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A Look at Spectrum Pharmaceuticals’ Recent Acquisitions

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Acquisitions

Spectrum Pharmaceuticals (SPPI) acquired Talon Therapeutics in July 2013 for $11.3 million in cash and an issuance of 3.0 million shares. With this acquisition, the company obtained the worldwide rights to Marqibo.

In March 2013, the company acquired the global development and commercialization rights for Melphalin from CyDex, a subsidiary of Ligand Pharmaceuticals (LGND). The company paid $3.0 million for this acquisition and must pay 20.0% of the net sales as royalties to Ligand Pharmaceuticals.

In March 2016, Spectrum Pharmaceuticals (SPPI) secured FDA approval for Melphalin. SPPI had been marketing the drug under the brand name Evomela. In 2012, the company acquired Allos Therapeutics for $205.0 million and secured the distribution rights for Folotyn.

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Out-license agreements

To focus on the China market, Spectrum Pharmaceuticals has out-licensed the distribution rights for Zevalin, Marqibo, and Evomela to CASI Pharmaceuticals (CASI).

In November 2015, the company out-licensed its commercialization rights of Zevalin to Mundipharma for $18.0 million.

In-license agreements

Spectrum Pharmaceuticals (SPPI) has entered into a number of in-licensing arrangements. Under these agreements, the company is responsible for the development and regulatory filing costs of these products. SPPI is required to make milestone and royalty payments on the sales of these products.

Zevalin agreements

Spectrum Pharmaceuticals acquired the rights to develop and commercialize Zevalin in the US from Cell Therapeutics (CTIC) in 2008. This agreement includes a possible milestone payment of $5.0 million to Corixa for sales of Zevalin in the US. Zevalin’s US sales also entail royalty payments to Genentech and Biogen (BIIB) from Spectrum Pharmaceuticals.

In October 2017, Kite Pharma (KITE) secured FDA approval for its treatment of Non-Hodgkin’s lymphoma. This treatment, with the brand name Yescarta, would compete with Zevalin.

Spectrum Pharmaceuticals comprises about 0.01% of the Vanguard Total Stock Market ETF’s (VTI) total portfolio holdings.

In the next part of this series, we’ll look at the company’s product-specific licensing agreements.

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