|Institutional Investors Buy $21 Million of Spectrum Stock on eve of FDA decision (Nasdaq: SPPI)|
|By Staff and Wire Reports|
|Wednesday, 01 July 2009 00:23|
At 9:30 PM ET on Tuesday evening, Spectrum Pharmaceuticals (Nasdaq: SPPI) announced yet another direct offering from an institutional investor. This is the third such offering since late May. SPPI has pocketed a little over $50 million from selling shares directly to investors over the past month.
While this seemed odd to some investors, others point out that the company will need a cash injection to help ensure a successful launch of Zevalin, whose supplemental Biologics License Application [sBLA] for expanded use as a first line consolidation therapy for patients with non-Hodgkin’s lymphoma is pending a decision from the U.S. Food and Drug Administration.
Other investors feel it is also out of character for SPPI to make such an announcement at 9:30 PM ET on the eve before Zevalin’s PDUFA date, which is scheduled this Thursday, July 2, but suspicions exist that SPPI could announce the outcome of the Zevalin review early Wednesday or Thursday morning.
Assuming the sBLA is approved, which appears likely based on a European Commission decision and because the drug has clearly shown safety and effectiveness in treating patients with non-Hodgkin’s lymphoma, this offering would provide the company better financial positioning to address a patient population which would increase by over 18,000.
With just over $100 million in cash, approximately 39 million outstanding shares, and two pending cancer drug reviews, it appears that SPPI remains strong and well-positioned for the future.
Spectrum Pharmaceuticals to Benefit from FDA Action on Zevalin?