Roth Capital Reiterates Buy On Spectrum On The Back Of License Agreement With CASI


In a research report issued Friday, Roth Capital analyst Joseph Pantginis reiterated a Buy rating on Spectrum Pharmaceuticals (NASDAQ:SPPI) with a $15 price target, following yesterday’s news that the company signed a license agreement with CASI Pharmaceuticals (NASDAQ:CASI) to commercialize Zevalin, Marqibo and CE-Melphalan in China. 

Pantginis noted, “We are encouraged that these three assets will be brought to the large Chinese market. We are not changing our financial projections until we receive further clarity on the regulatory and commercialization paths for the new agreement in China. CASI is currently filing drug registration applications in China for Zevalin and Marqibo, which are already approved in the U.S. CASI anticipates that confirmatory regulatory studies will be required in China though this remains to be seen. Regarding CE-Melphalan, CASI plans to submit an import drug registration immediately following the anticipated U.S. approval. Recall that SPPI plans to submit the U.S. NDA for CE-Melphalan by year end 2014. Recall that in the 2Q14, sales of Zevalin, Folotyn and Marqibo remained flat, while Fusilev showed a 20% quarter over quarter increase in net sales. We expect Zevalin, Folotyn and Marqibo sales to remain relatively flat for the remainder of the year with incremental revenue coming from Beleodaq, which was approved in July 2014 for r/r PTCL and launched within two weeks of approval.”

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 -6.0% and a 35.6% success rate. Pantginis has a 4.0% average return when recommending SPPI, and is ranked #3245 out of 3304 analysts.

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