On October 3, 2013, Spectrum Pharmaceuticals, Inc. (the "Company"), entered into an Amendment (the "Amendment") to the License and Collaboration Agreement, dated February 2, 2010, as amended, by and between the Company and Topotarget A/S, a Danish corporation ("Topotarget"). Under the Amendment, among other things, the parties agreed to restructure the agreement to provide the Company with the right and the responsibility to manufacture (either through itself or one or more contract manufacturers) clinical, commercial and named patient supplies of Belinostat world-wide for an initial period from the amendment effective date through the date that is five (5) years from the new drug application approval date and Topotarget being relieved of its existing responsibility regarding the same. Additionally, the parties agreed for Topotarget to purchase its requirements from the Company based on periodic forecasts and at cost plus percentage for such supplies. After the initial period, absent notices of termination, the supply arrangement shall continue for renewable periods.
I think the market is beginning to understand that HALO will likely earn 5% on 20bn of sales..... the possibility is in clear sight. Then you add their prop programs - all juice - currently way too cheap
PDLI has 300+/yr revenue based on 1-3% royalties which expire soon and has a market cap of 1bn. Halo is just starting out - better royalty levels, more products, lots more years...
what matters is Asset Value, not share price plus NI Spread.
Rates are going up - or at least everyone thinks they are going up, so all Interest Rate sensitive stocks are going down (except banks!) - of all the mREITs Two is the most like a bank. It is the most likely to protect asset value and then be positioned best to earn the new higher spreads.
This is only phase one - curve steepening - long rates (Mortgages) going up, short rates fixed - i.e new money earns BIGGER spreads. Two has a good plan for this
Phase 2 is more difficult (2016 and beyond) - here we have a flattening as short rates go up and long rates hold still or go down! spreads tighten and returns get ugly. This the phase to worry about, but not yet.
TWO is the only mREIT to invest in at this time, and don't worry about share price. NAV is 10.35 and I would think that mgt has held that in the most part.
NM has expanded their fleet in the recession very substantially without dilution. So we already have the ships - some funding at some point is likely but not yet.
Thrx and GSK got a positive CHMP option today after 1 approval and positive FDA comm in the USA - total 2 drugs.
So THRX has 1 approval in the USA and 1 likely to be approved in the USA
and 1 likely to be approved in the EMU
Royalty rate 5-15%
Mkt Cap 4bn
HALO - 2 approved in EMU and one likely to be approved.
Mkt Cap $1bn
Royalty Rate 5%
warning: all my numbers are ish!
I own both - but HALO appears a better deal, thro THRX is nice too
I sold all the last 2 days 10000 shares and switched into TWO - much better managed, much lower risk - ARR management has no clue.
I sold ARR once I released they were clueless.
TWO has the best management - so I bgt
CIM - I have held a long time but as we know so little of them because of a/c issues I sold them too and bgt TWO
Only othe mREIT to consider until the 10-Y gets to 3.5 is CMO