A consensus appears to be forming with regard to Spectrum Pharmaceuticals (Nasdaq: SPPI). Financially sound SPPI could be targeted for acquisition by Bayer (BYERF.PK) or another specialty drug maker.
JULY 31, 2009
On Friday July 31, Jonathan Moreland covered SPPI in an article published at RealMoney.
“Biotech has been particularly hot this month. Shares of the SPDR S&P Biotech exchange-traded fund have popped more than 15% in the past three weeks alone. The oft-discussed need for big pharma to buy out smaller, promising biotech firms to fill its skimpy product pipelines seems to be breeding speculation about who could be the next target. To that point, Rodman & Renshaw biotech analyst, Reni J. Benjamin, agrees that Spectrum Pharmaceuticals could benefit from such speculation. "They Spectrum have several products that are in clinical development, and their revenue-generating products look attractive to other specialty pharmaceuticals companies. Company's like Bayer or Bristol-Myers may also look at the company more seriously if they are able to successfully market Zevalin." Benjamin's buy rating on SPPI, however, is based on the firm's solid revenue prospects and solid balance sheet. Spectrum generated $14.1 million in revenue last quarter --...”
The article is available as a premium article at RealMoney from TheStreet.com.
JUNE 30, 2009
In a June 30, 2009 article, I first pointed out that Bayer Schering (BYERF.PK), who markets Zevalin worldwide ex. US, might consider acquiring SPPI to obtain US rights for Zevalin if approved for first-line use in non-Hodgkin's lymphoma.
“Bayer Schering (Bayer) markets Zevalin in Europe and abroad - all countries ex. US. Bayer received approval for Zevalin as a first-line consolidation therapy on April 28, 2008. For details, please refer to my June 28 article.
Here are 17 good reasons why Bayer might seriously consider acquiring Spectrum Pharmaceuticals at some point in the future. Listed below are 17 ongoing clinical trials for Zevalin. Each trial is sorted by its corresponding completion date. Data source: FDA.”
A version of this article was also featured here at BioMedReports.com on June 30, 2009, here.
A recent Phase 3 trial, called FIT, showed that Zevalin was a safe and very effective first-line treatment for early-stage NHL patients. Zevalin is already approved in the US for the treatment of refractory NHL, a last resort setting.
On or before September 7, 2009, the FDA will decide whether the agency will finally approve Zevalin for first-line use in early-stage patients with NHL.
Zevalin was approved for first-line use in Europe on April 28, 2008, where the treatment is made and sold by Bayer Schering (BYERF.PK).
Over the past several weeks, I have tried to thoroughly and accurately provide investors with details on SPPI, Zevalin as well as the company's impressive pipeline of cancer drugs.
From my view, SPPI is financially sound and has tremendous potential over the next 12 to 18 months. In that time frame, my price target for SPPI is set at $31 or a market cap of $1.12 billion.
For more details, interested investors should consider reviewing my eight articles on SPPI.
Disclosure: Long SPPI
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