|Spectrum Pharma: Buyout Rumors Persist|
|Friday, 07 August 2009 12:27|
Unconfirmed rumors of a SPPI buyout were reported by TheFlyontheWall. Shares of Spectrum Pharmaceuticals (Nasdaq: SPPI) jumped 7.81% in Friday morning trading.
I first reported that Bayer Schering (BYERF.PK) could make an offer to acquire SPPI.
Reni J. Benjamin, Rodman and Renshaw biotech analyst, told Jonathan Moreland of RealMoney, “[c]ompany's like Bayer or Bristol-Myers (NYSE: BMY) may also look at the company more seriously if they are able to successfully market Zevalin.”
I reported SPPI rose 7.16% on speculation that it may be targeted for acquisition.
Adam Feuerstein of TheStreet.com (Nasdaq: TSCM) reported he was skeptical about an SPPI buyout.
SPPI announced that it acquired the 100% of the rights to RenaZorb® which is currently being studied in trials for hyperphosphatemia in patients with chronic kidney disease.
SPPI is scheduled to report Q2 earnings via webcast on
SPPI’s move to acquire all of the rights to RenaZorb® indicates to me that Allergan (NYSE: AGN), who has been working to establish its urological drug division, may now be interested in bidding on SPPI.
While this is merely speculation on my part, the possibilities certainly appear to be growing, rather than shrinking, along with SPPI’s share price.
Keep your eye on SPPI.
Disclosure: Long SPPI.