Seattle Genetics, Inc. SGEN reported a loss of 15 cents per share, wider than the Zacks Consensus Estimate of a loss of 11 cents but narrower than the year-ago loss of 17 cents.Revenues came in at $111.2 million, up 35.3% year over year, primarily due to strong sales of Adcetris. Revenues, however, missed the Zacks Consensus Estimate of $115 million.Quarter in DetailSeattle Genetics’ top line comprises product revenues, collaboration and license agreement revenues, and royalties. Adcetris, the only marketed product at Seattle Genetics, generated revenues of $58.6 million, up 19.8% year over year.Collaboration and license agreement revenues tanked 9.2% to $20.2 million. Collaboration revenues include revenues earned from the company’s collaboration with Takeda Pharmaceutical Company Ltd. TKPYY for Adcetris as well as other ADC collaborations.Royalty revenues surged 192.6% to $32.3 million, driven by royalties from Takeda for international sales of Adcetris. Royalty revenues also included a one-time sales milestone worth $20 million from Takeda for surpassing $200 million in Adcetris sales in 2015.Research and development (R&D) expenses were $92.9 million, up 46.5% year over year. Selling, general and administrative (SG&A) expenses declined 7.4% to $29.7 million.2016 OutlookSeattle Genetics reiterated its revenue guidance. The company continues to expect Adcetris sales of $255–$275 million and royalty revenues of $60–$65 million.Pipeline UpdateSeattle Genetics continues to progress with the candidates in its pipeline. The company expects to report data from a phase III study (ALCANZA) on Adcetris for relapsed CD30-expressing cutaneous T-cell lymphoma in the third quarter of 2016.Moreover, the company plans to initiate a phase III study on vadastuximab talirine to evaluate 33A in combination with hypomethylating agents in older patients with acute myeloid leukemia by the third quarter of 2016.Our TakeSeattle Genetics’ first-quarter 2016 results were disappointing with the company reporting wider-than-expected loss and missing bottom-line estimates. We are, however, pleased with the robust sales of Adcetris in the U.S. and Canada. However, the company’s dependence on Adcetris for growth remains a concern.We expect investor focus to remain on Adcetris' performance and pipeline updates.Seattle Genetics carries a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the health care sector are Aegerion Pharmaceuticals, Inc. AEGR and Emergent BioSolutions, Inc. EBS, both sporting a Zacks Rank #1 (Strong Buy).Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AEGERION PHARMA (AEGR): Free Stock Analysis Report SEATTLE GENETIC (SGEN): Free Stock Analysis Report EMERGENT BIOSOL (EBS): Free Stock Analysis Report TAKEDA PHARMACT (TKPYY): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research