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Spectrum Pharmaceuticals, Inc. Message Board

  • nightflight2nite nightflight2nite Nov 4, 2005 8:18 AM Flag

    Disappointing earnings

    If that's the best they could do after getting Carboplatin approval(which was supposed to be different since it was not an oral product), then the propsects for the generic business do not look very promising. IMO, their only hope in this area is Imitrex & that is probably a long shot in terms of getting the GSK patent overturned.

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    • With $63 million in the bank and a market cap of just $68 million with a NDA application expected to start next year with Ph III going to start and with several Ph II, this is low risk. A reward is sure to come. The reward will not be high in absolute terms but will be relative to PPS and market cap. Most of their drugs are on the low risk side as they supplement/enhance existing treatments.

      The ANDA's were never calculated to be big money makers, but a side line to raise cash.

      If this thing falls after CC, it will be a buying opportunity. I am waiting.


      • 2 Replies to que_ser_a_sera
      • You sound like a recent investor. The areas you outlined (e.g., pipeline and market cap) are why many of invested in this Company. Over time, it has become rather obvious that the problem is management. We have seen the Board's reaction to any challenge to Raj. The trips and perks continue, and each time he speaks, we lose money. While I still hope you are correct, at a minimum, shareholders' gains will be significantly reduced as long as the status quo is maintained.

        Positive news will be viewed by the market with caution at best. If SPPI has a problem with the FDA of any significance, we will all lose our shorts in spite of the remaining pipeline. A significant approval will result in a rise that is lower than it should be and short-lived as too many long-term investors bail (breaking even or taking small profits)due to the past behavior of the stock which I believe is attributable to management greed supported by a weak Board. JMHO

      • I agree that the oncology business is relatively low-risk & the current earnings is not a reason to sell the stock. There are an awful lot of negatives priced into this stock, but if the generic prospects don't improve then why continue to put a cash drain on the company? Incidentally, the market cap is about $110MM.

    • Not Sure earnings are disappointing..wait till 10 AM...We need to know how much of the quarter the revenues represented? May be due to slow ramp up of production and distribution of carbo. If they can get the number up to $500K/quarter or so, that would be good...some hint of that in the release as the potential of reduced financing requirements are held out.

      • 1 Reply to Paxmaker
      • The carboplatin number reflects 1 full quarter, but possibly the ramp-up might increase revenues going forward. Perhaps the conference call will tell a different story, but I am not so optimistic since I have seen expectations set on other generic products & not met there as well. I was willing to give some leeway on the oral products, but now I think the generic prospects need to be on a short leash. As far as reduced needs for financing, that may be a reference to future oncology revenues.

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