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Truist Securities launched its protection on Seagen Inc. (NASDAQ:SGEN) on Monday with a Maintain score and a Avenue low goal, noting that the consensus estimates don’t adequately mirror the competitors for biotech’s most cancers therapies.
The worth goal of $135, which, in line with the analyst Asthika Goonewardene displays the “aggressive pressures & market measurement/timing” is the bottom per the info compiled by Bloomberg.
The analyst argues that Steet is underestimating the market headwinds for Tukysa, a tyrosine kinase inhibitor Segen (SGEN) markets with Merck (MRK).
Particularly, rival most cancers remedy Enhertu developed by AstraZeneca (AZN) and Daiichi Sankyo (OTCPK:DSKYF) (OTCPK:DSNKY) “will lead it to overlook consensus expectations as SGEN launches the drug in new indications,” Goonewardene added.
The analyst additionally thinks that “Avenue has not appropriately factored the market measurement or timing for Tivdak,” an antibody-drug conjugate Seagen (SGEN) co-develops with Danish biotech Genmab (GMAB).
Moreover, there are components adversely impacting the demand for bladder most cancers remedy, Padcev, the analyst, identified. Utilizing enter from physicians, Goonewardene famous modifications to dosing and higher-than-expected market share features for Gilead’s (GILD) rival remedy, Trodelvy, as causes for his view.
Seagen (SGEN) is unlikely to draw the curiosity of Merck (MRK) or different patrons, given its new management, the analyst added, anticipating its M&A premium to say no. Seagen (SGEN) shares jumped in June amid studies of an imminent buyout take care of Merck (MRK), a transaction that has but to materialize.
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