Back to top

Analyst Blog

Spectrum Pharmaceuticals, Inc. (SPPI - Snapshot Report) recently launched its newly acquired drug, Marqibo, in the U.S. Marqibo is approved in the U.S. for the treatment of adults suffering from Philadelphia chromosome-negative (Ph-) acute lymphoblastic leukemia (ALL) in second or greater relapse or whose disease has progressed after being treated with two or more anti-leukemia therapies.

Marqibo is also being developed in two phase III studies in indications including non-Hodgkin's lymphoma.

We note that Spectrum Pharma gained worldwide rights to Marqibo following the completion of the acquisition of California-based Talon Therapeutics. In Jul 2013, Spectrum Pharma acquired Talon Therapeutics for an upfront cash consideration of $11.3 million.

Apart from the upfront cash payment, Spectrum Pharma also issued 3 million shares of its common stock to Talon stockholders to cancel out the outstanding indebtedness under Talon's credit facility. The shareholders of Talon are also entitled to receive contingent value rights (CVRs) of up to $195 million in cash payments on achieving certain milestones related to Talon’s Marqibo and Menadione Topical Lotion.

Menadione Topical Lotion was added to Spectrum Pharma’s pipeline following the acquisition. The candidate is being developed for the treatment of skin toxicity. The transaction also added brakiva and alocrest to Spectrum Pharma’s pipeline. These are liposomal versions of approved anti-cancer drugs.

The same sales force, which currently sells Spectrum Pharma’s Folotyn and Zevalin, is being utilized for Marqibo. Folotyn and Zevalin are currently approved for the treatment of patients with relapsed or refractory peripheral T-cell lymphoma (PTCL) and non-Hodgkin's lymphoma (NHL), respectively. Folotyn and Zevalin contributed around $12.6 million and $6.8 million, respectively, to Spectrum Pharma’s total revenues in the second quarter of 2013. We expect investor focus to remain on Marqibo going forward.

Spectrum Pharma currently carries a Zacks Rank #4 (Sell). Other stocks like Biogen Idec Inc. (BIIB - Analyst Report), Gilead Sciences Inc. (GILD - Analyst Report) and Actelion Ltd. (ALIOF) presently look more attractive with a Zacks Rank #1 (Strong Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
PLANAR SYST… PLNR 4.44 +5.21%
BITAUTO HOL… BITA 81.71 +5.12%
CTPARTNERS… CTP 16.66 +4.26%
CHINA BIOLO… CBPO 47.91 +3.30%
MALLINCKROD… MNK 72.94 +2.85%