One of the most serious problems that many of the current crop of high-tech startups face has been their ability to diversify their revenue streams away from their core businesses. This problem is almost universal for some of the largest companies on the American stock market today. Companies such as Google and Facebook, among many other hi-tech power houses, have enormously profitable businesses. However, almost all of their money comes from advertising or other single sources of revenue. Many of these companies, despite massively costly effort to do something about their highly concentrated revenue sources, have been completely unable to venture out into other profitable business lines.
This problem has also extended to many biotech firms, the medical equivalent of an internet startup. However, under the sagacious leadership of Clay Siegall, Seattle Genetics has been able to avoid this fate, diversifing its revenue streams into a plethora of highly lucrative business lines. Seattle Genetics’ main source of revenues comes from a single FDA-approved drug called ADCetris. This is the first antibody drug conjugate drug to be approved by the FDA for patients in the general population. Over its first six years, the drug has proven to be enormously successful, increasing the five-year survival rates for many patients suffering from refractory non-Hodgkin’s lymphoma.
But Dr. Siegall has also wisely branched his firm into many other fields. Some of these include licensing of intellectual property, in particular, Seattle Genetics’ patented process for the synthesis of monoclonal antibodies using mammalian substrates. These monoclonal antibodies are a key component of antibody drug conjugates, without which the drugs simply cannot be synthesized. Seattle Genetics has also licensed a large number of processes and intellectual property to other drug manufacturers to help them in their own synthesis of antibody drug conjugates.
In addition to this, Seattle Genetics is licensing many of the drugs in its portfolio two other firms so that they may manufacture them as well. All told, Seattle Genetics has dozens of contracts with some of the biggest names in biotech and the pharmaceutical industry in general, such as Bayer, Bristol-Myers Squibb and many others.
My Dr. Siegall is still focusing on the core business, the synthesis of antibody drug conjugates. As one of the key players in the development of this exciting new line of drugs, Dr. Siegall has continued to lead the pack in terms of developing new antibody drug conjugates.
With Dr. Siegall at the helm, Seattle Genetics has a future full of bright prospects.