- ROLONTIS™ (eflapegrastim) pivotal
program is on track for Spectrum to file BLA next year.
- Poziotinib study in non-small cell lung
cancer patients with EGFR Exon 20 insertion mutations, being run in
partnership with The University of Texas MD Anderson Cancer Center,
is expected to yield results before year end.
- Qapzola™ (apaziquone) receives a new
Special Protocol Assessment (SPA) from the FDA that significantly
reduces the number of patients required for NDA filing.
- Q4 revenues were $35.2 million,
including $32.2 million in product sales.
Spectrum Pharmaceuticals, Inc. (NasdaqGS: SPPI), a biotechnology
company with fully integrated commercial and drug development
operations with a primary focus in Hematology and Oncology,
announced today financial results for the three-month period and
year ended December 31, 2016.
"We made significant advancements in our pipeline throughout
2016 and I believe we are well positioned for transformational
growth,” said Rajesh C. Shrotriya, MD, Chairman and Chief
Executive Officer of Spectrum Pharmaceuticals. “ROLONTIS is
our highest priority drug and we are pleased that we remain on
track for a BLA filing next year. Poziotinib, which is being
developed for breast cancer has recently emerged as a potential
treatment for a high unmet medical need in lung cancer. Data
presented in December suggests that poziotinib has potential in
lung cancer patients with certain genetic mutations that have poor
prognosis and limited treatment options. An investigator sponsored
trial of poziotinib in such patients with EGFR Exon 20 insertion
mutations at MD Anderson Cancer Center could yield key results
before year end. We have also obtained a new SPA for our late-stage
bladder cancer drug Qapzola that significantly reduces the number
of patients required for an NDA filing. Spectrum is in a unique
position of having multiple opportunities to create value while
benefiting patients.”
Pipeline Update:
- ROLONTIS (eflapegrastim), a
novel long-acting GCSF: A pivotal Phase 3 study was initiated
under a SPA from the FDA in 2016 to evaluate ROLONTIS in the
management of chemotherapy-induced neutropenia in patients with
breast cancer. The Company is actively enrolling breast cancer
patients in the current trial, expects to initiate an additional
smaller Phase 3 trial, and continues to expect to file a BLA next
year.
- Poziotinib, a potential
best-in-class, novel, pan-HER inhibitor: In collaboration with
The University of Texas MD Anderson Cancer Center, an investigator
sponsored trial is being initiated in non-small cell lung cancer
patients with EGFR Exon 20 insertion mutations. The study is
expected to yield results before year end. Spectrum is also
conducting a Phase 2 breast cancer trial in the U.S., based on
promising Phase 1 efficacy data in breast cancer patients who had
failed multiple other HER2-directed therapies. Further, multiple
Phase 2 studies are being conducted in South Korea by Hanmi
Pharmaceuticals and National OncoVenture to study additional cancer
indications.
- Qapzola, a potent tumor-activated
drug being investigated for non-muscle invasive bladder cancer:
The Company received a new SPA from the FDA on a proposed Phase 3
study design. The Phase 3 study has been specifically designed to
build on learnings from the previous studies, as well as
recommendations from the FDA. Compared to the previous study,
this study will use twice the dosage of Qapzola (8 mg), will
evaluate approximately 70% fewer patients (n = 425), and will
evaluate time-to-recurrence as the primary endpoint compared to
recurrence at 2 years.
Three-Month Period Ended
December 31, 2016 (All numbers are approximate)
GAAP Results
Total product sales were $32.2 million in the fourth quarter of
2016. Product sales in the fourth quarter included: FUSILEV®
(levoleucovorin) net sales of $4.3 million, FOLOTYN® (pralatrexate
injection) net sales of $10.7 million, ZEVALIN® (ibritumomab
tiuxetan) net sales of $2.5 million, MARQIBO® (vinCRIStine sulfate
LIPOSOME injection) net sales of $2.3 million, BELEODAQ®
(belinostat for injection) net sales of $3.0 million, and EVOMELA®
(melphalan) for injection net sales of $9.4 million.
Spectrum recorded net loss of $17.4 million, or $0.22 per basic
and diluted share in the three-month period ended December 31,
2016, compared to net loss of $4.2 million, or $0.06 per basic and
diluted share in the comparable period in 2015. Total research and
development expenses were $15.9 million in the quarter, as compared
to $15.4 million in the same period in 2015. Selling, general and
administrative expenses were $18.3 million in the quarter, compared
to $21.2 million in the same period in 2015.
