- ROLONTIS™ (eflapegrastim):
- BLA filing expected next
year.
- Enrollment completed in
registrational ADVANCE Study under a Special Protocol Assessment
(SPA) with the FDA. Topline results expected in Q1
2018.
- A second smaller study RECOVER is
enrolling patients in EU and U.S. Enrollment completion expected in
Q1 2018.
- Poziotinib:
- Interim results are expected before
year end from an ongoing Phase 2 study in non-small cell lung
cancer patients with exon 20 insertion mutations in EGFR or HER2.
This study is being conducted at The University of Texas MD
Anderson Cancer Center.
- Following discussions with the FDA,
the Company is initiating an additional multicenter clinical trial
to expedite the development of poziotinib in this patient
population.
- Financials:
- Q2 revenues were $34.3 million,
including $31.2 million in product sales.
- FOLOTYN® (pralatrexate injection)
was recently approved in Japan and the Company expects multiple
related milestone payments totaling approximately $5 million
from Mundipharma in the second half of the year.
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 ended
June 30, 2017.
"During the second quarter we made significant progress in our
highest priority clinical programs and achieved solid performance
across our commercial business,” said Rajesh C. Shrotriya, MD,
Chairman and Chief Executive Officer of Spectrum
Pharmaceuticals. “We completed enrollment in ROLONTIS’s ADVANCE
registrational Phase 3 study ahead of schedule and enrollment in a
second international study RECOVER is well under way in Europe and
U.S. We are also very excited about the prospects of poziotinib in
cancer patients with exon 20 insertion mutations and expect interim
results from the Phase 2 lung cancer study before the end of the
year. We are driven to bring our novel drugs to patients with unmet
medical needs and look forward to multiple near-term development
catalysts that could shape the Company’s future.”
Pipeline Update:
- ROLONTIS (eflapegrastim), a
novel long-acting GCSF: A registrational Phase 3 study ADVANCE
was initiated under an SPA with the FDA last year to evaluate
ROLONTIS in the management of chemotherapy-induced neutropenia. The
Company has completed enrollment in the ADVANCE study with 405
patients randomized and expects to report topline data in Q1 2018.
To strengthen the regulatory package in the Europe and U.S., the
Company is currently enrolling the 218-patient international
RECOVER study. The Company continues to expect to file the BLA next
year.
- Poziotinib, a potential
best-in-class, novel, pan-HER inhibitor: An investigator
sponsored trial is currently enrolling at the University of Texas
MD Anderson Cancer Center in non-small cell lung cancer patients
with exon 20 insertion mutations in EGFR or HER2. The study is
expected to yield interim results before year end. Following
discussions with the FDA, the Company is initiating an additional
multicenter study in a similar patient population. Spectrum is also
conducting a Phase 2 breast cancer study in the third-line setting
in the U.S., based on promising Phase 1 study efficacy data in
breast cancer patients who had failed multiple HER2-directed
therapies. The Company is in discussions with the FDA about a
combination trial of poziotinib and standard of care therapy in
HER2+ breast cancer patients in the second-line setting.
- QAPZOLA™, a potent tumor-activated
drug for bladder cancer is being investigated for low and
intermediate risk non-muscle invasive bladder cancer: The
Company has an SPA from the FDA for a new Phase 3 study
incorporating learnings from the previous studies, as well as
recommendations from the FDA. Compared to the previous
program, this new Phase 3 study will include fewer evaluable
patients (n=425 versus 1,557 patients), use a higher dosage of
QAPZOLA (8 mg versus 4 mg), and will evaluate time-to-recurrence as
the primary endpoint. Approximately 50 sites have been selected
thus far for enrolling patients in the Phase 3 study and patients
are currently being screened.
Three-Month Period Ended June 30,
2017 (All numbers are approximate)
GAAP Results
Total product sales were $31.2 million in the second quarter of
2017. Product sales in the second quarter included: FUSILEV®
(levoleucovorin) net sales of $2.1 million, FOLOTYN® (pralatrexate
injection) net sales of $11.2 million, ZEVALIN® (ibritumomab
tiuxetan) net sales of $2.3 million, MARQIBO® (vinCRIStine sulfate
LIPOSOME injection) net sales of $2.2 million, BELEODAQ®
(belinostat) for injection net sales of $3.4 million, and EVOMELA®
(melphalan) for injection net sales of $10.1 million.
