Spectrum Pharmaceuticals, Inc. (Nasdaq:SPPI), a biotechnology company with fully integrated commercial and drug development operations with a primary focus in oncology, today announced that its Board of Directors has authorized the purchase of up to $25 million of its common stock through the end of 2012.
A stock buyback, also known as a "share repurchase", is a company's buying back its shares from the marketplace. You can think of a buyback as a company investing in itself, or using its cash to buy its own shares. The idea is simple: because a company can’t act as its own shareholder, repurchased shares are absorbed by the company, and the number of outstanding shares on the market is reduced. When this happens, the relative ownership stake of each investor increases because there are fewer shares, or claims, on the earnings of the company.
“I am pleased to announce this share repurchase program,” said Rajesh C. Shrotriya, MD, Chairman, Chief Executive Officer, and President of Spectrum Pharmaceuticals. Dr. Shrotriya added, “Spectrum’s Board of Directors and senior management have confidence in our Company and believe repurchases of Spectrum stock represent an attractive opportunity to enhance long-term shareholder value. Furthermore, we are confident in the projected cash flows from our core products and believe that this will not hamper our ability to continue to fund future growth through our pipeline or other strategic growth opportunities. Spectrum has no current need to raise financing for its daily operations and current research and development programs.”
Stock will be purchased from time to time, in the open market, through block trades, through 10b5-1 plans, or through privately negotiated transactions in compliance with Securities and Exchange Commission guidelines. The Company expects the stock repurchase program to help partially offset potential dilution from outstanding warrants and equity incentive programs. The timing and actual number of shares repurchased will depend on a variety of factors including price, market conditions and corporate and regulatory requirements. Purchases may be made beginning immediately and ending at such time as the authorized funds are spent or the program is discontinued. The program does not obligate Spectrum to acquire any particular amount of common stock, and the program may be modified or suspended at any time at Spectrum’s discretion.
Glancing through our BioMedReports FDA Calendar of trade catalysts we can see that SPII is expecting Phase II top-line results of progression-free survival and response rate during the third quarter of this year for its PXD101 with Paclitaxel and Carboplatin.
Spectrum Pharmaceuticals has a broad and diversified portfolio of proprietary drugs in the fields of oncology and urology. Its product pipeline includes: Zevalin® (ibritumomab tiuxetan) indicated for the treatment of Non-Hodgkin's Lymphoma; Fusilev®(Levoleucovorin) indicated for the treatment of Osteosarcoma; Ozarelix indicated for the treatment of prostate cancer; Ortataxel indicated for the treatment of taxane-refractory tumors; Satraplatin, indicated for the treatment of non-small cell lung cancer (NSCLC); RenaZorb(TM) indicated for the treatment of hyperphosphotemia; SPI-205 indicated for chemotherapy induced neuropathy; SPI-1620 indicated as an adjunct to chemotherapy; Elsamitrucin indicated for the treatment of advanced solid tumors; Lucanthone indicated for the treatment of malignant brain tumors etc.
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