What happened
Shares of Seagen (SGEN) were soaring 11.4% higher at 11:28 a.m. ET on Thursday. The big jump came after the biopharmaceutical company reported its 2022 full-year and fourth-quarter results following the market close on Wednesday.
Seagen announced fourth-quarter revenue of $528 million, up from $430 million in the prior-year period. The company posted a net loss in Q4 of $148 million, or $0.80 per diluted share. However, this result was narrower than the net loss of $175 million, or $0.95 per share, recorded in the fourth quarter of 2021. It also was better than the consensus estimate of a Q4 net loss of $1.04 per share.
The company also provided guidance for full-year 2023. Seagen expects revenue of between $2.14 billion and $2.24 billion. The midpoint of the range reflects a year-over-year increase of 9.5%.
Seagen's Q4 results and outlook led at least a couple of Wall Street analysts to become more bullish about the biotech stock. Raymond James analysts upgraded Seagen from outperform to strong buy. Evercore ISI upgraded the stock from in line to outperform and raised the price target from $140 to $175.
So what
Should investors buy Seagen just because the company delivered good quarterly results and analysts' expectations have risen for the stock? No. However, the reasons underlying the results and Wall Street's enthusiasm are worthy of consideration.
Seagen's outlook is definitely improving. Sales of cancer drugs Adcetris and Padcev are picking up. Newer cervical cancer therapy Tivdak is also gaining momentum.
Now what
The company could have more good news right around the corner. The U.S. Food and Drug Administration is scheduled to complete its review of approval of Padcen in combination with Merck's Keytruda as a first-line treatment for urothelial cancer by April 21, 2023.
