Roth Capital Reiterates Buy On Spectrum Pharmaceuticals Following 2Q14 Results
In a research note published August 8, Roth Capital analyst Joseph Pantginis issued a note in which he reiterated a Buy rating on Spectrum Pharmaceuticals (SPPI) with a $15 price target on the heels of the release of the company’s second- quarter results. SPPI posted an EPS of ($0.06) vs. Pantginis’s estimate of ($0.15) and consensus estimate of ($0.09). Total revenues and product sales were $46.9 million vs. Pantginis’s estimate of $42.3 million and consensus estimate of $41.5 million.
Pantginis wrote, “SPPI is going into an eventful second half of the year, with several clinical milestones. Enrollment in the Phase II study of SPI-2012 in chemotherapy induced neutropenia is complete and all patients will be fully dosed by the end of August. SPPI expects to have an end of Phase II meeting with the FDA and make a Phase III “go/no-go” decision later in the year. With regards to Captisol-Enabled Melphalan, SPPI is preparing the NDA for expected filing by the end of the year. SPPI expects to have abstracts presented at ASH 2014 for Beleodaq and potentially have abstracts submitted for conferences next year regarding CE-Melphalan. On the commercial front, recall that Beleodaq was approved in July for r/r PTCL and launched within two weeks of approval. Sales of Zevalin, Folotyn and Marqibo remain flat, while Fusilev showed a 20% increase in net sales from $22.2 million in 1Q14 to $26.6 million in 2Q14. We expect Zevalin, Folotyn and Marqibo sales to remain relatively flat for the remainder of the year with incremental revenue coming from the newly approved Beleodaq. We look forward to see how the company’s marketing efforts are reflected in their product sales, particularly with regards to the newly approved Beleodaq. We also anticipate the upcoming clinical milestones with regards to SPI-2012 moving forward decision and the filing of the Melphalan NDA.”
Pantginis added, “We continue to look at the totality of the revenue streams for the company and the potential return to profitability. Additionally, the anticipated revenue streams from Beleodaq and CE-Melphalan should continue to bolster Spectrum’s business model.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Joseph Pantginis has a total average return of -8.3% and a 36.4% success rate. Pantginis has a -3.7% average return when recommending SPPI, and is ranked #3172 out of 3219 analysts.
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