Spectrum Pharmaceuticals (Nasdaq: SPPI) PPS estimate

[BioBull]

If you want to maximise the impact of the fda decision that go for a Sep Call @1.05..to hedge the risk go for $5 Puts at 35 cents. if it goes to $8 and above the call will make money and if it goes below current price the put will make money..

[ccraigmorris]

I missed a great chance yesterday to increase my SPPI position of 3803 shares at 6.32 pps cost basis, but there may be another chance or two this month. Very high chance the 7 Sep Zevalin decision will be positive, as clarified a top of this thread. Good chance the 7 Oct decision on Fusilev will be positive, too, for similar reasons. An acquisition deal by Bayer, if in the works, would likely follow positive Zevalin news. Regardless, SPPI's plan to provide advise and training to US oncologists currently inadequately trained to apply this cutting edge radio therapy is key. No doubt, the big pharma competitors will be unhappy and will redouble their efforts to keep US oncologists skeptical and inadequately educated about Zevalin. But the new FDA will not play along anymore, I think. For all the reasons noted above and elsewhere, SPPI is an excellent investment opportunity this summer.

[nosmalttocs]

I'm in agreement,,With what DD i've gleaned so far, A) A proven set of drugs. B) upcomming FDA dates. ( Two in the next two months ).. C) re-occuring rumor mill of buy-outs lately. The only analyst I know who knowingly bashes is Adam F. from " the street.com" and we all know that his track record ISN'T pristine ( DNDN ) :-)

[lyme3m]

Adam has still given SPPI a target price of $9-$10 today. Not after the approvals; today. I think that price pre-approval is accurate. SPPI should have been trading at that weeks ago.

Post Zevalin approval I feel a $500 million market cap is reasonable; Or ~$13/share. Post Fusilev approval I feel a $800 million to $1 billion market is attainable; Or $24/share.

[pcandrews]

I was in this one about a month ago. I spent around 3-4 weeks in the red until it bounce back and I sold to break even at 6.17. I regret it now. Does anyone think this is worth re-entry?

[lyme3m]

I believe Monday we're going to see SPPI & VION start to run. VION is off topic though.

I think if you can get in below $7 you're going to make decent money. SPPI is in a very unique position compared to any late stage drug manufacturer since they have two upcoming FDA sBLA approval dates from now till October 8th.

I know someone here said the September 7th dates was 'just' for an approval of first line application. I don't know how anyone could see that as 'just' anything because it completely changes the earning potential for Zevalin. If approved there will be a very nice market adjustment.

Check out the recent institution activity for SPPI on MFFAIS.

[lyme3m]

This should also be mentioned even though I despise the buyout rumour bandwagon everyone is on lately. Although very contradictory, the buyout rumour should at least be considered.

This is speculation on my part and purely my opinion; A buyout will not happen before the September 7th Zevalin sBLA approval date. However, IF Zevalin is approved on September 7th, any company wanting Zevalin has a 4 week window to buy SPPI before the October 8th Fusilev sBLA approval. Any company wanting to purchase SPPI would want to do so to acquire Zevalin, Eoquin, and potentially Renazorb. If said company wants to drag their feet after Zevalin approval, misses the 4 week window, and Fusilev gets approved, they will subsequently pay a higher premium for SPPI. While Fusilev is a great drug, it does not have the earning potential of Zevalin.

Opinions anyone?

[MANDINGO1100]

THe buy out rumor alone should raise the price, even if not true

[higgiebaby]

I believe Monday we're going to see SPPI & VION start to run. VION is off topic though.

I think if you can get in below $7 you're going to make decent money. SPPI is in a very unique position compared to any late stage drug manufacturer since they have two upcoming FDA sBLA approval dates from now till October 8th.

I know someone here said the September 7th dates was 'just' for an approval of first line application. I don't know how anyone could see that as 'just' anything because it completely changes the earning potential for Zevalin. If approved there will be a very nice market adjustment.

Check out the recent institution activity for SPPI on MFFAIS.

That mffais site is awesome! Thanks for that info. Always wanted to find a place to see who is buying what and how much in terms of institutional investors.

[lyme3m]

Well thanks to the the market dip over the last few days my SPPI and VION are sideways. I had expected them to start to run in anticipation of their respective FDA dates this week but am now looking at next week for VION and the same or a touch later for SPPI.

Although, as of today I'm a little more hopeful because one of the signs I personally look for is starting to happen; an increase in Yahoo! Message board posts on the companies page.