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Old 09-23-2009, 01:42 AM   Nav to Top  #1
kabilius
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Default SPPI - FDA on October 8th

Hi all,

Spectrum Pharmaceuticals, Inc (SPPI) has an upcoming FDA on October 8th. We are within weeks to FDA decision, and the stock price has just dropped to its new low of the past weeks.

The reason for its reason drop were:
1. Pull back from the previous FDA approval in early September
2. SPPI announced to raise $50M by offering stocks to private institute

The $50M stock offering was completed on September 22nd @ $7.55 per share.
Spectrum Pharmaceuticals Receives $50 Million from Institutional Investors at $7.55 Per Share

Personally, I believe this price drop before FDA is a rare chance to load up.

Good luck,
kab
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Old 09-23-2009, 02:36 PM   Nav to Top  #2
ARN
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I've been doing some DD and it looks like this company has a lot of potential short term and long term.
If the October FDA decision goes well (and SPPI is very optimistic it will), the stock prices are sure to rebound.


/////

Spectrum Pharmaceuticals: Despite Share Offering, Still Cheap vs. Other Cancer Drugmakers -- Seeking Alpha

On Friday, Spectrum Pharmaceuticals (SPPI) announced the company sold $50 million worth of common shares at $7.55. As is often the case when a company sells additional shares, the share price fell.

Shares of SPPI closed down -4.39% to $7.18 in Friday trading.


As result of this most recent offering SPPI will now have roughly 48.5 million shares outstanding. At Friday's close, the company retained a market cap of approximately $350 million. Compared to other optionable cancer drug makers, similarly situated, SPPI’s total shares outstanding still falls below the average of 63.12 million while retaining a market cap of half the average. See table below.

Since shares fell today, some investors have expressed some concern for the move. Honestly, I would prefer that institutional investors buy shares in the open market like everyone else. I do share the sentiment with those who are frustrated with the company for agreeing to yet another offering especially since shares fell upon the early approval of Zevalin® on Friday, September 4.

Memo to the folks at Spectrum (SPPI): Stop by-passing your existing shareholders. (I hope they are listening.)

CAUSE FOR CONCERN VS. VOTE OF CONFIDENCE
So, is this recent dilution of SPPI’s common shares a cause for concern and should investors throw in the towel? Not yet.

From my view, SPPI continues to resemble a growth company. As evidenced in the daily chart above, it's still trading like a growth stock (for now).

More importantly, SPPI has a strong pipeline of cancer drugs, including Zevalin®, Fusilev®, and Eoquin®. In early October, the FDA is expected to decide whether they will expand the use of Fusilev to patients with colorectal cancer. I remain confident that Fusilev will be approved. For more details on Fusilev and Eoquin, please reference this June 19 article.

As result of the recent offering, however, previously held price targets must be adjusted - again - to account for the additional shares. On June 12, I projected SPPI would retain a market value of $1.12 billion in 12 to 18 months. So, my longer-term price target for shares of SPPI has been adjusted down - again - to $23.09.

With future growth from sales of Zevalin and Fusilev as well as the company’s collaboration agreement with Allergan (AGN) potentially worth an additional $255 million in milestone payments for the development of SPPI's bladder cancer drug Eoquin, I contend that SPPI still remains undervalued at $7.18. For more details on Zevalin's potential sales growth, interested investors should review this article from September 11.

With approximately $156 million in cash, shares are trading just under 2.3 X cash, which is relatively cheap compared to other cancer drug makers. See table below.

CONCLUSION
For all of the reasons detailed above, this most recent $50 million investment certainly looks more like a vote of confidence rather than a cause for concern. If, however, SPPI continues to bypass existing common shareholders in the future, then such action may be a cause for concern.

Again, I do hope the folks at Spectrum (SPPI) are listening.

/////
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Old 09-23-2009, 09:27 PM   Nav to Top  #3
Jaymo
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Stochastics showing overbought, about to cross the buy signal.
MACD looks like it setting up for a cross near the 0 line.