During the quarter the Company purchased $10.0 million face
value of its convertible debentures for $9.0 million. The Company
ended the quarter with cash and cash equivalents of $158
million.
Non-GAAP Results
Spectrum recorded non-GAAP net loss of $8.1 million, or $0.10
per basic and diluted share in the three-month period ended
December 31, 2016, compared to non-GAAP net loss of $4.6
million, or $0.07 per basic and diluted share in the comparable
period in 2015. Non-GAAP research and development expenses were
$15.4 million, as compared to $14.8 million in the same period of
2015. Non-GAAP selling, general and administrative expenses were
$15.6 million, as compared to $18.1 million in the same period in
2015.
Twelve-Month Period Ended
December 31, 2016 (All numbers are approximate)
GAAP Results
Total product sales were $128.6 million for the twelve months
ended December 31, 2016. Total product sales decreased 6% from
$136.9 million in the same period of 2015.
Product sales in 2016 included: FUSILEV® (levoleucovorin) net
sales of $34.8 million, FOLOTYN® (pralatrexate injection) net sales
of $46.2 million, ZEVALIN® (ibritumomab tiuxetan) net sales of
$10.7 million, MARQIBO® (vinCRIStine sulfate LIPOSOME injection)
net sales of $7.2 million, BELEODAQ® (belinostat) for injection net
sales of $13.4 million, and EVOMELA® (melphalan) for injection net
sales of $16.2 million.
Spectrum recorded net loss of $68.5 million, or $0.94 per basic
and diluted share in the twelve-month period ended
December 31, 2016, compared to net loss of $50.8 million, or
$0.78 per basic and diluted share in the comparable period in 2015.
Total research and development expenses were $58.9 million for the
year, as compared to $50.8 million in the same period in 2015.
Selling, general and administrative expenses were $87.3 million for
the year, compared to $86.5 million in the same period in 2015.
Non-GAAP Results
Spectrum recorded non-GAAP net loss of $16.8 million, or $0.23
per basic and diluted share in the twelve-month period ended
December 31, 2016, compared to non-GAAP net loss of $17.6
million, or $0.27 per basic and diluted share in the comparable
period in 2015. Non-GAAP research and development expenses were
$54.1 million, as compared to $45.7 million in the same period of
2015. Non-GAAP selling, general and administrative expenses were
$64.1 million, as compared to $77.9 million in the same period in
2015.
Conference Call
Wednesday, March 8, 2017 @ 4:30 p.m.
Eastern/1:30 p.m. Pacific
Domestic: (877) 837-3910,
Conference ID# 67373281 International: (973) 796-5077, Conference
ID# 67373281
This conference call will also be webcast. Listeners may access
the webcast, which will be available on the investor relations page
of Spectrum Pharmaceuticals' website: www.sppirx.com on March 8,
2017 at 4:30 p.m. Eastern/1:30
p.m. Pacific.
About Spectrum Pharmaceuticals, Inc.
Spectrum Pharmaceuticals is a leading biotechnology company
focused on acquiring, developing, and commercializing drug
products, with a primary focus in Hematology and Oncology. Spectrum
currently markets six hematology/oncology drugs, and has an
advanced stage pipeline that has the potential to transform
the Company. Spectrum's strong track record for in-licensing and
acquiring differentiated drugs, and expertise in clinical
development have generated a robust, diversified, and growing
pipeline of product candidates in advanced-stage Phase 2 and Phase
3 studies. More information on Spectrum is available
at www.sppirx.com.
Forward-looking statement - This press release may contain
forward-looking statements regarding future events and the future
performance of Spectrum Pharmaceuticals that involve risks and
uncertainties that could cause actual results to differ materially.
