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Wednesday, January 31, 2018

=Cascadian Therapeutics (CASC) to be acquired by Seattle Genetics (SGEN) for $10.00/share

Cascadian Therapeutics to be acquired by Seattle Genetics (SGEN) for $10.00/share in cash, or approximately $614 mln; SGEN issues prelim Q4 results
Cascadian Therapeutics' most advanced program is tucatinib, an investigational oral, small molecule tyrosine kinase inhibitor (TKI) that is highly selective for HER2, a growth factor receptor that is overexpressed in multiple cancers, including breast, colorectal, ovarian and gastric. Tucatinib is currently being evaluated in a randomized global pivotal trial called HER2CLIMB for patients with HER2-positive (HER2+) metastatic breast cancer, including patients with or without brain metastases.
  • The transaction is anticipated to close in the first quarter of 2018. In connection with the transaction, Seattle Genetics has secured a financing commitment in the amount of $400 million from Barclays and JPMorgan-Chase Bank. The balance of the consideration will be provided from cash on hand.
  • Prelim Q4 results: Seattle Genetics sees Q4 revs of $128-130 mln vs $114.20 mln Capital IQ Consensus Estimate
    • Total revenues increased from the comparable periods in 2016 primarily as a result of increased ADCETRIS net product sales. ADCETRIS net product sales increased from the comparable periods in 2016 primarily due to an increase in sales volume and, to a lesser extent, price increases. The increases in sales volumes in both periods were driven primarily by increased use of ADCETRIS across multiple lines of therapy in Hodgkin lymphoma and for the treatment of other malignancies.

Seattle Genetics announces proposed offering of $550 mln of common stock
Seattle Genetics anticipates using the net proceeds from the offering to fund a portion of the costs of the acquisition of Cascadian Therapeutics, Inc. In the event that Seattle Genetics does not consummate such acquisition, Seattle Genetics expects to use the net proceeds from the offering for the ongoing commercialization of ADCETRIS (brentuximab vedotin) in the United States and Canada, its research and development efforts designed to further expand the ADCETRIS label and the advancement of its pipeline of product candidates, as well as for general corporate purposes, including working capital.

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