Zacks Investment Research | May 03, 2018 11:31PM ET
Spectrum Pharmaceuticals, Inc. (NASDAQ:SPPI) incurred a loss of 16 cents per share in the first quarter of 2018, narrower than the Zacks Consensus Estimate of a loss of 24 cents and the year-ago quarter loss of 30 cents per share. However, adjusted loss came in at 15 cents, wider-than the year ago loss of 14 cents.
Quarterly revenues came in at $30.5 million, up 4.8% from the year-ago quarter. The top line also beat the Zacks Consensus Estimate of $26.1 million.
Spectrum Pharma’s shares have underperformed the industry so far this year. The stock has lost 16.5% against the industry’s decline of 5%.
Quarter in Detail
Total product sales came in at $28.1 million, down 8.8% year over year. Sales were generated by six marketed products — Fusilev ($0.6 million), Folotyn ($12.7 million), Zevalin ($3 million), Marqibo ($0.9 million), Beleodaq ($2.7 million) and Evomela ($8.1 million). Evomela is facing pricing pressure due to generic entry.
License fees and service revenues were $2.4 million, down 26.8% from the prior-year quarter.
Adjusted research & development expenses were $17.1 million, up 15.7% from the year-ago quarter. Adjusted selling, general and administrative spending was up 30.1% to $20.4 million due to higher legal fees related to the termination of its former chief executive officer. The company is focused on the development of its two pipeline candidates, poziotinib and Rolontis.
2018 Outlook Raised
The company increased its revenue guidance for 2018 to the range of $95-$115 million (previously $90-$110 million). The company expects to have enough liquid funds to continue its operations into 2020.
Pipeline Update
Spectrum Pharma is evaluating poziotinib in two separate phase II studies for the treatment of lung cancer and a phase II study for breast cancer. In April 2018, the company published results from an analysis of the first 11 patients from the lung cancer study being conducted with MD Anderson. The candidate achieved an objective response rate of 64% in patients with EGFR exon 20 insertion mutations. The company is planning to evaluate poziotinib in several solid tumors with exon 20 mutations.
In February 2018, the company announced the successful completion of the phase III ADVANCE study on Rolontis. The candidate demonstrated non-inferiority to Amgen Inc.’s (NASDAQ:AMGN) Neulasta in improving duration of severe neutropenia in patients with breast cancer.
It has completed enrolling patients for an additional phase III study, RECOVER. Data from this study will be included in the biologics license application (“BLA”) along with ADVANCE study data to be filed with the FDA.
The company expects to file a BLA for Rolontis in the fourth quarter of 2018.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.