What makes SGEN even more compelling is the vertical integration of SGEN's whole proprietary process from receptor ( CD30, CD70, etc. ) identification through final ADC synthesis.
What I mean by "vertical integration" is that, given any appropriate cell surface receptor, SGEN can:
1) Link a toxic payload to an antibody targeting that receptor, where the antibody-toxin combination will be stable in the serum and not significantly release its payload into the systemic circulation.
2)By using a high through-put screening system, SGEN can tweak that ADC so that it not only recognizes and binds to the cell surface receptor, but is transported into the cell so that the ADC can release its payload within the cell itself. Merely, sitting on the cell surface is not good enough. The antibody's configuration must be such that it is transported into the cell.
3) Maximize the cell killing potential of the ADC once inside the cell. This is achieved by attaching, positioning and configuring only the requisite number of conjugate toxic payload molecules onto the antibody. Through proper configuration of the number of conjugated toxic molecules a strict and favorable balance between the desired targeted cell death and the undesirable systemic side effects can be achieved.
Thus far at least, the HL results with SGN-35 appear to be telling us that this tiered process from receptor target to "smart bomb" or "magic bullet" seems to be working.
It is no surprise that so many companies, having identified what they believe are exciting and potential target receptor sites, would find such a compact vertical integration platform so attractive as a "one stop" source for potential and powerful ADC drug development against those receptor targets.
After many years of floundering with "naked antibodies" and more primitive ADC technologies, SGEN appears to be on the cusp and perhaps cutting edge of a primary, if not exclusive, focus on a breakthrough method of targeting and killing harmful cells.
It has begun to research, develop and now meaningfully clinically advance its own products and has formed an impressive number of partners and potential royalty agreements. I suspect that these joint and royalty deals will expand as word of its "proof of concept" studies with SGN-35 become more prominently known, presented, published and recognized.
Obviously, given the above, I am very bullish on the long term prospects of this company.
I am, however, personally content to stay right now with "one horse and one jockey" in the ADC field as the SGEN platform is, in and of by itself, so seemingly fundamental and thoroughly diversified among the many potential drug candidates wholely owned by the company, partnered or via many royalty deals.
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