(RTTNews) - Clinical stage biotechnology company Seattle Genetics Inc. (SGEN: News ) on Thursday reported a net loss for the third quarter that narrowed from the year-ago period, helped by a 44% surge in revenues. The loss per share for the quarter was narrower than analysts' consensus estimate.

The company's net loss for the third quarter was $19.83 million, or $0.21 per share, narrower than $21.76 million, or $0.27 per share, in year-ago period. On average, 10 analysts polled by Thomson Reuters expected the company to report a loss of $0.25 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the third quarter surged 44% to $11.65 million from $8.08 million in the year-ago period, and topped analysts' consensus revenue estimate of $9.34 million.

Revenues for the latest quarter were primarily driven by the earned portion of the upfront fee, reimbursements and milestone payments received under the company's collaboration with Genentech Inc. (DNA) on cancer drug dacetuzumab, and amounts earned under the company's antibody-drug conjugate, or ADC collaborations. Genentech is now part of Swiss drug giant Roche Holding AG (RHHBY.PK, RHHVF.PK).

In early October, Seattle Genetics said it has stopped its dacetuzumab Phase IIb diffuse large B-cell lymphoma clinical trial based on a determination that the trial would be unlikely to meet its primary endpoint. The company took the decision on a recommendation by the Independent Data Monitoring Committee following a pre-specified interim analysis conducted on October 2. The company noted that it will no longer provide dacetuzumab to patients enrolled on the trial.

The company's total operating expenses for the quarter increased to $32.22 million from $31.40 million a year ago, primarily driven by clinical development and manufacturing activities for brentuximab vedotin, the company's lead ADC for relapsed or refractory Hodgkin lymphoma.
Loss from operations narrowed to $20.57 million from $23.32 million in the year-ago quarter. Net investment income dropped to $0.75 million from $1.56 million in the same period last year.

For the first nine months of 2009, the company's net loss widened to $69.57 million, or $0.79 per share, from $54.90 million, or $0.70 per share, in the prior-year period.
Revenues for the period rose 20% to $30.20 million from $25.17 million in the year-ago period.

As of September 30, 2009, Seattle Genetics had $306.0 million in cash and investments, compared to $189.9 million as of June 30, 2009. Cash and investments as of September 30, 2009 reflect net proceeds of approximately $128 million from the company's public offering of common stock in August 2009.

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