sgen-20220331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2022


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 0-32405

SEAGEN INC.

(Exact name of registrant as specified in its charter)


Delaware						91-1874389
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

21823 30th Drive SE

Bothell, Washington 98021

(Address of principal executive offices, including zip code)

(Registrant’s telephone number, including area code): (425) 527-4000

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.001	SGEN	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of April 25, 2022, there were 184,075,643 shares of the registrant’s common stock outstanding.

Table of Contents

Seagen Inc.

Quarterly Report on Form 10-Q

For the Quarter Ended March 31, 2022

INDEX


		Page
PART I. FINANCIAL INFORMATION (Unaudited)
Item 1.	Condensed Consolidated Financial Statements	3
	Condensed Consolidated Balance Sheets	3
	Condensed Consolidated Statements of Comprehensive Loss	4
	Condensed Consolidated Statements of Stockholders' Equity	5
	Condensed Consolidated Statements of Cash Flows	6
	Notes to Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	15
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	33
Item 4.	Controls and Procedures	34

PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	35
Item 1A.	Risk Factors	35

Item 6.	Exhibits	64

SIGNATURE		66

Table of Contents

PART I. FINANCIAL INFORMATION

Item 1. Condensed Consolidated Financial Statements

Seagen Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands, except par value)


	March 31, 2022		December 31, 2021
Assets
Current assets:
Cash and cash equivalents	$	260,996	$	424,834
Short-term investments	1,690,097		1,735,202
Accounts receivable, net	401,009		389,256
Inventories	275,747		200,663
Prepaid expenses and other current assets	143,406		119,239
Total current assets	2,771,255		2,869,194
Property and equipment, net	214,379		210,073
Operating lease right-of-use assets	54,937		57,889

Intangible assets, net	254,902		260,593

Goodwill	274,671		274,671
Other non-current assets	46,549		47,184
Total assets	$	3,616,693	$	3,719,604
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	87,228	$	114,824
Accrued liabilities and other	444,066		454,030

Total current liabilities	531,294		568,854
Long-term liabilities:

Operating lease liabilities, long-term	53,552		56,665
Other long-term liabilities	33,380		28,946
Total long-term liabilities	86,932		85,611
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.001 par value, 5,000 shares authorized; none issued	—		—
Common stock, $0.001 par value, 250,000 shares authorized; 183,892 shares issued and outstanding at March 31, 2022 and 183,381 shares issued and outstanding at December 31, 2021	184		183
Additional paid-in capital	4,678,392		4,607,816
Accumulated other comprehensive income	424		1,179
Accumulated deficit	(1,680,533)		(1,544,039)
Total stockholders’ equity	2,998,467		3,065,139
Total liabilities and stockholders’ equity	$	3,616,693	$	3,719,604

The accompanying notes are an integral part of these condensed consolidated financial statements.

Table of Contents

Seagen Inc.

Condensed Consolidated Statements of Comprehensive Loss

(Unaudited)

(In thousands, except per share amounts)


	Three Months Ended March 31,
	2022		2021
Revenues:
Net product sales	$	383,086	$	302,588
Royalty revenues	28,181		27,219
Collaboration and license agreement revenues	15,193		2,176
Total revenues	426,460		331,983
Costs and expenses:
Cost of sales	87,626		64,135

Research and development	297,659		230,426
Selling, general and administrative	174,225		159,842
Total costs and expenses	559,510		454,403
Loss from operations	(133,050)		(122,420)
Investment and other (loss) income , net	(2,190)		1,000
Loss before income taxes	(135,240)		(121,420)
Provision for income taxes	1,254		—
Net loss	$	(136,494)	$	(121,420)
Net loss per share - basic and diluted	$	(0.74)	$	(0.67)

Shares used in computation of per share amounts - basic and diluted	183,647		181,150


Comprehensive loss:
Net loss	$	(136,494)	$	(121,420)
Other comprehensive loss:
Unrealized (loss) gain on securities available-for-sale, net of tax	(861)		166
Foreign currency translation gain (loss)	106		(237)
Total other comprehensive loss	(755)		(71)
Comprehensive loss	$	(137,249)	$	(121,491)

The accompanying notes are an integral part of these condensed consolidated financial statements.

Table of Contents

Seagen Inc.

Condensed Consolidated Statements of Stockholders' Equity

(Unaudited)

(In thousands)


	Common stock
	Shares	Amount		Additional paid-in capital		Accumulated other comprehensive income		Accumulated deficit		Total stockholders' equity
Balances as of December 31, 2020	180,902	$	181	$	4,356,922	$	565	$	(869,568)	$	3,488,100
Net loss	—	—		—		—		(121,420)		(121,420)
Other comprehensive loss	—	—		—		(71)		—		(71)

Issuance of common stock for stock option exercises and employee stock purchase plan	341	—		19,791		—		—		19,791

Restricted stock vested during the period, net	80	—		—		—		—		—

Share-based compensation	—	—		38,224		—		—		38,224
Balances as of March 31, 2021	181,323	181		4,414,937		494		(990,988)		3,424,624

SEC Form 10-Q filed by Seagen Inc.