Unlike its peers, Seattle Genetics, Inc. (NASDAQ:SGEN) has recognized significant revenues from the sale of its only approved drug, Adcetris. Adcetris was approved in 2011 as a second-line treatment for Hodgkin lymphoma, and put up $33.9 million in US and Canadian sales in the most recent quarter, a slight drop from the same period last year. Millenium Pharmaceuticals has commercialization rights abroad. Additionally, Seattle Genetics, Inc. (NASDAQ:SGEN) is seeking to expand the label for Adcetris with Phase 3 trials using the drug as front-line treatment for Hodgkin and T-cell lymphoma, and a Phase 2 trial for non-Hodgkin lymphoma.
Celldex Therapeutics, Inc. (NASDAQ:CLDX)
Celldex Therapeutics, Inc. (NASDAQ:CLDX) has chosen to take a different approach to both its science and its business model. I recently wrote a piece detailing the principles and excitement behind Celldex’ glioblastoma drug, rindopepimut. Rather than target cancer cells directly, Celldex’ ‘Antigen Presenting Cell’ directed immunotherapy uses antibodies targeted against receptors on dendritic cells. These antibodies are tethered to segments of ‘antigen’ that appear on the surface of cancer cells. Dendritic cells internalize the antibody/antigen complex, and use the antigen to train T-cells to specifically attack cancerous tissue.
On the business side, Celldex Therapeutics, Inc. (NASDAQ:CLDX) has chosen to function more independently than its peers, though it is involved in a promising collaboration with Seattle Genetics for breast cancer drug CDX-011. Celldex hasn’t yet recognized positive operating cash flow, but a $114 million capital raise in the last quarter should provide enough cash to complete trials for rindopepimut. With just a $1.3 billion market cap (as of June 12) and full ownership of its lead drug candidate, Celldex Therapeutics, Inc. (NASDAQ:CLDX) may be a more likely takeover target than its peers. Companies boasting promising PD-1 inhibitors may choose to explore Celldex’ targeted approach in concert with PD-1 treatment, and would be entitled to full revenues from any marketed drugs.
The big picture…
…is actually a series of small pictures lumped under the cancer umbrella. The sheer diversity of cancer subtypes and causes makes a single cure impossible. The targeted therapeutics in development by these companies may find a niche among the broader scope of PD-1 inhibitors. Moreover, the therapeutic platforms developed by each of these companies is flexible enough for continuous innovation and adaptation – a necessary component of successful financial growth.
Celldex Therapeutics, Inc. (NASDAQ:CLDX)’s platform is likely the most flexible, as it relies on antigen isolation as opposed to isolation and subsequent antibody design. Seattle is the farthest along in terms of development, with Adcetris approval and continued label expansion. It remains to be seen, though, if tumor-directed drug delivery (Immunogen and Seattle Genetics, Inc. (NASDAQ:SGEN)) or immune cell-mediated treatment (Celldex Therapeutics, Inc. (NASDAQ:CLDX)) is more effective. For patients and investors, here’s to hoping all three find continued success.
Seth Robey has no position in any stocks mentioned. The Motley Fool recommends ImmunoGen and Seattle Genetics.
The article A Trio of Cancer Immunotherapy Innovators originally appeared on Fool.com.
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