Spectrum Pharmaceuticals, Inc. (SPPI – Free Report) incurred a loss of 16 cents per share in the first quarter of 2018, narrower than the Zacks Consensus Estimate of a loss of 24 cents and the year-ago quarter loss of 30 cents per share. However, adjusted loss came in at 15 cents, wider-than the year ago loss of 14 cents.
Quarterly revenues came in at $30.5 million, up 4.8% from the year-ago quarter. The top line also beat the Zacks Consensus Estimate of $26.1 million.
Spectrum Pharma's shares have underperformed the industry so far this year. The stock has lost 16.5% against the industry's decline of 5%.
Quarter in Detail
Total product sales came in at $28.1 million, down 8.8% year over year. Sales were generated by six marketed products — Fusilev ($0.6 million), Folotyn ($12.7 million), Zevalin ($3 million), Marqibo ($0.9 million), Beleodaq ($2.7 million) and Evomela ($8.1 million). Evomela is facing pricing pressure due to generic entry.
License fees and service revenues were $2.4 million, down 26.8% from the prior-year quarter.
Adjusted research & development expenses were $17.1 million, up 15.7% from the year-ago quarter. Adjusted selling, general and administrative spending was up 30.1% to $20.4 million due to higher legal fees related to the termination of its former chief executive officer. The company is focused on the development of its two pipeline candidates, poziotinib and Rolontis.
2018 Outlook Raised
The company increased its revenue guidance for 2018 to the range of $95-$115 million (previously $90-$110 million). The company expects to have enough liquid funds to continue its operations into 2020.
Pipeline Update
Spectrum Pharma is evaluating poziotinib in two separate phase II studies for the treatment of lung cancer and a phase II study for breast cancer. In April 2018, the company published results from an analysis of the first 11 patients from the lung cancer study being conducted with MD Anderson. The candidate achieved an objective response rate of 64% in patients with EGFR exon 20 insertion mutations. The company is planning to evaluate poziotinib in several solid tumors with exon 20 mutations.
