Spectrum Pharmaceuticals (Nasdaq: SPPI) PPS estimate

[spartakis]

Anybody have any predictions of target prices for sppi, still worth owning.

[erlik]

It depends on you investment horizon. I think that in the near term the prospect are not very good: unless SPPI manages to negociate with the FDA that Fusilev can be approved without further trials there is not much to push the stock higher. The 3rd quarter sales data (to be released in november) could also give it a little boost.

On the 3 to 6 month horizon however we may be pleasantly surprised by the Zevalin sales under the expanded label, and the stock may rise back to the $6 to $8 level. However the first full quarter of "new" Zevalin sales will only be reported in february 2010, so you will need some patience.

[hl88]

Recently Centers for Medicare and Medicade Services (CMS) ruled in favor of the company's radio-immunotherapy Zevalin®. Zevalin is now approved as a first-line treatment for patients with non-Hodgkin's lymphoma (NHL).

This is great news for SPPI to overcome barrier to sell more Zevalin to patients starting in near future.

In a month or two, SPPI will face a critical momment with FDA approval on Fusilev on colorectal cancer which may be blockbuster drug. Based on their past clinical trial results of Fusilev, it is more likely to get approval.

[erlik]

I think that the CMS rule for Zevalin is a big win for SPPI over the longer term, but keep in mind that the reimbursement will only start in January 2010. IMHO we'll see the following:

- Mid November 09: results of Q3 2009: small increase in sales of Zevalin, small price bump.

- Mid February 2010: results of Q4 2009, first quarter of Zevalin sales under the new label, but not yet reimbursed, significant sales and PPS boost.

- Mid April 2010: results of Q1 2010, first quarter of reimbursed Zevalin sales, another significant sales and PPS boost.

For Fusilev, I don't know if it has much of a blockbuster status, even if approved for colorectal cancer. Granted, it offers some advantages over generic Leucovorin, but it is also much more expensive (like 100 times the price) so I don't know if it would get used that much, even if approved.

IMHO the main growth prospects for next year are linked to Zevalin sales and the Ph 3 trial of Eoquin. I see any action on Fusilev more as a bonus than as a growth driver.

[zetaseven]

News on this stock:

• Spectrum Pharmaceuticals Completes Enrollment in Second of Two Phase 3 Pivotal Trials for Apaziquone in Non-Muscle Invasive Bladder Cancer | Business Wire
  

• StreetInsider.com - Morgan Joseph Upgrades Spectrum Pharmaceuticals (SPPI) to Buy; Expect Strong Zevalin Growth
  

[zetaseven]

Phase 3 Trial of Single-Dose Intravesical EOquin® as a Surgical Adjuvant for Noninvasive Bladder Cancer - Full Text View - ClinicalTrials.gov

• Estimated Enrollment: 800

• Estimated Study Completion Date: April 2010

• Estimated Primary Completion Date: April 2010 (Final data collection date for primary outcome measure)

They expect to complete studies in April 2010;

Spectrum Pharmaceuticals (SPPI) Corporate Event Announcement Notice | TradingMarkets.com

Announcement date: 3/29/2010 - After Market
Earnings Quarter: Q4

[bongbabu]

Near term catalysts:

Fusilev FDA meeting
Acceleration of sales - Zevalin & Fusilev
Zevalin commercial accelerators
Commence Apaziquone Multiple instillation study to expand patient pool
Ex-US Deal on Renazorb
Out licensing of non strategic compounds

Source: Corporate presentation

[zetaseven]

Spectrum Pharmaceuticals Inc. (SPPI) CEO Rajesh C Md Shrotriya buys 10,000 Shares -- GuruFocus.com

Maybe we can expect good news during these two connferences:

Spectrum Pharmaceuticals to Present at Two (2) Investor Conferences - MarketWatch