Shares of Spectrum Pharmaceuticals, Inc. (SPPI - Free Report) were down 6.2% on Friday as the company reported loss of 36 cents per share for first-quarter 2020, wider than the Zacks Consensus Estimate of a loss of 34 cents. Adjusted loss, excluding stock-based compensation and certain other expenses,was 22 cents per share, narrower than the year-ago quarter’s loss of 27 cents.
Shares of Spectrum Pharma have decreased 25.5% so far this year compared with the industry’s decline of 10.4%.
Quarter in Detail
The company did not record any revenues during the quarter as it sold its marketed portfolio to privately-held Acrotech Biopharma in 2019. The Zacks Consensus Estimate for revenues was pegged at $0.3 million.
Adjusted selling, general and administrative (SG&A) expenses were $10.8 million, up 1.4% from the year-ago quarter.
Adjusted research & development (R&D) expenses were down 28.7% to $14.6 million.
Spectrum Pharma’s lead product, Rolontis, is under review in the United States. In December 2019, the FDA accepted the biologics license application seeking approval for Rolontis for the management of chemotherapy-induced neutropenia. A decision is expected by Oct 24, 2020. The company is actively preparing for the launch of Rolontis, following a potential approval.
Last month, the company announced dosing of the first patient in a clinical study, which will evaluate the duration of severe neutropenia following administration of Rolontis at three different time points on the same day following standard chemotherapy in patients with early-stage breast cancer.
The company is developing its pipeline candidate, poziotinib, as monotherapy or in combination with other drugs for the treatment of lung cancer and breast cancer in a multi-cohort phase II study — ZENITH20. In April, the company amended the study design to explore additional twice daily dosing regimens as well as lower single daily dosage amounts. Moreover, the company also added evaluation of earlier use of corticosteroids in an effort to help patients better tolerate poziotinib and stay on therapy for a longer time.
The ZENITH20 study is evaluating poziotinib in non-small cell lung cancer (“NSCLC”) patients with an exon 20 mutation in EGFR or HER2. The company has completed enrollment in two cohorts of the ZENITH20 study — previously treated NSCLC patients with HER2 exon 20 insertion mutation and first-line NSCLC patients with EGFR mutation.Top-line data from the previously-treated HER2 NSCLC and first-line EGFR NSCLC cohorts are expected by mid-2020 and year-end, respectively. The company stated that favorable data from each cohort can support a regulatory application submission seeking approval for poziotinib in the respective indication.
The study is currently enrolling NSCLC patients in the cohorts evaluating the candidate in treatment-naive patients with HER2 mutation, previously treated patients with atypical EGFR or HER2 mutation, and patients treated with AstraZeneca’s (AZN - Free Report) Tagrisso in first-line setting who have acquired EGFR mutations.
Zacks Rank & Other Stocks to Consider
Spectrum Pharma currently sports a Zacks Rank #1 (Strong Buy).
A couple of other top-ranked biotech stocks include Seattle Genetics Inc (SGEN - Free Report) and Immunomedics, Inc. (IMMU - Free Report) , both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Seattle Genetics’ loss per share estimates have narrowed from $3.23 to $3.10 for 2020 and from $1.41 to 81 cents for 2021 in the past 30 days. The company’s average four-quarter positive earnings surprise is 16.15%. The company’s stock has surged 38% so far this year.
Immunomedics’ loss per share estimates have narrowed from $1.65 to $1.55 for 2020 and from $1.03 to 81 cents for 2021 in the past 30 days. The company’s stock has surged 54.1% so far this year.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>