Spectrum Pharma's Long-Term Potential

The trial data that Spectrum Pharmaceuticals (SPPI) presented at the American Society of Clinical Oncology conference could mean that the company has some long-term potential for investors.

A Phase II study of Zevalin showed a 100% three-year overall survival and a 90% three-year progression-free survival. According to the findings, Zevalin could reduce the need chemotherapy.

There was also positive data on belinostat, showing patients with partial remission at five and 13 months and an overall response rate of 10.5%. Four patients (21%) had no progression for more than two years.

Spectrum has jumped up just over 11% after its ASCO presentations. It is currently trading at $11.70. The mean price target for Spectrum is $18.20, according to five brokers on Yahoo! Finance.

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Spectrum has a number of drugs at various stages in its pipeline. Apaziquone, for non-invasive bladder cancer, is in late stage development. Prostate cancer treatment Ozarelix is in Phase II clinical trials. RenaZorb, a lanthanum-based nanoparticle phosphate-binding agent, is just beginning the preclinical stage. MeanwhileSPI-014, for hyperphosphotemia in end-stage renal disease, and SPI-205, chemotherapy induced neuropathy, are both in development.

Right now, one drug, Fusilev, seems to be driving sales up, so investors are fearful that when the generic drug leucovorin enters the market sales will drop.

However, SeekingAlpha’s Scott Matusow is confident in Spectrum’s management, and top-notch management can mean the difference between a small cap company fizzling and succeeding. Spectrum already has the pipeline in place, so Matusow believes that Spectrum’s strong management can only help the company.

The information contained in this article should not be construed as investment advice or as a solicitation to buy or sell any stock.

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