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Spectrum Pharmaceuticals: Financial Overview in December

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Revenue trends

In the first nine months of 2018, Spectrum Pharmaceuticals’ (SPPI) net revenues declined ~20% YoY (year-over-year) to $79.9 million from $99.8 million. During this period, the company’s net product sales were $76.4 million, which reflected an ~13% YoY decline. During the same period, the company’s revenues from license fees and services were $3.5 million, which reflected an ~70% YoY decline.

In the third quarter, Spectrum Pharmaceuticals’ net revenues declined ~21% to $25.3 million from $36.4 million. The company’s net product sales in the third quarter were $24.6 million, which reflected an ~21% YoY decline.

Spectrum Pharmaceuticals expects its net revenues in fiscal 2018 to be $100.0 million–$110.0 million. Wall Street analysts expect Spectrum Pharmaceuticals’ net revenues in fiscal 2018 to be ~$104.18 million, which represents an ~10.39% YoY decline.

Analysts also expect Spectrum Pharmaceuticals to report revenues of $25.6 million in the fourth quarter, which reflects an ~10.39% YoY decline.

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Peer comparison

In the first nine months of 2018, Spectrum Pharmaceuticals’ peers in the biopharmaceuticals market, ACADIA Pharmaceuticals (ACAD), Nektar Therapeutics (NKTR), and AMAG Pharmaceuticals (AMAG) generated revenues of $58.3 million, $27.76 million, and $122.2 million, respectively, which reflects an ~63.88% YoY growth, an ~81.85% YoY decline, and an ~20.49% YoY decline.

Expense trends

In the first nine months of 2018, Spectrum Pharmaceuticals’ net cost of sales (excluding amortization of intangible assets) declined ~37% YoY to $19.9 million from $31.6 million. During the same period, the company’s selling, general, and administrative and research and development expenses were $67.4 million and $61.4 million, respectively, which reflects ~22% and ~38% YoY growth.

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