Seagen(SGEN) - 2020 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Total revenues for Q2 2020 were $278 million, driven by record product sales, with a year-to-date total of$513 million [21][5] - Product sales from oncology franchises totaled $240 million, reflecting a 51$198 million in Q2 and $393 million for the first half of 2020, indicating a focus on pipeline investment [24] Business Line Data and Key Metrics Changes - ADCETRIS net sales were$168 million in Q2, with a full-year guidance maintained at $675 million to$700 million [6][25] - PADCEV net sales in the U.S. were $57 million in Q2, a 66$215 million to $235 million [7][25] - TUKYSA generated$16 million in revenue in its first partial quarter post-launch [10] Market Data and Key Metrics Changes - The company reported strong adoption of PADCEV for metastatic urothelial cancer, with ongoing trials to expand its use [8][9] - TUKYSA is being positioned in the market for HER2 positive breast cancer, with approvals in multiple countries [10][11] Company Strategy and Development Direction - The company aims to expand the indications for its commercial brands and is advancing over a dozen early-stage assets in clinical and preclinical development [14] - A virtual R&D day is planned to provide more details on the pipeline and commitment to first-in-class therapies [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory despite challenges posed by the COVID-19 pandemic [5] - Positive feedback from KOLs on clinical data supports the potential for accelerated approvals in various indications [13][90] Other Important Information - The company ended Q2 with 896 million in cash and investments, bolstered by the sale of Immunomedics shares [24] - The company is refining its guidance for R&D expenses to a range of 820 million to $870 million for 2020 [25] Q&A Session Summary Question: Insights on TUKYSA's initial launch - Management noted it is early in the launch but is pleased with the awareness and uptake in both academic and community settings [41][42] Question: Factors affecting PADCEV's guidance - Management indicated that while the initial uptake has been strong, growth rates may slow as the launch progresses, with guidance reflecting a 35% to 55% growth rate in the second half [44][47] Question: Gating factors for BLA filing for TV - Management is actively working towards a BLA submission and is encouraged by the positive data from the pivotal trial [51][54] Question: Initial launch feedback for TUKYSA - There is significant enthusiasm among doctors regarding TUKYSA, and it is being used in both patients with and without brain metastases [58][61] Question: Details on the INNO2VATE trial - The trial is focused on evaluating the role of tisotumab vedotin as a single agent or in combination with other therapies for cervical cancer [67] Question: PADCEV usage in frontline settings - Management confirmed ongoing trials to evaluate PADCEV in combination with KEYTRUDA in frontline metastatic disease [75][78]