Seattle Genetics (SGEN)
is surging higher this morning even as the overall markets are sharply lower. Seattle Genetic shareholders can thank RBC Capital for the surge in the share price today, up $1.00 or about 5.43% at this time.
This morning RBC Capital raised their 2011 sales forecast for Adcetris, the flagship therapy for Seattle Genetics, the darling of the biotech industry right now. RBC Capital surveyed doctors on the use of Adcetris, and based on those survey results, the firm raised its 2011 Adcetris sales forecast to $18M. This is much higher than the street’s consensus estimate of $10M for 2011.
More importantly, RBC Capital noted that a very large percentage (71% ) of the doctors it surveyed expect Adcetris to become a first-line treatment. A first line treatment would no doubt guarantee financial success for Adcetris and for Seattle Genetics therapeutic technologies. Based on these results, RBC maintains a rating of Outperform on Seattle Genetics (SGEN) stock.