Spectrum Pharmaceuticals, Inc. (SPPI - Free Report) incurred a loss of 26 cents per share in the second quarter of 2017, slightly narrower than the Zacks Consensus Estimate of a loss of 27 cents and the year-ago loss of 35 cents. However, adjusted loss (including stock-based compensation expenses) in the quarter was 15 cents per share.
The company’s shares were up more than 13% in aftermarket trading on Thursday following the earnings release probably due to investors' confidence in poziotinib and approval of Folotyn in Japan. Spectrum Pharma’s shares have significantly outperformed the industry so far this year. Specifically, the company’s shares have gained 65.4%, whereas the industry registered an increase of 0.9%.
Quarterly revenues came in at $34.3 million, up 1% from the year-ago quarter. The top line, also, surpassed the Zacks Consensus Estimate of $30.5 million.
Quarter in Detail
Spectrum Pharma earns revenues from six marketed products – Fusilev, Folotyn, Zevalin, Marqibo, Beleodaq and Evomela. Total product sales came in at $31.4 million, up 0.87% year over year.
License fees and service revenues remained almost flat year over year at $3.1 million.
Research & development expenses were $15.1 million, up 5.7%. Selling, general and administrative spending was down 38.1% to $17.1 million.
Spectrum Pharma has been making progress on the development of its pipeline candidates. The company has completed enrolling patients in phase III study, ADVANCE, on Rolontis (SPI-2012), under a Special Protocol Assessment (SPA) agreement with the FDA, for the treatment of chemotherapy-induced neutropenia in patients with breast cancer. Top-line data from the study is expected in the first quarter of 2018. The company expects to file a biologics license application (BLA) in 2018.
The company is currently enrolling patients in an additional phase III study, RECOVER, to support ADVANCE study data, which will be filed with the BLA.
Another pipeline candidate, poziotinib (pan-HER inhibitor), is in a phase II study in the U.S. and is currently enrolling breast cancer patients who have failed multiple HER-2 directed therapies. In addition, an investigator sponsored phase II study is evaluating the candidate in non-small cell lung cancer patients with EGFR or HER2 exon 20 insertion mutations. Interim data from the study expected by the end of 2017. The company also has plans to initiate a study to evaluate poziotinib in combination with standard of care in second-line breast cancer.
Zacks Rank & Stocks to Consider
Spectrum Pharma currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the pharma sector include Summit Therapeutics PLC (SMMT - Free Report) , Immune Design Corp. (IMDZ - Free Report) and Endocyte, Inc. (ECYT - Free Report) . All the three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Summit’s loss estimates narrowed from $2.36 to 32 cents for 2017 over the last 30 days. The company delivered positive earnings surprise in each of the four trailing quarters with an average beat of 25.55%. Its share price is up 66.4% so far this year.
Endocyte’s loss estimates narrowed from $1.20 to 88 cents for 2017 over the last 60 days. The company came up with a positive earnings surprise in three of the four trailing quarters with an average beat of 6.41%. The company is scheduled to release second quarter results on Aug 8.
Immune Design’s loss per share estimates narrowed from $2.44 to $2.37 for 2017 over the last 60 days. The company delivered positive surprises in three of the four trailing quarters with an average beat of 12.94%. The stock is up 90% so far this year.
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