Seattle Genetics has announced an increase of stock they have offered to the public to invest in. The company’s CEO, Mr. Clay Siegall, said that they increased their allotment because the investors interested in the company exceeded their expectations. Many investors have revealed their investment interests in the company because of their innovative products and ongoing research that the firm has invested in over the last 18 years.
The money invested shall be used to fund more research, improve infrastructure, and develop the firm’s human resource. Part of the money shall be used to move into bigger and spacious offices because of the growth that is anticipated to come with the investment.
Since the establishment of the company in 1998, the company is yet to post profits. Its CEO and founder, Mr. Siegall, said that the company has chosen not to make money but to invest its revenues in growth instead.
Mr. Clay Siegall further said that if need be, the company can turn into making profits within a short period but they choose to focus on growth instead.
The companies do not necessarily make profits but their revenues are channeled into the development of other income generating activities, infrastructure, or research.
Due to the value of the research, infrastructure, and the brand, the value of the companies’ shares increases hence the investors’ interests in the share keep growing.
It is important to note that most biotechnology companies usually take more time before making a profit.
Out of the $77 million that the company sold this year, over $55 million came from the sale of Adcetrics. As a result, the company is focusing its resources on the expansion of Adcetrics’ sales.
Clay Siegall founded the company after working in several top-ranking research institutes. He is a Ph.D. holder and has served on the board of Alder Biopharmaceuticals Inc. (NASDAQ: ALDR) for over ten years.
Clay has been Seattle Genetics’ CEO since its inception to becoming a major supplier of antibody-drug conjugates that are used in cancer treatment.