These statements are based on management's current beliefs and
expectations. These statements include, but are not limited to,
statements that relate to Spectrum’s business and its future,
including certain company milestones, Spectrum's ability to
identify, acquire, develop and commercialize a broad and diverse
pipeline of late-stage clinical and commercial products, the timing
and results of FDA decisions, and any statements that relate to the
intent, belief, plans or expectations of Spectrum or its
management, or that are not a statement of historical fact. Risks
that could cause actual results to differ include the possibility
that Spectrum’s existing and new drug candidates may not prove safe
or effective, the possibility that our existing and new
applications to the FDA and other regulatory agencies may not
receive approval in a timely manner or at all, the possibility that
our existing and new drug candidates, if approved, may not be more
effective, safer or more cost efficient than competing drugs, the
possibility that our efforts to acquire or in-license and develop
additional drug candidates may fail, our dependence on third
parties for clinical trials, manufacturing, distribution and
quality control and other risks that are described in further
detail in the Company's reports filed with the Securities and
Exchange Commission. The Company does not plan to update any such
forward-looking statements and expressly disclaims any duty to
update the information contained in this press release except as
required by law.
SPECTRUM PHARMACEUTICALS, INC. ®, FUSILEV®, FOLOTYN®, ZEVALIN®,
MARQIBO®, BELEODAQ®, and EVOMELA® are registered trademarks of
Spectrum Pharmaceuticals, Inc. and its affiliates. REDEFINING
CANCER CARE™, ROLONTIS™, Qapzola™ and the Spectrum Pharmaceuticals'
logos are trademarks owned by Spectrum Pharmaceuticals, Inc. Any
other trademarks are the property of their respective owners.
© 2017 Spectrum Pharmaceuticals, Inc. All Rights Reserved
SPECTRUM PHARMACEUTICALS, INC. Condensed
Consolidated Statements of Operations
(In thousands, except per share
amounts)
(Unaudited)
Three Months Ended December 31,
Twelve Months Ended December
31,
2016 2015 2016 2015
Revenues: Product sales, net $ 32,195 $ 34,837 $ 128,596 $ 136,851
License fees and service revenue 3,041 15,494 17,848
25,705 Total revenues $ 35,236 $ 50,331
$ 146,444 $ 162,556 Operating costs and expenses:
Cost of product sales (excludes amortization and impairment charges
of intangible assets) 9,238 6,181 27,953 27,689 Cost of service
revenue 2,174 — 7,890 — Selling, general and administrative 18,300
21,218 87,347 86,514 Research and development 15,899 15,433 58,936
50,766 Amortization and impairment charges of intangible assets
6,894 10,462 25,946 38,319 Total
operating costs and expenses 52,505 53,294 208,072
203,288 Loss from operations (17,269 ) (2,963 )
(61,628 ) (40,732 ) Other (expense) income: Interest expense, net
(2,348 ) (2,314 ) (9,435 ) (9,074 ) Change in fair value of
contingent consideration related to acquisitions 600 1,241 (649 )
676 Other (expense) income, net (102 ) 251 887 (1,249
) Total other expenses (1,850 ) (822 ) (9,197 ) (9,647 ) Loss
before income taxes (19,119 ) (3,785 ) (70,825 ) (50,379 ) Benefit
(provision) for income taxes 1,677 (369 ) 2,313 (406
) Net loss $ (17,442 ) $ (4,154 ) $ (68,512 ) $ (50,785 ) Net loss
per share: Basic and diluted $ (0.22 ) $ (0.06 ) $ (0.94 ) $ (0.78
) Weighted average shares outstanding: Basic and diluted 78,401,381
65,370,371 72,824,070 64,882,417
SPECTRUM
PHARMACEUTICALS, INC. Condensed Consolidated Balance
Sheets
(In thousands, expect per share and par
value amounts)
(Unaudited)
December 31, 2016 December 31,
2015 ASSETS Current assets: Cash and cash equivalents
$ 158,222 $ 139,741 Marketable securities 247 245 Accounts
receivable, net of allowance for doubtful accounts of $88 and $120,
respectively 39,782 30,384 Other receivables 5,754 12,572
