) reported fourth quarter of 2012 earnings (including stock-based
compensation but excluding other special items) of 19 cents per
share, ahead of the Zacks Consensus Estimate of 16 cents and the
year-ago earnings of 15 cents per share. Earnings during the
quarter benefited from higher revenues.
Spectrum Pharma reported adjusted earnings of $1.19 per share
for full year 2012, above the year-ago earnings of 92 cents per
share. However, earnings for the year fell short of the Zacks
Consensus Estimate of $1.49 per share. The company's 2012 total
revenues jumped 38.7% to $267.7 million. Revenues just beat the
Zacks Consensus Estimate of $266 million.
Quarter in Details
Spectrum Pharma's revenues in the reported quarter came in at
$70.1 million, up 32.3% year over year. Increase in total
revenues was primarily due to higher product sales. Revenues in
the fourth quarter edged past the Zacks Consensus Estimate of $69
Spectrum Pharma recorded quarterly revenues from product sales
and licensing fees. The company's product revenues in the
reported quarter increased 33.7% year over year to $66.7 million.
Product revenues in the reported quarter consisted of revenues
from Fusilev, Folotyn and Zevalin.
Fusilev is the highest contributor to Spectrum Pharma's sales.
The drug is approved for the treatment of metastatic colorectal
cancer (mCRC). The company recorded Fusilev sales of $44.5
million in the reported quarter. The company is initiating
clinical studies to expand Fusilev's label.
Sales from Folotyn, which was added to Spectrum Pharma's
portfolio following its acquisition of Allos Therapeutics, Inc.
in Sep 2012, came in at $14.4 million in the fourth quarter of
2012. Folotyn is available in the US for the treatment of
patients with relapsed or refractory peripheral T-cell lymphoma
Zevalin sales during the reported quarter came in at $7.8
million. In Apr 2012, Spectrum Pharma acquired the licensing
rights to market Zevalin outside the US.
Spectrum Pharma also received $3.4 million as licensing fees
during the quarter.
The company's adjusted research and development (R&D)
expenses of $12.9 million during the quarter shot up 117.3% year
over year. The increase in R&D expenses during the quarter
was primarily due to higher clinical expenses.
Adjusted selling, general and administrative (SG&A)
expenses in the fourth quarter of 2012 came in at $17.2 million,
up 41.7% year over year due to higher promotional expenses
related to the company's marketed products.
Spectrum Pharma is currently conducting a phase III (ZEST)
study on Zevalin in patients suffering from diffuse large B-cell
lymphoma (DLBCL). The company is also running the SPINOZA (IIS)
trial in patients suffering from relapsed DLBCL who have received
autologous stem cell transplantation (ASCT). Zevalin is also
being evaluated against
Biogen Idec Inc.
) Rituxan in previously untreated patients with follicular
On the fourth quarter conference call, the company stated that
it expects total revenue in 2013 to surpass 2012 levels. We are
impressed with the company's robust pipeline. We expect investor
focus to remain on the company's pipeline going forward.
Spectrum Pharma, a biotechnology company, currently carries a
Zacks Rank #5 (Strong Sell). Not all biotech stocks are
performing as poorly as Spectrum Pharma. Companies like
Elan Corporation, plc
United Therapeutics Corporation
) presently look more attractive. Elan carries a Zacks Rank #2
(Buy), while United Therapeutics carries a Zacks Rank #1 (Strong
BIOGEN IDEC INC (BIIB): Free Stock Analysis
ELAN CP PLC ADR (ELN): Free Stock Analysis
SPECTRUM PHARMA (SPPI): Free Stock Analysis
UTD THERAPEUTIC (UTHR): Free Stock Analysis
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