Editor's Note

This biotech company put itself up for sale. This company actually has products and more in the pipeline.


New positions are only added on Wednesday and Saturday except in special circumstances.


SPPI - Spectrum Pharmaceuticals - Company Description

Spectrum Pharmaceuticals, Inc. develops and commercializes oncology and hematology drug products. The company markets six drug products, including FUSILEV for patients with metastatic colorectal cancer and rescue after high-dose methotrexate therapy in osteosarcoma, and to diminish toxicity and counteract the effects of impaired methotrexate elimination and of inadvertent overdosage of folic acid antagonists; FOLOTYN, a folate analogue metabolic inhibitor for peripheral T-cell lymphoma (PTCL); ZEVALIN injection for patients with B-cell non-Hodgkin's lymphoma; MARQIBO, a sphingomyelin/cholesterol liposome-encapsulated formulation for adult patients with Philadelphia chromosome-negative acute lymphoblastic leukemia; BELEODAQ injection for PTCL; and EVOMELA for use as a conditioning treatment prior to autologous stem cell transplant in multiple myeloma patients. It is also developing POZIOTINIB for treating breast and lung cancer; ROLONTIS for chemotherapy-induced neutropenia; and QAPZOLA for intravesical instillation in post-transurethral resection of bladder tumors in patients with non-muscle invasive bladder cancer. The company sells its drugs through group purchasing organizations, wholesalers, and directly in the United States; and through distributors in Europe. Spectrum Pharmaceuticals, Inc. has licensing and development agreement with Cell Therapeutics, Inc.; license agreement with Merck & Cie AG, Sloan-Kettering Institute, and Cydex Pharmaceuticals, Inc.; development and commercialization collaboration agreement with Allergan, Inc.; collaboration agreement with Nippon Kayaku Co., LTD.; licensing and collaboration agreement with Onxeo DK; and co-development and commercialization agreement with Hanmi Pharmaceutical Company. The company was formerly known as NeoTherapeutics, Inc. and changed its name to Spectrum Pharmaceuticals, Inc. in December 2002. Spectrum Pharmaceuticals, Inc. was founded in 1987 and is headquartered in Henderson, Nevada. Company description from FinViz.com.

In late June a report broke that Spectrum said it had hired Jefferies Group to explore potential options including the sale of the company. The rumor has not been verified but shares are continuing to move higher.

Spectrum has six cancer and blood disease treatments on the market with two more in late stage trials and several more in early stage development. This is not a company fully of hype but a company with real products and more in the pipeline. There should be multiple companies interested in making an offer.

Shares are on the verge of making a new high and that could trigger some short covering and price chasing if investors believe there will be a breakout ahead of a potential offer.

Earnings Aug 2nd.

I am not recommending an option because they are over inflated on the sales speculation.

Buy SPPI shares, currently $22.93, stop loss $21.85.


No New Bearish Plays