Spectrum recorded a net loss of $20.5 million, or $0.26 per
basic and diluted share in the three-month period ended
June 30, 2017, compared to a net loss of $24.3 million, or
$0.35 per basic and diluted share in the comparable period in 2016.
Total research and development expenses were $15.1 million in the
quarter, as compared to $14.3 million in the same period in 2016.
Selling, general and administrative expenses were $17.1 million in
the quarter, compared to $27.6 million in the same period in
2016.
Our June 30, 2017 cash and equivalents balance is $138.6
million. In July 2017, we sold and issued 3.2 million shares of our
common stock for net proceeds of $23.7 million under our ATM. These
shares and proceeds are not included in our June 30, 2017 financial
statements. We have now fully utilized the ATM facility.
Non-GAAP Results
Spectrum recorded non-GAAP net loss of $8.6 million, or $0.11
per basic and diluted share in the three-month period ended
June 30, 2017, compared to non-GAAP net loss of $3.7 million,
or $0.05 per basic share and diluted share in the comparable period
in 2016. Non-GAAP research and development expenses were $14.6
million, as compared to $12.9 million in the same period of 2016.
Non-GAAP selling, general and administrative expenses were $14.5
million, as compared to $16.1 million in the same period in
2016.
Conference Call
Thursday, August 3, 2017 @ 4:30
p.m. Eastern/1:30 p.m. Pacific
Domestic: (877) 837-3910, Conference ID#
44585743 International: (973) 796-5077, Conference ID# 44585743
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 August 3,
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 EndedJune 30, Six Months
EndedJune 30, 2017 2016 2017
2016 Revenues: Product sales, net $ 31,156 $ 30,887 $
57,001 $ 66,129 License fees and service revenue 3,145 3,062
6,401 11,686 Total revenues 34,301
33,949 63,402 77,815 Operating costs and
expenses: Cost of product sales (excludes amortization and
impairment charges of intangible assets) 11,303 5,609 19,439 11,212
Cost of service revenue 2,118 2,214 4,221 3,495 Selling, general
and administrative 17,107 27,620 35,715 49,583 Research and
development 15,097 14,281 29,792 29,744 Amortization and impairment
charges of intangible assets 6,901 6,306 13,790
12,145 Total operating costs and expenses 52,526
56,030 102,957 106,179 Loss from
operations (18,225 ) (22,081 ) (39,555 ) (28,364 ) Other (expense)
income: Interest expense, net (2,131 ) (2,375 ) (4,182 ) (4,714 )
Change in fair value of contingent consideration related to
acquisitions (97 ) (285 ) (294 ) (1,327 ) Other income, net 240
340 650 618 Total other expenses (1,988
) (2,320 ) (3,826 ) (5,423 ) Loss before income taxes (20,213 )
(24,401 ) (43,381 ) (33,787 ) (Provision) benefit for income taxes
(255 ) 106 (54 ) 171 Net loss $ (20,468 ) $ (24,295 )
$ (43,435 ) $ (33,616 ) Net loss per share: Basic and diluted $
(0.26 ) $ (0.35 ) $ (0.55 ) $ (0.50 ) Weighted average shares
outstanding: Basic and diluted 78,576,260 68,575,021
78,366,610 67,146,188
SPECTRUM
PHARMACEUTICALS, INC. Condensed Consolidated Balance
Sheets
(In thousands, expect per share and par
value amounts)
(Unaudited)
June 30, 2017 December 31, 2016
ASSETS Current assets: Cash and cash equivalents $ 138,313 $
158,222 Marketable securities 248 247 Accounts receivable, net of
allowance for doubtful accounts of $88, respectively 41,977 39,782
Other receivables 3,950 5,754 Inventories 10,157 8,715 Prepaid
expenses and other assets 4,369 3,930 Total current
assets 199,014 216,650 Property and equipment, net of accumulated
depreciation 517 449 Intangible assets, net of accumulated
amortization and impairment charges 150,815 164,234 Goodwill 18,057
17,886 Other assets 26,684 29,549 Total assets $
