Seattle Genetics sold more than 8 million shares in a stock offering that brought in $575 million for the company before expenses and commissions.
The Bothell, Wash.-based drugmaker said the money would fund several endeavors, such as expanding the sales of Adcetris, a drug for lymphoma cancers that brings in the majority of the company’s revenues and is sold in the U.S. and Canada. The stock offering will also fill the coffers used to develop enfortumab vedotin, a drug for metastatic urothelial cancer that was submitted to the FDA for approval last week, as well as for other research and development.
The company’s stock fell 9 percent Wednesday morning following news of the offering, from $76 per share to $69 per share. It later recovered to $73.50. Shares were up slightly Friday morning.
The company last week posted $218 million in Q2 revenue, versus $170 million for the same period last year. Losses in the quarter rose to $79 million, or $0.49 per share. Its stock rose more than 8 percent following the Q2 earnings report, and is up 30 percent this year.
Seattle Genetics spent $322 million on research and development in the first half of 2019, and ended the second quarter with $376 million in cash and investments.
On a recent earnings call, chief commercial officer Robin Taylor said the company is “actively preparing for the commercial launch of enfortumab vedotin” and has hired the corresponding sales force.
The drugmaker last tapped the public markets at the start of 2018, when it sought to raise $690 million shortly after announcing plans to acquire Cascadian Therapeutics for $614 million. It went public in 2001.
Editor’s note: This article was updated to reflect the amount raised following the completion of the stock offering on Friday, July 26.