Inventories 8,715 4,176 Prepaid expenses and other assets 3,930
3,507 Total current assets 216,650 190,625 Property
and equipment, net of accumulated depreciation 449 918 Intangible
assets, net of accumulated amortization and impairment charges
164,234 190,335 Goodwill 17,886 17,960 Other assets 29,549
19,211 Total assets $ 428,768 $ 419,049
LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities:
Accounts payable and other accrued liabilities $ 52,483 $ 56,539
Accrued payroll and benefits 8,981 8,188 Deferred revenue 3,188
6,130 Drug development liability 861 259 Acquisition-related
contingent obligations — 5,227 Total current
liabilities 65,513 76,343 Drug development liability, less current
portion 12,269 14,427 Deferred revenue, less current portion 323
383 Acquisition-related contingent obligations, less current
portion 1,315 1,439 Deferred tax liability 6,675 6,779 Other
long-term liabilities 9,604 7,444 Convertible senior notes 97,043
99,377 Total liabilities 192,742 206,192 Commitments
and contingencies Stockholders’ equity: Preferred stock, $0.001 par
value; 5,000,000 shares authorized — — Series B Junior
Participating Preferred Stock, $0.001 par value; 1,500,000 shares
authorized; no shares issued and outstanding — — Series E
Convertible Voting Preferred Stock, $0.001 par value and $10,000
stated value; 2,000 shares authorized; 0 and 20 shares issued and
outstanding at December 31, 2016 and 2015, respectively (the
presented 2015 balance relates to 20 shares of preferred stock
which were converted into 40,000 shares of common stock in 2016) —
123 Common stock, $0.001 par value; 175,000,000 shares authorized;
80,466,735 and 68,228,935 issued and outstanding at December 31,
2016 and 2015, respectively 80 68 Additional paid-in capital
640,166 552,108 Accumulated other comprehensive loss (1,579 )
(5,319 ) Accumulated deficit (402,641 ) (334,123 ) Total
stockholders’ equity 236,026 212,857 Total
liabilities and stockholders’ equity $ 428,768 $ 419,049
Non-GAAP Financial Measures
In this press release, Spectrum reports certain historical
“non-GAAP financial measures,” as defined in Regulation G of the
Securities Exchange Act of 1934. Non-GAAP financial measures differ
from financial statements reported in conformity to U.S. generally
accepted accounting principles (“GAAP”). In accordance with
Regulation G, we reconciled each non-GAAP financial measure to its
most directly comparable GAAP measure. Management uses non-GAAP
financial measures to assess our company’s performance and allocate
company resources, and believes that providing these non-GAAP
financial measures allows investors to view the Company’s financial
results in the way that management views the financial results. We
believe non-GAAP disclosures also provide investors with
information used generally in our industry for evaluating operating
results. Investors should not place undue reliance on non-GAAP
financial measures, nor should investors consider non-GAAP
financial measures as more meaningful than, or as substitutes or
replacements for, financial measures prepared in accordance with
GAAP.
The non-GAAP financial measures presented exclude the items
summarized in the below table. Management believes that adjustments
for these items assist investors in making comparisons of
period-to-period operating results and that these items are not
indicative of the Company’s on-going core operating
performance.
The non-GAAP financial measures presented herein have certain
limitations in that they do not reflect all of the costs associated
with the operations of the Company’s business as reported under
GAAP. Therefore, investors should consider non-GAAP financial
measures in addition to, and not as a substitute for, or as
superior to, measures of financial performance prepared in
accordance with GAAP. The non-GAAP financial measures presented by
the Company may be different from the non-GAAP financial measures
used by other companies.