395,087 $ 428,768
LIABILITIES AND STOCKHOLDERS’
EQUITY Current liabilities: Accounts payable and other accrued
liabilities $ 55,617 $ 52,483 Accrued payroll and benefits 6,244
8,981 Deferred revenue 2,551 3,188 Drug development liability 153
861 Acquisition-related contingent obligations —
— Total current liabilities 64,565 65,513 Drug
development liability, less current portion 12,410 12,269 Deferred
revenue, less current portion 326 323 Acquisition-related
contingent obligations 1,609 1,315 Deferred tax liabilities 6,802
6,675 Other long-term liabilities 10,451 9,604 Convertible senior
notes 100,157 97,043 Total liabilities 196,320
192,742 Commitments and contingencies Stockholders’ equity:
Preferred stock, $0.001 par value; 5,000,000 shares authorized; no
shares issued and outstanding — — 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; no shares issued and outstanding. — — Common
stock, $0.001 par value; 175,000,000 shares authorized; 81,257,192
and 80,466,735 shares issued and outstanding at June 30, 2017 and
December 31, 2016, respectively 80 80 Additional paid-in capital
646,542 640,166 Accumulated other comprehensive loss (1,779 )
(1,579 ) Accumulated deficit (446,076 ) (402,641 ) Total
stockholders’ equity 198,767 236,026 Total
liabilities and stockholders’ equity $ 395,087 $ 428,768
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 EndedJune 30, Six Months
EndedJune 30, 2017 2016 2017
2016 (1) GAAP product sales, net &
license fees and service revenue $ 34,301
$ 33,949 $ 63,402 $
77,815 Non GAAP adjustments to product sales, net &
license fees and service revenue: — — — (6,000
)
Non-GAAP product sales, net & license fees and service
revenue $ 34,301 $ 33,949
$ 63,402 $ 71,815
(2) GAAP selling, general and administrative expenses
$ 17,107 $ 27,620 $
35,715 $ 49,583 Non GAAP adjustments to
SG&A: Stock-based compensation (2,574 ) (2,790 ) (5,316 )
(5,559 ) Litigation expenses — (8,518 ) — (10,813 ) Depreciation
expense (76 ) (164 ) (166 ) (329 )
Non-GAAP selling, general and
administrative $ 14,457 $
16,148 $ 30,233 $
32,882 (3) GAAP research and
development $ 15,097 $ 14,281
$ 29,792 $ 29,744 Non-GAAP adjustments
to R&D: Stock-based compensation (529 ) (637 ) (928 ) (1,045 )
Depreciation expense (2 ) (3 ) (5 ) (6 ) Other R&D milestone
payments — (770 ) — (2,826 )
Non-GAAP research and
development $ 14,566 $
12,871 $ 28,859 $
25,867 (4) GAAP net loss $
(20,468 ) $ (24,295 ) $
(43,435 ) $ (33,616 ) Non-GAAP
adjustments to net loss: Adjustments to product sales, net &
license fees and service revenue, SG&A, and R&D as noted
above 3,181 12,882
6,415
14,578 Amortization and impairment charges of intangible assets
6,901 6,306 13,790 12,145 Adjustments to other expense, net 1,525
1,495 3,098 3,694 Adjustments to provision (benefit) for income
taxes 255 (106 ) 54 (171 )
Non-GAAP net loss
$ (8,606 ) $ (3,718 )
$ (20,078 ) $ (3,370 )
(5) GAAP loss per share (Basic and Diluted) $ (0.26 )
$ (0.35 ) $ (0.55 ) $ (0.50 )
Non-GAAP loss per share (Basic and
Diluted) Basic and diluted $ (0.11 ) $ (0.05 ) $ (0.26 ) $
(0.05 )
Weighted average shares outstanding: Basic and
diluted 78,576,260 68,575,021 78,366,610 67,146,188
(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 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); (ii)
adjustments to reverse the impact of income taxes; and (iii)
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), (iv) reversal of
foreign exchange gains and losses (noncash), and (v) 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/20170803006257/en/
Spectrum Pharmaceuticals, Inc.Shiv KapoorVice President,
Strategic Planning & Investor Relations702-835-6300InvestorRelations@sppirx.com
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