By Colin Kellaher

 

Shares of Spectrum Pharmaceuticals Inc. slid more than 20% in premarket trading after the biopharmaceutical company said it had lined up $65 million in financing following a setback for its proposed treatment for nonsmall cell lung cancer.

The Henderson, Nev., company said it entered into a five-year debt financing agreement with investment affiliates managed by SLR Capital Partners LLC that extends its cash runway through 2024.

Spectrum unveiled the new financing the day after a U.S. Food and Drug Administration advisory committee voted 9-4 that the benefits of poziotinib for patients with certain types of nonsmall cell lung cancer didn't outweigh its risks.

The FDA, which has set a target action date of Nov. 24 for poziotinib, isn't bound to follow the advice of its advisory panels, though it usually does. Spectrum said it plans to carefully evaluate its options for the poziotinib program ahead of the target action date.

Spectrum--which earlier this month won FDA approval for its Rolvedon injection used to reduce the incidence of infection related to chemotherapy--said the funding from SLR, coupled with its cash on hand, provides sufficient capital to optimize the commercial launch of Rolvedon and to fund its operations through 2024.

Spectrum shares, which closed Thursday at about 63.5 cents, were recently changing hands at 50 cents, down 21%, in premarket trading.

 

Write to Colin Kellaher at colin.kellaher@wsj.com

 

(END) Dow Jones Newswires

September 23, 2022 08:20 ET (12:20 GMT)

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