Clay Siegall is committed to the global market. In February, he made a bid to spend $2 billion for acquiring worldwide rights for commercializing a drug for cancer treatment. This has been developed by Immunomedics that is located in New Jersey. But this deal could not be closed due to an ongoing struggle for control of the Board of Immunomedics. Nevertheless, this effort of Clay Siegall signaled the commitment of Seattle Genetics of making use of its deep knowledge of oncology in order to acquire selling rights to new drugs and being able to take these to the global markets.
Currently, Seattle genetics is on a growth trajectory. Its sales were about $418 million in 2016. This was 46 percent more than that of 2014. Its stock prices have tripled in the past five years. It was $20 a share, and now it is $66 a share. This 18-year-old company is still not profitable, but its recent successes have managed to enhance its valuation by over 50 percent during the last year itself.
Analysts feel that this rise in valuation is also a reflection on its future buyout. Many others are of the opinion that this kind of heavy investment being done by the company in doing research on several important drugs is enough to justify this type of appraisal. All this reflects its ambitions clearly. It has boosted its spending on research to $376 million, which is 64 percent more than what it was in 2014.
The focus of Seattle Genetics has mostly been on a kind of drug which is an antibody-drug conjugate, also called ADC. These are drugs that tend to target antigens, which are protein molecules that help in producing antibodies. In case of Hodgkin lymphoma and certain other diseases, these attach themselves to the outside of cancer cells in order to deliver a toxin inside the cells and kill them. In this way, they are able to kill cancer cells without harming the normal tissue. Such an approach will help in reducing the collateral damage which tends to occur in healthy cells in case of traditional chemotherapy as well as radiation.
Clay Siegall has revealed that there are 11 drugs currently in the Seattle Genetics pipeline. Out of these, Clay Siegall sees big potential in case of four of these, in terms of the most immediate sales. Adcetris is the most important amongst these.