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Spectrum (SPPI) Earnings, Sales Beat Q3 Estimates

Zacks Equity Research
Updated

Spectrum Pharmaceuticals, Inc. SPPI incurred a loss of 22 cents per share in the third quarter of 2017, slightly narrower than the Zacks Consensus Estimate of a loss of 23 cents and in line with the year-ago loss. However, adjusted loss came in at 11 cents, wider-than the year ago loss of 7 cents.

Shares of the company are up more than 4.42% in after-hours trading on Nov 2 following the earnings release. Spectrum Pharma’s shares have significantly outperformed the industry so far this year. The stock has gained 334.1% against the industry’s registered decline of 0.1%.

Quarterly revenues came in at $36.4 million, up almost 9% from the year-ago quarter. The top line also surpassed the Zacks Consensus Estimate of $33.15 million.

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Quarter in Detail

Total product sales came in at $31.2 million, up 3.2% year over year. Spectrum Pharma earns revenues from six marketed products — Fusilev ($1.8 million), Folotyn ($11.6 million), Zevalin ($2.7 million), Marqibo ($1.2 million), Beleodaq ($3.4 million) and Evomela ($10.5 million).

License fees and service revenues surged 65.4% year over year to $5.2 million, which includes a milestone payment of $5 million for achieving approval of Folotyn in Japan.

Adjusted research & development expenses were $13.2 million, up 3.3%. Adjusted selling, general and administrative spending was up 3.1% to $16.1 million.

Pipeline Update

Spectrum Pharma is evaluating its lead pipeline candidate, poziotinib, in two separate phase II studies for the treatment of lung and breast cancer. During the quarter, the company had announced results from a preliminary analysis of the lung cancer study. The candidate achieved an objective response rate (ORR) of 73% in patients with EGFR exon 20 insertion mutations. A multicenter study has also been initiated to expedite the development of poziotinib for this indication.

The company completed enrolling patients in phase III study, ADVANCE, on Rolontis in July, which is ahead of schedule. The study is conducted under a Special Protocol Assessment (“SPA”) agreement with the FDA evaluating Rolontis for treatment of chemotherapy-induced neutropenia in patients with breast cancer. Top-line data from the study is expected in the first quarter of 2018. The company expects to file a biologics license application (“BLA”) in 2018.

It is currently enrolling patients for an additional phase III study, RECOVER, to support the ADVANCE study data, to be filed with the BLA.

The company’s bladder cancer candidate, Qapzola, is currently in a phase III study.

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 carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the pharma sector include Agenus Inc. AGEN, Myriad Genetics, Inc. MYGN and Exelixis, Inc. EXEL, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Agenus’ loss estimates remained stable at $1.17 for 2017 and narrowed from $1.40 to $1.36 for 2018 over the last 30 days. The company delivered a positive earnings surprise in three of the trailing four quarters with an average beat of 4.27%.

Myriad’s earnings per share estimates increased from $1.02 to $1.04 for 2017 and from $1.15 to $1.19 for 2018 over the last 30 days. The company delivered a positive earnings surprise in three of the four trailing quarters with an average beat of 6.17%. The company’s shares soared 71.3% so far this year.

Exelixis’ earnings per share estimates remained stable at 26 cents for 2017 and increased from 63 cents to 68 cents for 2018 over the last 30 days. The company delivered positive earnings surprises in all the trailing four quarters with an average beat of 572.92%. The company’s shares rallied 71.2% so far this year.

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