Spectrum Represents An Undervalued Player With Significant Upside, Says H.C. Wainwright


In a research report released August 8, H.C. Wainwright analyst Reni Benjamin reiterated a Buy rating on Spectrum Pharmaceuticals (SPPI) with a $15 price target, following the release of the company’s second-quarter results. The company reported a net loss of $(3.6) MM or $(0.06) per share. Product sales from four marketed drugs totaled $46.9 MM, exceeding Benjamin’s expectations of $40.6 MM. Total R&D expenses were $11.4 MM, in line with Benjamin’s estimate of $12.0 MM for the quarter. SG&A expenditures were $25.4 MM, in line with Benjamin’s estimate of $24.7 MM. With five drugs currently being marketed, Benjamin projects that total revenues could exceed $199 MM in 2015.

Benjamin wrote, “A major highlight of the second quarter was the accelerated approval of Beleodaq (also called belinostat) for the treatment of patients with refractory or relapsed peripheral T-cell lymphoma (PTCL). Starting this month, Beleodaq becomes the fifth product to be incorporated into a solid portfolio of marketed oncology products including Fusilev, Zevalin, Folotyn, and Marqibo. With $135.7 MM in cash and a diverse pipeline of assets in clinical development, we believe Spectrum represents an undervalued player with significant upside for the long-term investor.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Reni Benjamin has a total average return of 0.3% and a 41.7% success rate. Benjamin has a -5.6% average return when recommending SPPI, and is ranked #2172 out of 3219 analysts.

To read more rating news on SPPI click here.

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