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.
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.
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
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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