Go Go Gadget Spectrum
Spectrum Pharma has a new article on BioMedReports.com. The article states that a decision on SPPI's(Nasdaq:SPPI) drug Zevalin should have a decision made on September 7th. The article tagged Spectrum Pharma can be found at the following link: Spectrum Pharma The Labor Day Catalyst
This is good news for investors looking for the next breakout stock. Trading at around 6.30 earlier today and currently +0.19 at 6.47. Every analyst predicts if approved this could rocket the stock up to around 20-30 point range over the next year. Also, with acquisition rumors bumping the stock up too, I really see this as the opportunity to invest in a breakout winner. My only caution is that the FDA has recently tabled Savient(SVNT), Matrixx Initiatives(MTXX), and Dendreon (DNDN). This was pointed out exclusively in another article on Seeking Alpha titled 3 reason's not to predict FDA action.
One company left out of that list is Hemispherx Bio (HEB) Hemispherx has been trying to have their drug Ampligen for Chronic Fatigue Syndrome and was initially reviewed for approval. Hemispherx is struggling to stay afloat while waiting for this delay in approval. Hopefully good news will come this fall.
Spectrum should be granted approval for non-Hodgkin’s lymphoma (NHL) radio-immunotherapeutic (RIT), Zevalin. Also note that it has already been approved for a last resort for NHL but they are seeking approval as a first line consolidation therapy. They are working on the disuses of Zevalin in treatment with Physicians and pricing concerns with Medicare. Good news came in Q2 2009 with a 25% increase in sales.
These are great indicators to investors that they are doing everything possible to generate a profit and keep Zevalin a success. They are working on raising their market cap into the billion dollar range and have worked with their sales force to market the drug better. These are all excellent indicators for growth and success as an organization and the potential for acquisition from Big Pharma. I am sure Cell Therapeutics is kicking themselves for having to sell their stake in Zevalin in February. Read more about that here: Cell Therapeutics sells remaining stake to Spectrum 022009
Investment Report for Spectrum Pharmaceuticals Inc. >(SPPI)
Spectrum Pharmaceuticals Inc. (SPPI), a commercial-stage biotechnology company with a focus on oncology, develops and commercializes a portfolio of drug products. Its marketed products include ZEVALIN, a form of cancer therapy called radioimmunotherapy for the treatment of non-Hodgkin’s Lymphoma (NHL), and FUSILEV, which is indicated after high-dose methotrexate therapy in patients with osteosarcoma.
The Company is also developing apaziquone for the treatment of non-muscle invasive bladder cancer. Its phase II products include Ozarelix, a drug being investigated for benign prostatic hypertrophy (BPH), a non-cancerous enlargement of the prostate, and hormone dependent prostate cancer; and Ortataxel, a third-generation taxane.
The Company was formerly known as NeoTherapeutics Inc. and changed its name to Spectrum Pharmaceuticals Inc. in December 2002. Founded in 1987, SPPI is based in Irvine, California.
SPPI grew revenues 274.41% from $7.67 million to $28.73 million, year on year, while net income improved from a loss of $34.04 million to a smaller loss of $15.47 million.
In 2008, the Company increased its cash reserves by 764.15%, or $8.72 million. Cash Flow from Financing totaled $41.50 million or 144.47% of revenues. The Company used $8.01 million for operations while cash used for investing totaled $24.78 million.
SPPI has a Debt to Total Capital ratio of 0.37%, little changed from the previous year’s 0.00%.
On May 18, 2009, the Company reported first quarter 2009 earnings of $0.02 per share, exceeding the -$0.11 consensus loss of the two analysts covering the company, and underperforming last year’s first-quarter results by $0.30. First quarter 2009 revenues came in at $14.16 million, better than the $6.93 million consensus of the two analysts covering the Company, and 75.96% above the prior year’s first-quarter results.
The next earnings announcement is expected August 17, 2009