Lymphoma Drug Success Can’t Save Seattle Genetics’ Stock

Despite the fact that a regulatory panel recommended approval for Seattle Genetics cancer drug, Adcetris, the company’s stock fell on Friday. Experts agree that concerns and doubts about testing that will ultimately be required to get the drug on the market is what led to the dip in price.

Last Thursday, the Food and Drug Administration (FDA) recommended that a quicker and more efficient review be conducted of Adcetris – treatment for two particularly rare forms of lymphoma. Assuming that this faster-than-usual review takes place, Seattle Genetics will be alleviated of some testing and traditionally required tasks, which in turn, could allow the FDA to make a decision on the drug by the end of August.

The reason that this drug is getting so much attention, mind you, is because of its role in treating Hodgkin’s patients who have not responded well to chemotherapy and stem cell transplants, along with patients who deal with systemic anaplastic large cell lymphoma that has come back despite other treatments.

"Some investors may be disappointed the FDA did not consider a broader indication including second-line pre-transplant Hodgkin's lymphoma," Wei said, because a broader approval would allow the Seattle Genetics to market the drug to more people.