SPECTRUM PHARMACEUTICALS, INC. Reconciliation of
Non-GAAP Adjustments for Condensed Consolidated Statements of
Operations
(In thousands, expect per share
amounts)
Three Months Ended December 31,
Twelve Months Ended December
31,
2016 2015 2016 2015
(1) GAAP product sales, net & license fees and
service revenue $ 35,236 $ 50,331
$ 146,444 $ 162,556 Non-GAAP
adjustments to product sales, net & license fees and service
revenue: — (15,000 ) (6,000 ) (24,681 )
Non-GAAP product
sales, net & license fees and service revenue $
35,236 $ 35,331 $
140,444 $ 137,875 (2)
GAAP selling, general and administrative expenses $
18,300 $ 21,218 $ 87,347
$ 86,514 Non-GAAP adjustments to SG&A:
Stock-based compensation (2,201 ) (2,928 ) (10,410 ) (10,049 )
Litigation expenses (387 ) (15 ) (12,333 ) (7 ) Insurance
reimbursement under D&O policy — — — 2,111 Depreciation expense
(103 ) (170 ) (535 ) (691 )
Non-GAAP selling, general and
administrative $ 15,609 $
18,105 $ 64,069 $
77,878 (3) GAAP research and
development $ 15,899 $ 15,433
$ 58,936 $ 50,766 Non-GAAP adjustments
to R&D: Stock-based compensation (457 ) (666 ) (2,002 ) (2,035
) Depreciation expense (3 ) (3 ) (11 ) (18 ) Other R&D
milestone payments — — (2,826 ) (3,000 )
Non-GAAP
research and development $ 15,439 $
14,764 $ 54,097 $
45,713 (4) GAAP net loss $
(17,442 ) $ (4,154 ) $
(68,512 ) $ (50,785 ) Non-GAAP
adjustments to net loss: Adjustments to product sales, net &
license fees and service revenue, SG&A, and R&D as noted
above 3,151 (11,218 ) 22,117 (10,992 ) Amortization and impairment
charges of intangible assets 6,894 10,462 25,946 38,319 Adjustments
to other (expense) income 959 (46 ) 6,011 5,463 Adjustments to
benefit (provision) for income taxes (1,677 ) 369 (2,313 )
406
Non-GAAP net loss $ (8,115 )
$ (4,587 ) $ (16,751 )
$ (17,589 ) (5) GAAP loss per share
(Basic and Diluted) $ (0.22 ) $ (0.06 ) $ (0.94 ) $ (0.78 )
Non-GAAP loss per share (Basic and Diluted) $ (0.10 ) $
(0.07 ) $ (0.23 ) $ (0.27 )
Weighted average shares
outstanding: Basic and Diluted 78,401,381 65,370,371 72,824,070
64,882,417
(1) Non-GAAP product sales, net &
license fees and service revenue: These amounts reflect
adjustments to reverse revenue recognition for upfront revenue from
out-licenses and revenue from milestone achievement(s) that do not
consistently recur. The resulting non-GAAP revenue solely consists
of our (i) product sales, (ii) percentage-based royalties from our
licensees’ sales, and (iii) on-going service revenue. We believe
this measure of non-GAAP revenue is more indicative of the
period-over-period success of our core ongoing product sales and
service revenue.
(2) Non-GAAP selling, general and
administrative: These amounts reflect adjustments to
reverse allocated operating expenses for certain non-cash items
(including stock-based compensation and depreciation), as well as
the reversal of irregular operating expense items such as
non-recurring legal fees and settlements. We believe the resulting
non-GAAP SG&A value is more indicative of the
period-over-period success of our administrative expense control,
and more reflective of our normalized SG&A expense trends.
(3) Non-GAAP research and
development: These amounts reflect adjustments to
reverse allocated operating expenses for certain non-cash items
(including stock-based compensation and depreciation), as well as
non-recurring R&D milestone achievements that we record to
expense for our in-licenses. We believe the resulting non-GAAP
R&D value is more reflective of our true R&D expense
trends.
(4) Non-GAAP net loss: These
amounts reflect all non-GAAP adjustments described in (1) through
(3) above, plus other non-cash and/or non-recurring items,
including: (i) adjustments to reverse cost of service expense
recognition for certain service arrangements that do not
consistently recur (which corresponds with our non-GAAP reversal of
license and contract revenue, as discussed in (1) above); (ii)
adjustments to reverse operating expenses for non-cash amortization
and impairment of intangible assets (the reversal of these non-cash
expenses allows for a clearer representation of the
period-over-period success of our overall financial results and
future working capital requirements); (iii) adjustments to reverse
the impact of income taxes; and (iv) adjustments to reverse the
impact of mark-to-market contingent consideration (although our
contingent consideration results from prior acquisitions and is a
part of our business strategy, these adjustments through earnings
typically result from variables other than our current commercial
activity or other operating performance measures that are a focus
of our management), (v) reversal of foreign exchange gains and
losses (non-cash), and (vi) debt discount accretion expense
(non-cash) for our convertible notes.
(5) Non-GAAP loss per share:
These amounts reflect all non-GAAP adjustments in (1) through (4)
above to present our overall non-GAAP financial results for each
period on a per-share basis.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170308006331/en/
Spectrum Pharmaceuticals, Inc.Shiv KapoorVice President,
Strategic Planning & Investor Relations702-835-6300InvestorRelations@sppirx.com
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