Back to top

Image: Bigstock

Spectrum Pharma Dismisses CEO, Makes Leadership Changes

Read MoreHide Full Article

Spectrum Pharmaceuticals, Inc. announced the termination its chief executive officer (CEO) — Rajesh C. Shrotriya — without any cause along with other leadership changes. The company appoints its present chief operating officer (COO), Joseph W. Turgeon, as the new CEO with immediate effect.

Per management, Turgeon will also continue to serve as the president of the company. Currently, he has been elected to the board of directors as well.

Meanwhile, Spectrum promoted Thomas J. Riga — its present executive vice president, chief commercial officer and head of business development — to the post of COO. Furthermore, the company has elected director — Stuart M. Krassner — as the chairman of its board of directors. Notably, all these changes are effective immediately.

Shares of Spectrum Pharma have skyrocketed 185% in the last six months, significantly outperforming the industry’s gain of 1.2%.

 

Markedly, Turgeon and Riga have a combined experience of nearly 50 years in the pharmaceutical industry. While Turgeon has 30 years pharma experience including 22 years as vice president of sales at Amgen Inc. (AMGN - Free Report) , Riga has carried out a number of executive roles at Amgen, Eli Lilly and Company (LLY - Free Report) and privately held Dendreon for over 15 years.

The lackluster product sales have kept investors focused on pipeline development. The company’s stock has been surging since the beginning of this year backed by its progress with its lead pipeline candidates.

The company is currently developing poziotinib in a phase II study in non-small cell lung cancer patients, Qapzola, in a phase III study in non-muscle invasive bladder cancer and Rolontis in phase III study for treating chemotherapy-induced neutropenia in patients with breast cancer.

The company expects to file a biologics license application for Rolontis by the end of 2018.

All the three candidates hold promise as they target multi-billion dollar market. However, it remains to be seen how the changes at the leadership position will impact the company.

Zacks Rank & Stock to Consider

Spectrum Pharma carries a Zacks Rank #3 (Hold).

Corcept Therapeutics Incorporated (CORT - Free Report) is a better-ranked health care stock, carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Corcept’s earnings per share estimates have increased from 78 cents to 88 cents for 2018 over the last 60 days. The company delivered a positive earnings surprise in two of the trailing four quarters with an average beat of 14.32%. The company’s stock is up 128.8% so far this year.

Wall Street’s Next Amazon

Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.

Click for details >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Eli Lilly and Company (LLY) - free report >>

Amgen Inc. (AMGN) - free report >>

Corcept Therapeutics Incorporated (CORT) - free report >>

Published in