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Spectrum (SPPI) Earnings and Sales Beat Estimates in Q3

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Spectrum Pharmaceuticals, Inc. incurred an adjusted loss of 17 cents per share in the third quarter of 2018, narrower than the Zacks Consensus Estimate of a loss of 21 cents but wider than the year-ago quarter loss of 11 cents per share.

Quarterly revenues came in at $25.3 million, down 21.4% from the year-ago quarter. The top line, however, beat the Zacks Consensus Estimate of $24.6 million.

Spectrum Pharma’s shares have declined 32.3% so far this year compared with the industry’s decrease of 2.7%.

Quarter in Detail

Total product sales came in at $24.6 million, down 23.8% year over year. Sales were generated by six marketed products — Fusilev ($0.6 million), Folotyn ($11.3 million), Zevalin ($1.5 million), Marqibo ($1.1 million), Beleodaq ($3.2 million) and Evomela ($6.9 million). Evomela is facing pricing pressure due to generic entry.

License fees and service revenues were $0.7 million compared with $5.2 million in the prior-year quarter.

Adjusted research & development expenses were $20.2 million, up 53% from the year-ago quarter. Adjusted selling, general and administrative spending was up 3.4% to $16.6 million.

2018 Guidance

The company tightened its revenue guidance range for 2018 to $100-$110 million from the previous guidance of $95-$115 million. The company expects to have enough liquid funds to continue its operations into 2020.

Pipeline Update

Spectrum Pharma is evaluating one of its key pipeline candidates, poziotinib, in several mid-stage studies for the treatment of lung cancer and breast cancer. In September, the company presented updated interim data from a phase II study evaluating poziotinib in heavily pre-treated non-small cell lung cancer (“NSCLC”) patients with an exon 20 mutation in EGFR or HER2.

The candidate achieved confirmed overall response rate (“ORR”) of 43%, disease control rate (”DCR”) of 90% and median progression free survival (“PFS”) of 5.5 months in patients with EGFR mutation. The confirmed ORR was 42%, DCR was 83% and median PFS was 5.1 months in patients with HER2 mutation.

The company successfully completed two phase III studies on its another pipeline candidate, Rolontis, which showed that the candidate was non-inferior to Amgen Inc.’s (AMGN - Free Report) Neulasta in improving duration of severe neutropenia in patients with breast cancer.

Spectrum Pharma is planning to submit a Biologics License Application (“BLA”) by the year end, following a positive pre-BLA meeting with the FDA.

In October, the FDA approved Khapzory (levoleucovorin) for three indications. The drug is approved as a rescue after high-dose methotrexate therapy in patients with osteosarcoma to reduce toxicity associated with overdosage of folic acid antagonists or impaired methotrexate elimination and for treating metastatic colorectal cancer in combination with fluorouracil.

Spectrum Pharmaceuticals, Inc. Price, Consensus and EPS Surprise

 

Spectrum Pharmaceuticals, Inc. Price, Consensus and EPS Surprise | Spectrum Pharmaceuticals, Inc. Quote

Zacks Rank & Stocks to Consider

Spectrum Pharma currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the biotech sector are Vertex Pharmaceuticals (VRTX - Free Report) and CRISPR Therapeutics (CRSP - Free Report) . Both the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Vertex’s earnings per share estimates have moved up from $3.75 to $3.83 for 2018 in the past 30 days. The company delivered a positive surprise in all the trailing four quarters with an average beat of 18.94%. Share price of the company has increased 20.3% in a year.

CRISPR Therapeutics’ loss per share estimates narrowed from $2.95 to $2.92 for 2018 in the last 60 days. The company delivered a positive earnings surprise in two of the trailing four quarters, with an average beat of 9.18%. The company’s shares have rallied 60.6% year to date.

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