Spectrum Pharmaceuticals
(
SPPI
) recently acquired global development and commercialization
rights to
Ligand Pharmaceuticals Inc
's (
LGND
) Captisol-enabled, propylene glycol-free (PG-free) melphalan.
Captisol-enabled melphalan is currently being developed as a
conditioning treatment before autologous stem cell transplant for
patients suffering from multiple myeloma.
Ligand Pharma will be receiving a license fee, milestone
payments and royalties from Spectrum Pharma following potential
commercialization of the candidate. Spectrum Pharma will now be
responsible for the ongoing pivotal clinical study on the
candidate. The company expects to file a New Drug Application
(NDA) with the US Food and Drug Administration (FDA) in the first
half of 2014.
The news is encouraging for Spectrum Pharma. The deal will add
another late-stage program to Spectrum Pharma's portfolio. The
company already has belinostat and apaziquone in its late stage
program.
Spectrum Pharma expects to file an NDA for its peripheral
T-cell lymphoma candidate, belinostat, around mid-2013 and
expects to commercialize the candidate in 2014, provided it gains
FDA approval. The company also expects to file an NDA for
oncology candidate apaziquone in 2014.
We, however, remain concerned about the company's financial
guidance for 2013. In its recently announced financial guidance
for 2013. Spectrum Pharma noted that its metastatic colorectal
cancer (mCRC) drug, Fusilev, will generate revenues of around
$80−$90 million in 2013.
In 2012, Spectrum Pharma had recorded total Fusilev sales of
$204.3 million. But the company expects that sales in 2013 will
be impacted by the shifting of hospitals to generics. However,
clinical segment sales are expected to be stable and the company
believes this segment will continue to grow.
The company's total revenues for the year are expected in the
range of $160 million to $180 million, whereas it recorded $267.7
million of total revenue in 2012.
Spectrum Pharma, a biotechnology company, currently carries a
Zacks Rank #4 (Sell). Presently, other biotech companies like
Cytokinetics Inc.
(
CYTK
) and
Agenus Inc
(
AGEN
) look more attractive. Cytokinetics carries a Zacks Rank #1
(Strong Buy), while Agenus carries a Zacks Rank #2 (Buy).
AGENUS INC (AGEN): Free Stock Analysis Report
CYTOKINETCS INC (CYTK): Free Stock Analysis
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LIGAND PHARMA-B (LGND): Free Stock Analysis
Report
SPECTRUM PHARMA (SPPI): Free Stock Analysis
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