sgen-20210331

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, 2021


☐			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 26, 2021, there were 181,477,076 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, 2021

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	31
Item 4.	Controls and Procedures	31

PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	32
Item 1A.	Risk Factors	32

Item 6.	Exhibits	74

SIGNATURE		76

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, 2021		December 31, 2020
Assets
Current assets:
Cash and cash equivalents	$	373,712	$	558,424
Short-term investments	2,157,444		2,000,996
Accounts receivable, net	335,828		324,988
Inventories	146,591		116,136
Prepaid expenses and other current assets	90,122		61,840
Total current assets	3,103,697		3,062,384
Property and equipment, net	196,761		196,700
Operating lease right-of-use assets	58,124		61,480
Long-term investments	—		100,830
Intangible assets, net	277,986		283,680

Goodwill	274,671		274,671
Other non-current assets	31,746		21,161
Total assets	$	3,942,985	$	4,000,906
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	108,048	$	78,067
Accrued liabilities and other	281,568		310,071

Total current liabilities	389,616		388,138
Long-term liabilities:

Operating lease liabilities, long-term	58,293		61,884
Other long-term liabilities	70,452		62,784
Total long-term liabilities	128,745		124,668
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; 181,323 shares issued and outstanding at March 31, 2021 and 180,902 shares issued and outstanding at December 31, 2020	181		181
Additional paid-in capital	4,414,937		4,356,922
Accumulated other comprehensive income	494		565
Accumulated deficit	(990,988)		(869,568)
Total stockholders’ equity	3,424,624		3,488,100
Total liabilities and stockholders’ equity	$	3,942,985	$	4,000,906

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,
	2021		2020
Revenues:
Net product sales	$	302,588	$	198,514
Royalty revenues	27,219		20,360
Collaboration and license agreement revenues	2,176		15,640
Total revenues	331,983		234,514
Costs and expenses:
Cost of sales	64,135		29,421

Research and development	230,426		195,199
Selling, general and administrative	159,842		122,249
Total costs and expenses	454,403		346,869
Loss from operations	(122,420)		(112,355)
Investment and other income (loss), net	1,000		(56,047)


Net loss	$	(121,420)	$	(168,402)
Net loss per share - basic and diluted	$	(0.67)	$	(0.98)

Shares used in computation of per share amounts - basic and diluted	181,150		172,350


Comprehensive loss:
Net loss	$	(121,420)	$	(168,402)
Other comprehensive income (loss):
Unrealized gain on securities available-for-sale, net of tax	166		3,273
Foreign currency translation loss	(237)		(24)
Total other comprehensive income (loss)	(71)		3,249
Comprehensive loss	$	(121,491)	$	(165,153)

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, 2019	171,994	$	172	$	3,359,124	$	229	$	(1,483,238)	$	1,876,287
Net loss	—	—		—		—		(168,402)		(168,402)
Other comprehensive income	—	—		—		3,249		—		3,249

Issuance of common stock for stock option exercises and employee stock purchase plan	575	1		21,785		—		—		21,786

Restricted stock vested during the period, net	67	—		—		—		—		—

Share-based compensation	—	—		32,698		—		—		32,698
Balances as of March 31, 2020	172,636	$	173	$	3,413,607	$	3,478	$	(1,651,640)	$	1,765,618




























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

SEC Form 10-Q filed by Seattle Genetics, Inc.