Seagen's Positive Trial Outcomes: Analyst Says The Update Might Double Tukysa's Current Market

Earlier today, Seagen Inc SGEN announced that the Phase 3 HER2CLIMB-02 clinical trial of Tukysa (tucatinib) in combination with the antibody-drug conjugate ado-trastuzumab emtansine (Kadcyla) met its primary endpoint of progression-free survival (PFS). 

Analysts Andy Hsieh and Alexandra Ramsey from William Blair previously indicated that positive outcomes from the HER2CLIMB-02 trial might strengthen Tukysa's role in the treatment sequence after Enhertu, potentially doubling its current market. They maintain an "Outperform" rating on Seagen shares. 

As an sBLA is submitted and gains regulatory approval, it could enhance Tukysa's revenue. 

This combination approach changes the dynamic between Tukysa and Kadcyla from competitors to collaborators. Detailed trial data are anticipated and likely to be presented at the European Society for Medical Oncology. 

While Tukysa holds potential growth opportunities, Seagen's stock price in the upcoming year will largely hinge on the FTC's decision regarding Pfizer Inc's PFE proposed acquisition.

Seagen's share performance until the close of the Pfizer acquisition in late 2023 or early 2024 will be driven primarily by regulatory interactions, specifically related to the FTC.

Price Action: SGEN shares are down 0.36% at $193.50 on the last check Wednesday.