Chart looks ripe for a turn around, especially with the upcoming FDA date

Support in the 6.95 range

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Old 09-24-2009, 12:48 PM   Nav to Top  #4
chaoX
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Ok guys, yesterday Jim Cramer from "Mad Money" said "don't buy sppi" during his lightning round. He also went on to say "wait for it to drop lower". I can only assume that this news has caused the PPS of sppi to drop to a low of $6.43 today. I recommend this as a strong buy right now. The company presented at the UBS Global Life Sciences Conference yesterday outlining their business strategy. For those of you not familiar with the company, their three main drug products are:

1. Zevalin - already received FDA approval on Sept. 4 earlier this year. The company plans to work out re-imbursement issues with CMS (medicare) by November this year with final implementation by January 2010. The company has said this will be a key milestone for them. Conservatively, sales from zevalin could reach $100 million, considering the team they have working on the commercialization of the product.

Can read a bit more about Zevalin here:
How Zevalin Is Helping Spectrum -- Seeking Alpha

2. Fusilev – ‘Fusilev was approved as a rescue therapy by the FDA in March 2008 for use in patients with osteosarcoma who are treated with high-dose of folic acid antagonist methotrexate, which is a type of chemotherapy. The drug is also approved to diminish the toxicity of methotrexate. Currently Fusilev serves a relatively smaller market because osteosarcoma, a rare form of bone cancer, is diagnosed in fewer than 3,000 individuals per year in the U.S. The drug has been on the market in Europe and Japan for more than ten years, where it is marketed by Takeda, Wyeth and Sanofi-Aventis (SNY) among others. The drug fetches sales of approximately $200 million outside the U.S., according to Spectrum. According to a clinical alert issued by the American Society of Clinical Oncology, Fusilev is often used off-label to treat colorectal cancer. Unlike osteosarcoma, the market for colorectal cancer is much larger. Colorectal cancer is the third most common cancer in the U.S., affecting about 5% of the population, with up to 150,000 new cases reported each year, according to reports.’

Fusilev has an FDA action date of October 8 for colorectal cancer. Personally, I think SPPI will get the approval for Fusilev. It has been used in Europe and Japan for over 10 years and is already used to treat colorectal cancer.

Spectrum Pharma's Date With FDA

3. EOquin – for those longers, this is the company’s gem – it’s a treatment for bladder cancer. You can read up on it at the above website. The company plans to finish enrolment in two phase 3 trials for EOquin by the end of 2009.

IMO, SPPI is a strong buy right now both for the long and short term.
They have $150 million in cash, no debt, and a promising pipeline of drugs. Expect a run up for the Fusilev approval before October 8.

CONSERVATIVE PRICE TARGETS for short-term
Rally for Fusilev - $7+
Approval of Fusilev - $8 +
In the long-run the pps can be well-above $10...considering zevalin sales, fusilev sales and phase 3 results from EOquin.

CURRENT PRICE - $6.60

Spectrum Pharmaceuticals, Inc. - Events & Presentations - can listen to the conference
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Old 09-24-2009, 01:59 PM   Nav to Top  #5
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SPPI is amazing...I hate cramer!

Got in yesturday at $7...should have waited till today!

Hoping to exit at $8+ soon...very soon!
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Old 09-24-2009, 02:56 PM   Nav to Top  #6
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Yea I got in at 7.14.. Damn you Jim Cramer :)
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Old 09-25-2009, 05:45 PM   Nav to Top  #7
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Hi all,

I have no idea why the stock is still falling, but anyway, I just added more shares around the end of the trading day.

Anyways, good luck all,
kab
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Old 10-01-2009, 12:20 AM   Nav to Top  #8
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i bought some@6.39,6.74,6.83from friday to monday.
just wait.
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Old 10-02-2009, 10:33 AM   Nav to Top  #9
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in @ $6.11
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Old 10-02-2009, 03:12 PM   Nav to Top  #10
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the fda already aproved them in early sept... the oct fda is for aproval of the standalone drug for sale used only on non hodgkins lymphoma patients. basically this wont really spike just continue to grow slowly.
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