Analysts’ Recommendations for Spectrum Pharmaceuticals




Spectrum Pharmaceuticals (SPPI) is a biotechnology company that develops and commercializes oncology and hematology drug products. The company has six commercialized products—Fusilev, Folotyn, Zevalin, Marqibo, Beleodaq, and Evomela. These drugs target several types of cancers such as non-Hodgkin’s lymphoma, colorectal cancer, and multiple myeloma.

The company also has three drugs in the development stage—Rolontis for chemotherapy-induced neutropenia, Qapzola for non-muscle invasive bladder cancer, and Poziotinib, a novel pan-HER inhibitor for solid tumors such as breast cancer and lung cancer.

Spectrum Pharmaceuticals (SPPI) generates more than 90.0% of its total revenues from the US market, and the remaining revenues are generated from Europe. In 3Q17, the company earned ~93.0% of total revenues from the US, while 7.0% was earned from Europe.

Of the six commercialized drugs, Folotyn, Evomela, and Beleodaq contribute almost 80.0% of the company’s total revenues. In 3Q17, these three drugs contributed 37.0%, 34.0%, and 11.0% of the total revenues, respectively.

Analysts’ ratings for Spectrum Pharmaceuticals

Of the three analysts covering Spectrum Pharmaceuticals in November 2017, two analysts gave the stock a “strong buy” rating, and one analyst gave the stock a “buy” rating. The mean rating for the stock is ~1.3 with a mean target price of $28.67.

Spectrum Pharmaceuticals makes up ~0.22% of the iShares Core S&P Small-Cap ETF’s (IJR) total portfolio holdings.

Peers’ ratings

Of the 26 analysts covering Amgen (AMGN) stock in November 2017, 11 analysts recommended a “buy” or higher rating, and 15 analysts gave it a “hold” rating. 

For Beyond Spring (BYSI) both analysts covering the stock in November 2017 gave it a “buy” rating. Of the nine analysts covering Puma Biotech (PBYI) in November 2017, eight gave the stock a “buy” or higher rating.

In the next part of this series, we’ll look at the company’s recent product acquisitions.

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