Seattle Genetics Gains On Offering, Analyst View

NEW YORK (AP) — Shares of Seattle Genetics Inc. jumped Wednesday after the company said it is publicly offering $118.2 million in common stock, while a Deutsche Bank-North America analyst initiated positive coverage on the development-stage biotechnology company.

The stock rose 51 cents, or 4.8 percent, to $11.50 in afternoon trading. Shares have traded between $6.81 and $13.40 over the last 52 weeks.

Deutsche Bank-North America analyst Robyn Karnauskas initiated coverage with a "Buy" rating and expects shares to reach $14 over the next 52 weeks.

"With three products potentially on the market by 2013, no patent cliff, and antibody technology, we view Seattle Genetics as one of the more attractive oncology stocks in biotech," Karnauskas said, in a note to investors.

She said SGN-35, aimed at treating the cancer Hodgkin's lymphoma, could have peak sales of $240 million for the indication. The drug is in mid-to-late-stage development, with no partner.

Meanwhile, late Tuesday, the Bothell, Wash.-based company said it is offering 11 million shares of at $10.75 per share. That marks a 2.2 percent discount from Tuesday's closing price of $10.99. Seattle Genetics plans to use proceeds to fund research and development.

The offering is expected to close Aug. 17.