Shares of Spectrum Pharmaceuticals, Inc. (SPPI) touched a new 52-week high of $7.60 on Thursday. The company posted a decline in fourth quarter earnings as last year period recorded stock warrant gains, but came ahead of Street view.
The Irvine, California-based biotechnology company reported fourth quarter earnings of $4 million or 8 cents a share, down from $10 million or 20 cents a share last year. The quarterly results included, among other things, loss related to change in fair value of common stock warrant liability of $3.33 million, compared to a gain of $19.83 million last year.
Excluding special items, earnings were $9.78 million, compared to loss of $8.24 million last year. Revenue surged to $33.95 million from $8.62 million. Analysts had expected a loss of 5 cents a share on revenue of $19.57 million.
Product sales for the quarter was $31 million, while licensing fees amounted to $3 million. Sales of lymphoma drug Zevalin soared 54 percent to $8 million. Sales of Fusilev, which is used to treat the side effects of the chemotherapy drug methotrexate, was $23 million. Fusilev drug is approved for use in patients who are being treated for osteosarcoma, a type of bone cancer, and to reduce the toxicity of methotrexate.
Research and development expenses, a key overhead for pharmaceutical companies, rose to $7 million from $4 million, mainly due to in-licensing of compounds and continued investment in clinical trials.
The company said the U.S. Food and Drug Administration (FDA) has set April 29, 2011 as the key PDUFA action date for Fusilev in treating colorectal cancer. The company also anticipates FDA decision on bioscan removal for Zevalin before the end of 2011, and initiation of a diffuse large B-cell lymphoma trial for Zevalin in 2011.
Spectrum expects to complete enrollment in registrational Belinostat study and file rolling new drug application (NDA) for peripheral T-cell lymphoma in 2011/2012. The company anticipates to file NDA for Apaziquone in 2012 in treating bladder cancer.
Spectrum stock gapped open sharply higher March 10 at $7 compared to previous day's close of $6.90. The stock touched a new high of $7.60 on Thursday. The stock closed Thursday's regular trading up 9.86 percent at $7.58 on a volume of 4.06 million shares on the NASDAQ stock market. The stock traded between $3.67 and $7.60 during the past 52 weeks.