Immunomedics in up to $2 bln licensing deal with Seattle Genetics
- Author: Zachary Reyes Feb 11, 2017,
Feb 11, 2017, 8:35
The shares were sold at an average price of $57.89, for a total value of $837,378.85. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website.
Seattle Genetics closed down -0.75 points or -1.22% at $60.79 with 5,46,571 shares getting traded on Tuesday. The stock was sold at an average price of $61.54, for a total value of $890,176.10.
Upon completion of the transaction, Immunomedics and Seattle Genetics will each appoint representatives to serve on a Joint Steering Committee (JSC) that will be chaired by a Seattle Genetics representative. (NASDAQ:SGEN) opened at 62.81 on Friday. One of the terms of the deal holds that, for a limited time, Immunogenics can license out its drug to another party if that party offers a higher bid than Seattle Genetics' and the latter company isn't willing to match or surpass the offer.
Seattle Genetics will also be issued a three-year warrant to purchase 8.66 million shares of common stock at the same price, which shall be exercisable when the Company has sufficient authorized shares of common stock to enable the exercise of the warrant. SGEN has recorded a 50-day average of $58.11 and a two hundred day average of $55.93. (NASDAQ:SGEN) traded up 3.61% during midday trading on Thursday, hitting $63.73. While the company didn't disclose how it intends to finance the transaction, it did report $131 million in cash and cash equivalents as of September 30. Seattle Genetics had a negative return on equity of 16.27% and a negative net margin of 27.03%. The firm had revenue of $105.30 million for the quarter, compared to analysts' expectations of $106.49 million. During the same quarter in the previous year, the company posted $-0.21 EPS. Insiders sold a total of 66,965 shares of company stock worth $4,254,779 over the last quarter. On average, equities analysts anticipate that Seattle Genetics, Inc. will post ($0.95) earnings per share for the current year. Also, insider Vaughn B. Himes sold 30,000 shares of the business's stock in a transaction dated Wednesday, December 7th. If you are accessing this news story on another website, it was copied illegally and republished in violation of U.S. & global trademark and copyright laws.
COPYRIGHT VIOLATION WARNING: This news story was first reported by BBNS and is the sole property of of BBNS. The institutional investor acquired 166,461 shares of the company's stock, valued at approximately $8,991,000.
Several analysts have issued reports on SGEN shares. Zacks Investment Research cut Seattle Genetics from a "hold" rating to a "sell" rating in a report on Tuesday, January 17th. RBC Capital Markets set a $80.00 target price on shares of Seattle Genetics and gave the stock a "buy" rating in a research note on Thursday, January 5th.
Ltd said it has added new position to its fund Seattle Genetics by purchasing shares during the most recent quarter end. Finally, Cowen and Company reaffirmed a "hold" rating and issued a $47.00 price target on shares of Seattle Genetics in a research note on Monday, December 12th.