Spectrum Pharmaceuticals, Inc. (SPPI) More Than Doubles Its Positive Responses Goal with Slam Dunk Updated Phase II Trial; H.C. Wainwright Chimes In
Edward White sees positive road ahead after SPPI's compelling cancer asset hits ORR of 73% in Exon 20.
Spectrum Pharmaceuticals, Inc. (NASDAQ:SPPI) investors were met with encouraging data today with the biotech firm’s new non-small cell lung (NSCLC) cancer drug poziotinib impressing at the International Association for the Study of Lung Cancer 18th World Conference on Lung Cancer (WCLC). Spectrum’s updated data for poziotinib reveals an objective response rate (ORR) of 73%, which bolsters proof of meaningful anti-tumor activity in NSCLC with EGFR exon 20 insertion mutations. As a result, with eight partial responses in tow witnessed in updated Phase II data, a throng of bulls are storming the Street today to invest in this drug maker, sending shares on a racing 47% upturn.
The ORR success “bodes well” for the development of Spectrum’s cancer asset, says H.C. Wainwright analyst Edward White, who maintains a Buy rating on the stock with a price target of $20. (To watch Arce’s track record, click here)
Arce provides some context on the trial, noting “evidence of central nervous system (CNS) activity in a patient with CNS metastasis and another patient with leptomeningeal disease (LMD), a finding that surprised us and could lead to an expansion of targeted markets. Tumor shrinkage was observed in all 11 patients who reached their first scan. Toxicities included rash, diarrhea, paronychia, and mucositis, all of which are consistent with those previously described for poziotinib and other TKIs. A dose reduction was reported in 55% of the patients. The company previously reported that it could apply for breakthrough designation for poziotinib if three or more positive responses were observed in the trial. This result is more than twice that goal, and Spectrum’s next steps involve meeting with the FDA to discuss a potential FDA registration strategy for poziotinib, which could include filing for breakthrough designation in 1Q18. It is also possible the FDA may allow the company to run a pivotal Phase 2 study.”
TipRanks analytics exhibit SPPI as a Buy. Out of 3 analysts polled by TipRanks in the last 12 months, all 3 are bullish on Spectrum stock. The consensus average price target stands at $15.67.