) reported fourth quarter 2013 earnings (excluding stock-based
compensation, depreciation and other special items) of 5 cents
per share, well below the year-ago earnings of 29 cents per
share. Results were affected by lower revenues.
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Spectrum Pharma reported fourth quarter 2013 loss (including
stock-based compensation and depreciation but excluding other
special items) of a penny per share. The company had reported
earnings of 20 cents per share in the year-ago quarter. The Zacks
Consensus Estimate was a loss of 10 cents per share for the
Spectrum Pharma's revenues in the reported quarter came in at
$41.5 million, down 40.8% year over year. The massive decline in
total revenues was primarily due to lower product sales. Revenues
were also below the Zacks Consensus Estimate of $45 million.
Spectrum Pharma reported 2013 loss (excluding stock-based
compensation, depreciation and other special items) of 9 cents
per share as against year-ago earnings of $1.47 per share.
Spectrum Pharma reported 2013 loss (including stock-based
compensation and depreciation but excluding other special items)
of 32 cents per share. The company had reported year-ago earnings
of $1.22 per share. The Zacks Consensus Estimate was a loss of 44
cents for 2013. Revenues in the year were down 41.8% to $155.9
million. Revenues were also below the Zacks Consensus Estimate of
Quarter in Details
Spectrum Pharma recorded quarterly revenues from product sales
and licensing fees during the quarter. Product revenues in the
reported quarter were down 39.3% year over year to $40.5 million.
This consisted of revenues from Fusilev, Folotyn, Zevalin and
Fusilev's performance has improved in the second half of 2013,
after a disappointing first half. The drug is approved for the
treatment of metastatic colorectal cancer. Spectrum Pharma
recorded Fusilev sales of $20.6 million in the reported quarter.
Spectrum Pharma expects Fusilev sales to remain in the range of
$20−$25 million per quarter in the forthcoming quarters.
Sales from Folotyn, which was added to Spectrum Pharma's
portfolio following its acquisition of Allos Therapeutics, Inc.
in Sep 2012, came in at $11.3 million in the fourth quarter of
2013, up 7.6% sequentially. Folotyn is available in the U.S. for
the treatment of patients with relapsed or refractory peripheral
T-cell lymphoma (PTCL).
Zevalin sales during the reported quarter came in at $7.3
million. In Apr 2012, Spectrum Pharma acquired the licensing
rights to market Zevalin outside the U.S. Zevalin is currently
marketed for the treatment of non-Hodgkin's lymphoma. Spectrum
Pharma is looking to expand the drug's label. Zevalin is being
studied in a phase III study for the treatment of patients
suffering from diffuse large B-cell lymphoma.
Marqibo, launched in the U.S. for the treatment of adults
suffering from Philadelphia chromosome-negative (Ph-) acute
lymphoblastic leukemia (ALL) during late third quarter 2013,
contributed $1.3 million to the company's net revenues in the
fourth quarter. Spectrum Pharma gained worldwide rights to
Marqibo following the completion of the acquisition of
California-based Talon Therapeutics in Jul 2013. Marqibo is also
being developed for the treatment of non-Hodgkin's lymphoma.
Spectrum Pharma also received $1.0 million as licensing fees
during the quarter, compared with $3.4 million in the year-ago
The company's adjusted research and development (R&D)
expenses of $10.8 million during the quarter went down 21.8% year
over year. Adjusted selling, general and administrative
(SG&A) expenses in the fourth quarter of 2013 of $25.3
million remained flat year over year.
Spectrum Pharma expects its R&D expenses in 2014 to go up
from the 2013 figure of $46.6 million due to higher clinical
development activities. Meanwhile, SG&A expenses are expected
to remain flat on a year-over-year basis (2013 R&D expenses:
In Dec 2013, Spectrum Pharma has filed a New Drug Application
(NDA) for its pipeline candidate, Beleodaq (relapsed or
refractory peripheral T-cell lymphoma). The FDA is reviewing its
application for Beleodaq on a priority basis and a final decision
from the U.S. regulatory body on the approval of the candidate is
expected by Aug 9, 2014. Furthermore, the company plans to file
for Captisol-enabled melphalan (a conditioning agent for stem
cell transplant and multiple myeloma) by the end of 2014. The
company expects Captisol-enabled melphalan to be approved by next
We are encouraged by Fusilev's turnaround in the second half
after a disappointing first half 2013. Fusilev has been the key
revenue generator for Spectrum Pharma. We are also pleased with
the company's efforts to expand its product portfolio and
Spectrum Pharma currently carries a Zacks Rank #3 (Hold). Stocks
worth considering include
Alexion Pharmaceuticals, Inc.
Biogen Idec Inc.
WuXi PharmaTech (Cayman) Inc.
). While Alexion carries a Zacks Rank #1 (Strong Buy), Biogen and
WuXi Pharma hold a Zacks Rank #2 (Buy).