Spectrum Will Sink Until 2013
Spectrum Pharmaceuticals (SPPI) has much to be proud of after posting its very first fully profitable year in 2011. The company’s newly gained confidence has encouraged it to dash out of the starting gates and set its goals higher than ever, looking to continue its meteoric growth. In 2011, Spectrum recorded total revenue of $193 million, a 160% increase from 2010, the majority of that profit due to its two FDA approved and on the market drugs Zevalin and Fusilev. Rajesh C. Shrotriya the president of Spectrum released a statement on its landmark year, “Today, Spectrum Pharmaceuticals is in a strong position of solid growth over the next 5 years.” With that statement Spectrum has two drugs, Apaziquone and Belinostat. Shrotriya believes Apaziquone will get through clinical trials and be ready for the market in late 2012. Along with these two drugs, Spectrum has a large batch of 7 separate drugs in phase 2, phase 1, and preclinical trials that it is developing simultaneously over the next few years.
Spectrum has been getting a decent amount of positive news from sites such as The Motley Fool, and ‘strong buy’ ratings from sites such as Stocknod.com. Yet, the stock price has declined 23% from the beginning of January to present. By performing a solid analysis of the products sold by Spectrum, as well as where it stands with its pipeline drugs, I see no upside potential for profits this year. I believe the share price will fall until the end of 2012. To continue reading, click here.