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Stonegate Capital Partners Updates Coverage on Spectrum Pharmaceuticals, Inc. (NasdaqGS: SPPI)

DALLAS, TX / ACCESSWIRE / October 10, 2017 / Spectrum Pharmaceuticals, Inc. (SPPI):


Spectrum Pharmaceuticals, Inc. (SPPI) is focused on the acquisition, development and commercialization of proprietary drugs, primarily addressing the oncology/hematology markets. Spectrum's business strategy involves in-licensing or acquiring diversified drugs as well as creating an expanding pipeline of prospective candidates in late-stage Phase 2 and Phase 3 clinical trials. Over the years, the Company has developed comprehensive in-house clinical development/regulatory capabilities, along with an extensive commercial network, including a direct sales force in the U.S. and distributors in Europe and Japan for its marketed products. Spectrum's diverse portfolio consists of six marketed oncology drugs and a pipeline with three advanced stage products that address sizable markets. Spectrum Pharmaceuticals is headquartered in Henderson, Nevada, and as last reported, the Company had 227 employees.


Over the last several quarters, Spectrum's primary focus has shifted beyond its established portfolio of niche cancer drugs to opportunities for its newer drugs, with three in its late-stage pipeline (Poziotinib, Rolontis™, and Qapzola™), and all of which have meaningful competitive advantages and address indications with significant populations. In our opinion, the success of these drugs has the potential to transform the Company outlook in a relatively short time.

  • Poziotinib - This novel oral, pan-HER inhibitor has shown single agent clinical activity in some multi-billion dollar indications, including breast, gastric, lung, and colorectal cancers. Spectrum and its Korean partner, Hanmi Pharmaceutical Co., are currently conducting separate Phase 2 clinical trials that could read out in 2017/2018. Also, Spectrum will present its most recent data from its ongoing Phase 2 study as part of a collaboration with MD Anderson Cancer Center evaluating Poziotinib in EGFR Exon 20 Mutant Non-Small Cell Lung Cancer at the 18th International Association for the Study of Lung Cancer (IASLC) World Conference on Lung Cancer in Yokohama, Japan, on 10/18/17. The Company additionally plans to start its own multi-center trial following impressive results to date.
  • Rolontis™ - In a Phase 2 trial for Rolontis™, Spectrum's long-acting granulocyte colony-stimulating factor (G-CSF) for neutropenia, the drug showed non-inferiority in the two highest doses and superiority in the highest dose over non-biosimilar Neulasta®, Amgen's (NYSE:AMGN) $4 billion blockbuster drug. If results are duplicated in ongoing Phase 3 trials, Spectrum could file a Biologics License Application (BLA) in the U.S. as early as 2018 and in Europe in 2019.
  • Qapzola™ - Qapzola™ is a novel tumor-activated drug for the treatment of bladder cancer, which recently began enrolling for a registrational Phase 3 study. The current study is being conducted under SPA and has the benefit of being designed following results of earlier work as well as FDA input.
  • Evomela® - In May 2016, Spectrum began marketing Evomela®, a conditioning treatment used prior to stem cell transplantation in patients with multiple myeloma, a highly prevalent cancer that accounts for 1% to 2% of all cancers. Evomela® sales have increased dramatically since its launch, reaching $16.2M total for FY16 and most recently $10.1M for Q217. We look for sales to continue to gain momentum in 2017 as leading transplant facilities recognize Evomela's® notable advantages over competing products including a lack of propylene glycol, increased stability, longer shelf life and ease of use.
  • Leverage in the marketplace - One of Spectrum's strongest assets is its highly qualified management team. In addition to having a history of growing profitable business ventures, this team brings a depth of experience in developing and marketing oncology drugs with some of the largest pharmaceutical companies in the world. Additionally, SPPI has the experience and infrastructure to quickly bring new therapies to market, having successfully launched its 6th drug in May 2016.
  • Valuation - On an EV/S basis for 2017E, the Company currently trades at a 9.6x multiple vs. the median of its peers at 17.4x, a valuation that we believe does not fully factor in Spectrum's promising pipeline. See full report for details.

The full report can be accessed by clicking on the following link:


About Stonegate Capital Partners

Stonegate Capital Partners is a Dallas-based corporate advisory firm dedicated to serving the specialized needs of small-cap public companies. Since our inception, our mission has been to find innovative, undervalued public companies for our network of leading institutional investors who seek high quality investment opportunities.

SOURCE: Stonegate Capital Partners