Why This Investor Is Selling His Seagen Shares

Having fallen more than 22% over the last month, Seagen Inc SGEN shares are now trading down about 15% year-to-date. With Seagen stock seemingly stuck in a downtrend, Virtus Investment Partners' Joe Terranova decided to cut his position.

"Biotech, in this environment, will continue to struggle," Terranova said Monday on CNBC's "Fast Money Halftime Report."

Seagen is a biotech firm that develops and commercializes therapies to treat cancers. The stock is trading with a "very high valuation" and currently, longer-duration assets are being corrected, Terranova said. 

Seagen is currently trading with a 15.788 price-to-sales ratio, according to data from Benzinga Pro.

From Last Month: Notable Seagen Insider Trades $1.2M In Company Stock

Terranova told CNBC he has risk management disciplines in place and current market conditions put him in a position where he needed to exit the stock.

"Seagen is not proving to be a profitable holding for me," he said.

Seagen is set to highlight new data in advanced breast cancer at the San Antonio Breast Cancer Symposium Dec. 7-10.

SGEN Price Action: Seagen has traded as high as $202.60 and as low as $133.20 over a 52-week period.

The stock was down 2.7% at $146.64 Monday afternoon.

Photo: jarmoluk from Pixabay.