1060736--3/11/2008--SEATTLE_GENETICS_INC

related topics

{product, candidate, development}

{property, intellectual, protect}

{acquisition, growth, future}

{stock, price, operating}

{provision, law, control}

{control, financial, internal}

{product, liability, claim}

{regulation, change, law}

{personnel, key, retain}

{product, market, service}

{cost, regulation, environmental}

{stock, price, share}

Risks Related to Our Business Our product candidates are at early stages of development and, if we are not able to successfully develop and commercialize them, we may not generate sufficient revenues to continue our business operations. Clinical trials for our product candidates are expensive, time consuming and their outcome is uncertain. Our clinical trials may fail to demonstrate acceptable levels of safety and efficacy of our product candidates, which could prevent or significantly delay their regulatory approval. Our clinical trials may take longer to complete than we project or they may not be completed at all. In some circumstances we rely on collaborators to assist in the research and development of our product candidates, as well as to utilize our ADC technology. If we are not able to locate suitable collaborators or if our collaborators do not perform as expected, it may affect our ability to commercialize our product candidates and/or generate revenues through technology licensing. We depend on a small number of collaborators for most of our current revenue. The loss of any one of these collaborators could result in a substantial decline in our revenue. We currently rely on third-party manufacturers and other third parties for production of our drug products and our dependence on these manufacturers may impair the development of our product candidates. Our ADC technology is still at an early-stage of development. We have a history of net losses. We expect to continue to incur net losses and may not achieve or maintain profitability for some time, if at all. We will continue to need significant amounts of additional capital that may not be available to us. We rely on license agreements for certain aspects of our product candidates and technology. Failure to maintain these license agreements or to secure any required new licenses could prevent us from developing or commercializing our product candidates and technology. We rely on third parties to provide services in connection with our preclinical and clinical development programs. The inadequate performance by or loss of any of these service providers could affect our product candidate development. If we are unable to enforce our intellectual property rights, we may not be able to commercialize our product candidates. Similarly, if we fail to sustain and further build our intellectual property rights, competitors may be able to develop competing therapies. We may incur substantial costs and lose important rights as a result of litigation or other proceedings relating to patent and other intellectual property rights. If we lose our key personnel or are unable to attract and retain additional qualified personnel, our future growth and ability to compete would suffer. We face intense competition and rapid technological change, which may result in others discovering, developing or commercializing competing products before or more successfully than we do. We have no experience in commercializing products on our own and, to the extent we do not develop this ability or contract with a third party to assist us, we may not be able to successfully sell our product candidates. We face product liability risks and may not be able to obtain adequate insurance to protect us against losses. Our operations involve hazardous materials and are subject to environmental, health and safety controls and regulations. We may engage in future acquisitions that increase our capital requirements, dilute our stockholders, cause us to incur debt or assume contingent liabilities and subject us to other risks. Legislative actions, potential new accounting pronouncements and higher insurance costs are likely to impact our future financial position or results of operations. Risks Related to Our Stock Our stock price may be volatile and our shares may suffer a decline in value. Our existing stockholders have significant control of our management and affairs. Anti-takeover provisions could make it more difficult for a third party to acquire us.

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1060736--3/11/2008--SEATTLE_GENETICS_INC_/WA