Vedotin showed a confirmed ORR of 24%[42] Strategic Collaborations - Received $1.8 billion under Merck collaborations, including upfront payments and prepaid R&D in Q3, and a $1 billion equity investment closed in Q4[7] - Granted Merck exclusive license to commercialize TUKYSA outside U S, Canada, and Europe[8] - Signed worldwide co-development and commercialization agreement with Merck for ladiratuzumab vedotin[8]