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Spectrum (SPPI) Q4 Loss Narrower than Expected, Sales Beat

Spectrum Pharmaceuticals, Inc.SPPI reported a loss of 22 cents per share in the fourth quarter of 2016, narrower than the Zacks Consensus Estimate of a loss of 26 cents but substantially wider than year-ago loss of 6 cents. Adjusted loss (including stock-based compensation expenses) in the quarter was 14 cents per share.

Spectrum Pharma's shares have significantly outperformed Zacks classified Medical-Drugs so far this year. Specifically, the company's shares gained 41.7%, whereas the industry registered an increase of just 5.2%.

Quarterly revenues came in at $35.2 million, down 30% from the year-ago quarter. The top line, however, surpassed the Zacks Consensus Estimate of $32 million.

Quarter in Detail

Spectrum Pharma earns revenues from six marketed products - Fusilev, Folotyn, Zevalin, Marqibo, Beleodaq and Evomela. Total product sales came in at $32.2 million, down 7.5% year over year.

License fees and service revenues were $3 million compared with the year-ago figure of $15.5 million.

Research & development expenses were $15.9 million, up 3.2%. Selling, general and administrative spending was down 13.7% to $18.3 million.

Pipeline Update

Spectrum Pharma has been making progress on the development of its pipeline candidates. The company is currently enrolling patients in a phase III study on Rolontis (SPI-2012), under a Special Protocol Assessment (SPA) agreement from the FDA, for the treatment of chemotherapy-induced neutropenia in patients with breast cancer. The company plans to initiate an additional phase III study to evaluate patients in Europe and expects to file a biologics license application (BLA) in 2018.

Another pipeline candidate, poziotinib (pan-HER inhibitor), is in a phase II study in the U.S. and is currently enrolling breast cancer patients who have failed other HER-2 directed therapies. In addition, multiple phase II studies in several tumor types, including breast cancer, non-small cell lung cancer and gastric cancer are being conducted in South Korea by Hanmi Pharmaceuticals and National OncoVenture.

2016 Results

Full-year sales decreased 10% year over year to $146.4 million. Nonetheless, sales beat the Zacks Consensus Estimate of $144.9 million.

Full-year loss of 94 cents per share was slightly narrower than the Zacks Consensus Estimate of a loss of 97 cents. The company had posted earnings of 78 cents per share a year ago.

Spectrum Pharmaceuticals, Inc. Price, Consensus and EPS Surprise

Spectrum Pharmaceuticals, Inc. Price, Consensus and EPS Surprise | Spectrum Pharmaceuticals, Inc. Quote

Zacks Rank & Key Picks

SpectrumPharma currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the health care sector include Celldex Therapeutics, Inc. CLDX , Applied Genetic Technologies Corporation AGTC and Sunesis Pharmaceuticals, Inc. SNSS . Each of these stocks carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

Celldex's loss estimates narrowed from $1.08 to $1.07 for 2017 over the last 30 days. The company posted positive surprises in three of the four trailing quarters with an average beat of 5.12%.

Applied Genetic's earnings estimates increased from 4 cents to 24 cents for 2017, while its loss estimates narrowed from $1.26 to 56 cents for 2018 over the last 30 days. The company posted positive earnings surprises in three of the four trailing quarters with an average beat of 222.92%.

Sunesis' loss estimates narrowed from $2.57 to $2.44 for 2016 and from $2.16 to $1.97 for 2017 over the last 60 days. The company posted positive earnings surprises in three of the four trailing quarters with an average beat of 0.54%.

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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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