Seattle Genetics (NASDAQ: SGEN)

Technical Analysis
Positive Trend
Short-term resistance: ~$77
Current Support: Exponential Moving Average (EMA)

Yahoo! Finance (2019). Stock price graph for Seattle Genetics 01/01/19 to 6/18/19. Retrieved from https://finance.yahoo.com/quote/SGEN?p=SGEN

Seattle Genetics, is a company I see value in. From a technical analysis standpoint, the short term positive uptrend is an attractive characteristic for a short term swing trade. If SGEN continues to be supported by the exponential moving average (EMA), a short term swing trade may result a decent profit. I have not taken a position; however, this company is currently on my watch list. I have currently have an alert at $70 to confirm if the EMA continues to be SGEN’s support. The company currently has an approved product, ADCETRIS® (brentuximab vedotin), and focuses on antibody-drug conjugate technology.

ADCETRIS® (brentuximab vedotin) is a CD30-directed antibody-drug conjugate indicated for treatment of adult patients with:
– Previously untreated Stage III or IV classical Hodgkin lymphoma (cHL), in
combination with doxorubicin, vinblastine, and dacarbazine.
– Classical Hodgkin lymphoma (cHL) at high risk of relapse or progression
as post-autologous hematopoietic stem cell transplantation (auto-HSCT)
consolidation.
– Classical Hodgkin lymphoma (cHL) after failure of auto-HSCT or after
failure of at least two prior multi-agent chemotherapy regimens in
patients who are not auto-HSCT candidates.
– Previously untreated systemic anaplastic large cell lymphoma (sALCL) or
other CD30-expressing peripheral T-cell lymphomas (PTCL), including
angioimmunoblastic T-cell lymphoma and PTCL not otherwise
specified, in combination with cyclophosphamide, doxorubicin, and
prednisone.
– Systemic anaplastic large cell lymphoma (sALCL) after failure of at least
one prior multi-agent chemotherapy regimen.
– Primary cutaneous anaplastic large cell lymphoma (pcALCL) or CD30-
expressing mycosis fungoides (MF) who have received prior systemic
therapy.1

Antibody-drug Conjugates (ADC) Technology
Antibody-drug Conjugates (ADC) consists of a large monoclonal antibody that is conjugated to potent, cytotoxic small molecule drug by a chemical linker. The combination is expected to bring together the benefits of selective binders of specific tumor antigens and highly potent drugs together. There are multiple mechanisms in which ADC exert their action. These include receptor-signaling modulation, cytotoxic payload delivery, and Fc-domain mediated functions such as antibody dependent cellular cytotoxicity (ADCC) and antigen presentation through dendritic cells.2

Image result for adc technology

Mechanism of Action
CD30 is a member of the tumor necrosis factor receptor family and is expressed on the surface of systemic anaplastic large cell lymphoma (sALCL) cells and on Hodgkin Reed-Sternberg (HRS) cells in cHL. CD30 is variably expressed in other T-cell lymphomas. Expression of CD30 on healthy tissue and cells is limited. In vitro data suggest that signaling through CD30-CD30L binding may affect cell survival and proliferation.1

Brentuximab vedotin is an ADC. The antibody is a chimeric IgG1 directed against CD30. The small molecule, MMAE, is a microtubule-disrupting agent. MMAE is covalently attached to the antibody via a linker. Nonclinical data suggest that the anticancer activity of ADCETRIS is due to the binding of the ADC to CD30-expressing cells, followed by internalization of the
ADC-CD30 complex, and the release of MMAE via proteolytic cleavage. Binding of MMAE to
tubulin disrupts the microtubule network within the cell, subsequently inducing cell cycle arrest and apoptotic death of the cells. Additionally, in vitro data provide evidence for antibodydependent cellular phagocytosis (ADCP).1

ADC mechanism of action

REFERENCES:

  1. ADCETRIS® (brentuximab vedotin) for injection [Prescribing Information, 2018]. Seattle Genetics, Inc., Bothell, WA
  2. Nessler I, Khera E, Thurber GM. Quantitative pharmacology in antibody-drug conjugate development: armed antibodies or targeted small molecules? Oncoscience. 2018 Jun 28;5(5-6):161-163.

Disclosure: I have no positions in the stock mentioned. I wrote this article myself, and it expresses my own opinions and not of those of my employer. I am not receiving compensation for it. I have no business relationship with the company whose stock is mentioned in this article.

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