Why Are Seagen Shares Sinking Today?

Seagen Inc SGEN reported Q4 revenues of $429.9 million, compared to $601.3 million a year ago, beating the consensus of $407.21 million.

• Collaboration revenues for Q4 FY20 reflected license revenue related to ladiratuzumab vedotin and Tukysa agreements with Merck & Co Inc MRK. 
• Net product sales increased 26% to $369.2 million, primarily attributable to Tukysa and Padcev. 
• Royalty revenues increased 17% to $46 million primarily driven by sales of Adcetris outside the U.S. and Canada by Takeda Pharmaceutical Co Ltd TAK and, to a lesser extent, royalties from Polivy by Roche Holdings AG RHHBY and Blenrep by GlaxoSmithKline plc GSK, which are based on Seagen's technology.
• Related: Seagen's SEA-CD40 Combo Regime Shows Preliminary Antitumor Activity In Pancreatic Cancer.
• The Company posted a Q4 EPS loss of $(0.95), missing the consensus of $(0.82).
• Seagen held $2.2 billion in cash and investments.
• Guidance: For FY22, Seagen expects total sales of $1.66 billion - $1.75 billion, below the consensus of $2.16 billion.
• Outlook includes Adcetris sales of $730 million - $755 million (+5% Y/Y at midpoint), Padcev sales of $435 million - $455 million (+31% Y/Y) and Tukysa sales of $315 million - $335 million (almost flat).
• Price Action: SGEN shares traded 15.8% lower at $119 during after-hours trading on Wednesday.