UPDATE: Bank Of America Upgrades Seattle Genetics

In a note released Tuesday, Bank of America analyst Stephen Byrne detailed the reasons for upgrading Seattle Genetics SGEN from Underperform to Neutral while lowering the price objective from $46 to $40. In the Investment thesis for Seattle Genetics Byrne wrote, "We rate Seattle Genetics shares Neutral. While we believe expectations for Adcetris' label expansions are mostly priced in, given the stock's pull-back and potential favorable AETHERA readout in 2H14 we rate Seattle Genetics shares Neutral." Byrne explained that, based on statistical review, Bank of America has lowered its estimated "probability of success" range for the AETHERA and ECHELON 1 and 2 studies by 20 percent (previously 50 percent - 80 percent). Byrne further noted that Seattle Genetics will discuss "potential trial modifications" with both the FDA and its partner Takeda.