Generated $9.5 million from Genentech to renew exclusive licenses to specific targets and extend the research term under the parties' existing ADC collaboration Achieved milestones under ADC collaboration with Genentech, including a milestone triggered by its submission of an Investigational New Drug (IND) application with the FDA for an ADC utilizing Seattle Genetics' technology for the treatment of cancer

First Quarter 2010 Financial Results

As of March 31, 2010, Seattle Genetics had $331.1 million in cash and investments, compared to $287.7 million as of December 31, 2009. The increase reflects a $60 million upfront payment from the company's brentuximab vedotin collaboration with Millennium: The Takeda Oncology Company and a $12 million upfront payment from the company's ADC collaboration with GlaxoSmithKline.

Revenues in the first quarter of 2010 were $46.5 million, up from $9.1 million in the first quarter of 2009. The increase in revenues was driven by the earned portion of payments received under the company's dacetuzumab (SGN-40) collaboration with Genentech, which will end in June 2010. As previously disclosed, revenues in the first half of 2010 are expected to reflect an estimated $70 million related to the dacetuzumab collaboration, approximately $40 million of which was recognized in the first quarter of 2010. These revenues are mostly attributable to cash amounts already received under the collaboration.

Total operating expenses for the first quarter of 2010 were $35.5 million, compared to $37.4 million for the first quarter of 2009. Brentuximab vedotin development costs incurred by Seattle Genetics are included in research and development expense, but joint activities are reimbursed by Millennium on a 50:50 basis under the collaboration. Non-cash, share-based compensation expense for the first quarter of 2010 was $3.2 million, compared to $2.7 million for the same period in 2009.

Net income for the first quarter of 2010 was $11.5 million, or $0.11 per share, compared to a net loss of $27.3 million, or $0.33 per share, for the first quarter of 2009.

SOURCE Seattle Genetics