Spectrum Guides Lower 2013 Revenue - Analyst Blog

SpectrumPharmaceuticals ( SPPI ) recently provided its first quarter and full year 2013 revenue guidance.

The company expects Fusilev sales in the first quarter of 2013 in the range of $10 million to $15 million. Fusilev sales for the full year 2013 are expected to be around $80−$90 million.

In 2012, Spectrum Pharma had recorded total Fusilev sales of $204.3 million. But the company expects that sales in 2013 to 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.

Spectrum Pharma expects ordering patterns of its metastatic colorectal cancer (mCRC) drug, Fusilev, will change due to the stabilization of the folate analog market. The company stated that the majority of the impact due to the change in the ordering pattern will be during the first half of the year, and it will stabilize in the latter half.

Spectrum Pharma, however, believes that sales from its hematology franchise, including Folotyn and Zevalin, will grow during 2013. The company's total revenues for the year are expected between $160 million and $180 million. The Zacks Consensus Estimate of $299 million is way above the company's guidance range. In 2012, total revenue at Spectrum Pharma was $267.7 million.

In spite of guiding towards lower revenues in 2013 compared to 2012, Spectrum Pharma continues to expect to be profitable in 2013. The Zacks Consensus Estimate is 87 cents per share.

The company also updated its plans for its late-stage candidates. Spectrum Pharma expects to file a New Drug Application (NDA) with the US Food and Drug Administration (FDA) for its peripheral T-cell lymphoma candidate, belinostat, around mid-2013. The company expects to commercialize the candidate in 2014, provided it gains FDA approval. Spectrum Pharma also expects to file an NDA for oncology candidate apaziquone in 2014.

We expects the shares to be negatively impacted by the news regarding the guidance.

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 Cytokinetics Inc. ( CYTK ), WuXi PharmaTech ( WX ) and Agenus Inc ( AGEN ) presently look more attractive. Cytokinetics and WuXi Pharma carry 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 Report

SPECTRUM PHARMA (SPPI): Free Stock Analysis Report

WUXI PHARMATECH (WX): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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