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Seattle Genetics Reports Fourth Quarter And Year 2012 Financial Results

Research and development expenses are expected to be in the range of $210 million to $230 million. Selling, general and administration expenses are expected to be in the range of $85 million to $95 million. Operating expenses will be directed primarily towards commercialization and clinical trials of ADCETRIS, development and clinical activities for SGN-75, ASG-5ME, ASG-22ME and SGN-CD19A, and IND-enabling activities for SGN-CD33A and SGN-LIV1A. Cost of sales is expected to be approximately $15 million for the year in 2013, representing a range of 10 percent to 12 percent of net sales. Non-cash expenses are expected to be approximately $40 million in 2013, primarily attributable to share-based compensation expense.

Conference Call Details

Seattle Genetics’ management will host a conference call and webcast to discuss the financial results and provide an update on business activities. The event will be held today at 1:30 p.m. Pacific Time (PT); 4:30 p.m. Eastern Time (ET). The live event will be available from Seattle Genetics’ website at www.seattlegenetics.com, under the Investors and News section, or by calling (877) 941-6009 (domestic) or (480) 629-9818 (international). The access code is 4594357. A replay of the discussion will be available beginning at approximately 3:30 p.m. PT today from Seattle Genetics’ website or by calling (800) 406-7325 (domestic) or (303) 590-3030 (international), using access code 4594357. The telephone replay will be available until 4:00 p.m. PT on Friday, February 15, 2013.

About Seattle Genetics

Seattle Genetics is a biotechnology company focused on the development and commercialization of monoclonal antibody-based therapies for the treatment of cancer. The company’s lead program, ADCETRIS (brentuximab vedotin), received accelerated approval from the U.S. Food and Drug Administration in August 2011 and approval with conditions from Health Canada in February 2013 for two indications. In addition, under a collaboration with Millennium: The Takeda Oncology Company, ADCETRIS received conditional approval from the European Commission in October 2012. Seattle Genetics also has four other clinical-stage ADC programs: SGN-75, ASG-5ME, ASG-22ME and SGN-CD19A. Seattle Genetics has collaborations for its ADC technology with a number of leading biotechnology and pharmaceutical companies, including Abbott, Agensys (an affiliate of Astellas), Bayer, Celldex Therapeutics, Daiichi Sankyo, Genentech, GlaxoSmithKline, Millennium, Pfizer and Progenics, as well as ADC co-development agreements with Agensys and Genmab. More information can be found at www.seattlegenetics.com.

Certain of the statements made in this press release are forward looking, such as those, among others, relating to the company’s expectations for initiation of future clinical trials, data availability from ongoing clinical trials, expectations for additional regulatory approvals and expectations for revenue and expenses for the year 2013. Actual results or developments may differ materially from those projected or implied in these forward-looking statements. Factors that may cause such a difference include sales of ADCETRIS may not be as expected or expenses may exceed current projections. We may also be delayed in our planned trial initiations and regulatory submissions and approvals for reasons outside of our control. We may also fail to receive milestone payments under our collaborations. In addition, if we do not meet our financial guidance or the expectations of analysts or investors, our stock price may be adversely impacted. More information about the risks and uncertainties faced by Seattle Genetics is contained in the company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2012 filed with the Securities and Exchange Commission. Seattle Genetics disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
 
Seattle Genetics, Inc. Condensed Consolidated Balance Sheets(Unaudited)(In thousands)
   
December 31, 2012 December 31, 2011
Assets
Cash, cash equivalents and short term investments $ 364,258 $ 330,696
Other assets   107,164   94,520
Total assets $ 471,422 $ 425,216
 
Liabilities and Stockholders' Equity
Accounts payable and accrued liabilities $ 56,130 $ 53,048
Deferred revenue and long-term liabilities 189,144 153,319
Stockholders' equity   226,148   218,849
Total liabilities and stockholders' equity $ 471,422 $ 425,216
 
 
Seattle Genetics, Inc. Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except per share amounts)
 
  Three months ended December 31,   Years ended December 31,
2012   2011 2012   2011
Revenues
Net product sales $ 35,355 $ 33,194 $ 138,200 $ 43,241
Collaboration and license agreement revenues 26,428 15,693 67,547 51,537
Royalty Revenues   2,129     -     5,065     -  
Total revenues   63,912     48,887     210,812     94,778  
Costs and expenses
Cost of sales 2,738 2,391 11,546 3,115
Cost of royalty revenues 808 - 1,923 -
Research and development 47,663 40,239 170,297 163,396
Selling, general and administrative   23,411     24,954     84,300     72,659  
Total costs and expenses   74,620     67,584     268,066     239,170  
Loss from operations (10,708 ) (18,697 ) (57,254 ) (144,392 )
Investment and other income (loss), net   112     (8,468 )   3,472     (7,638 )
Net loss $ (10,596 ) $ (27,165 ) $ (53,782 ) $ (152,030 )
 
Basic and diluted net loss per share $ (0.09 ) $ (0.24 ) $ (0.46 ) $ (1.34 )
 

Weighted-average shares used in computing basic and diluted net loss per share
  119,310     115,064     117,851     113,098  
 

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