Bank of America Merrill Lynch Discusses Seattle Genetics After FDA Briefing

Bank of America Merrill Lynch is out with a research report on Seattle Genetics SGEN following comments from an FDA briefing. It has a Buy rating and a $22 price target on shares. In a note to clients, Bank of America Merrill Lynch writes, "The FDA released this morning briefing documents for SGEN's lymphoma drug Adcetris ahead of the scheduled oncology advisory meeting July 14 that support the consensus view that Adcetris will receive FDA approval by the August 30 PDUFA date. The main questions for the committee will be to discuss approval recommendations under accelerated approval statutes or regular approval, as well as the design of future confirmatory studies. The risk-reward on SGEN shares is skewed to the downside if a series of issues discussed below go negatively for the company, although we are optimistic given the robust clinical activity that the panel will vote favorably for Adcetris." Shares of SGEN are down 82 cents to $19.72, a loss of 3.9%.