Sometimes One Is Enough
• Biotechs often lose money for the first decade or
more of their existence.
• Going from no revenue to any revenue can drive
stock price higher.
• Adcetris approved by FDA in 2011 to treat Hodgkin
lymphoma and anaplastic large cell lymphoma after
prior treatment failure.
• Sold outside U.S. and Canada by partner Takeda
• Receives revenue from partners
that use Seattle Genetics’
technology to develop their drugs.
Source: Seattle Genetics
• Xtandi approved by FDA in 2012 to treat prostate
cancer that has spread and has not responded to
• Sold in U.S. with Astellas Pharma
• Outside U.S., Astellas pays
royalty from the low teens
to the low twenties on
aggregate net sales of Xtandi
• Not technically a one-drug company, but other
drugs added just $4 million in the third quarter.
• Eylea, which treats macular degeneration,
contributed $363 million.
• Sold by Bayer HealthCare outside the U.S. where
Regeneron gets half the
Source: Regeneron Pharmaceuticals
Company Date of
Seattle Genetics August 19, 2011 201%
Medivation August 31, 2012 61%
Regeneron November 18, 2011 465%
Check Out These Returns
Returns through January 29, 2014.
Biotechs Hoping to Be 1-Drug Wonders
• Chelsea Therapeutics (NASDAQ: CHTP)
– Developing Northera for neurogenic orthostatic
hypotension (dangerously low blood pressure)
– FDA decision expected by February 14, 2014
• MannKind (NASDAQ: MNKD)
– Developing inhaled insulin Afrezza for diabetics
– FDA decision expected by April 15, 2014
• Durata Therapeutics (NASDAQ:DRTX)
– Developing Dalvance for bacterial skin infections
– FDA decision expected by May 26, 2014