Seagen ($SGEN) - investment in the growing market for new canc | 🚀 Robin Rocket

Seagen ($SGEN) - investment in the growing market for new cancer treatments.

Seagen already has 3 ADC-approved drugs for bladder, breast and lymph cancer. Of these, 2 only started selling in the US in 2020 and could be launched in Europe this year - penetrating is very low and has prospects to expand.

Seagen's revenue could double in 2 years due to the approval of the 4th drug and the improvment of indications already approved.

Seagen directs $1 billion a year to R&D. If these costs are returned by Seagen in the form of $3 billion in revenue per year and most of the investments in research are completed in 5 years, then the profit can grow from -$400 million loss to +$3 billion profit. Then the forward P/E can be ~9 with an average P/E of large pharmaceutical companies ~12-14.

Seagen's revenue from the sale of approved drugs is sufficient to fund research out of its own pocket. In addition, the company has $2.4 billion in cash on its balance sheet.

Fair price of Seagen ($SGEN) shares $246, upside potential +52%.

Not an investment recommendation.