Seattle Genetics Inc., maker of the Hodgkin lymphoma drug Adcetris, is trading at its highest level in more than two months after reporting positive data from additional studies on the medicine.
The drugmaker gained 6 percent to $19.61 at the close in New York, its biggest single-day increase since Nov. 30 and its highest price since Nov. 3. Shares have jumped 15 percent in the past 12 months.
Adcetris was approved in August for patients with Hodgkin lymphoma for whom other therapies have failed, the first new medicine cleared by U.S. regulators for the disease since 1977. The drug had a 65 percent response rate according to interim results of a Phase 2 clinical trial of patients with cutaneous T-cell lymphoma, the company said yesterday at a medical meeting in San Francisco. Three stages of clinical trials are usually required for U.S. regulatory approval.
The potential for Adcetris in indications outside its approved use is being underestimated, Jason Kantor, an analyst with RBC Capital Markets in San Francisco, wrote in a note to clients. “This and other future data releases should begin to spur off-label use” of the drug.
Adcetris, known chemically as brentuximab, is Seattle Genetics’s first product. Sales of the medicine may surpass $275 million in 2014, according to the average estimate of three analysts surveyed by Bloomberg.