Spectrum Pharmaceuticals: Rumors of Buyout Talks Persist 24 comments
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An unconfirmed rumor about a possible Spectrum Pharmaceuticals (SPPI) buyout was reported by TheFlyontheWall during Friday's session. This rumor also supports the ongoing speculation that SPPI could be acquired by a larger specialty drug maker following two drug reviews scheduled this fall.
- September 7: Zevalin
- October 8: Fusilev
After a brief pullback last week, shares of SPPI are likely to continue their advance heading into the coming week:
TIMELINE
TIMELINE
I first reported that Bayer Schering (BYERF.PK) could make an offer to acquire SPPI.
Reni J. Benjamin, Rodman and Renshaw biotech analyst, told Jonathan Moreland of RealMoney, “Company's like Bayer or Bristol-Myers (BMY) may also look at the company more seriously if they are able to successfully market Zevalin.”
I reported SPPI rose 7.16% on speculation that it may be targeted for acquisition.
Adam Feuerstein of TheStreet.com (TSCM) reported he was skeptical about an SPPI buyout.
SPPI announced that it acquired 100% of the rights to RenaZorb® which is currently being studied in trials for hyperphosphatemia in patients with chronic kidney disease.
SPPI is scheduled to report Q2 earnings via webcast on August 13, 2009 at 12:00 PM ET. Interested investors can access the webcast here.
CONCLUSION
SPPI’s move to acquire all rights to RenaZorb® indicates to me that Allergan (AGN), who has been working to establish its urological drug division, may now be interested in bidding on SPPI.
While this is merely speculation on my part, the possibilities certainly appear to be growing, rather than shrinking, along with SPPI’s share price.
Keep your eye on SPPI.
Disclosure: Long SPPI
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Thank you!
Justin
Without getting too specific, I can tell you that I own both shares and calls as well as some puts, which serve as a hedge.
Justin
opinion on CPD and recent price movement?
Justin - I have read your reviews of SPPI (thank you) and have done some of my own digging. My hope is that before approval it will reach $8 as it did last month. After approval maybe $10...
Good Luck LONGS
Did you also happen to read the articles at the hyperlinks?
With regard to CPD, it's not on my radar.
I do not base my buying decisions on a specific price range. It is highly unlikely that I will cover any penny stocks. I bought my first and only penny stock in late January of this year - CTIC at $0.07.
Based on your investment criteria, I encourage you to look to others for help. It is highly unlikely that I will be able to help you.
Good luck.
Justin
Just took a small stake in ARIA. Getting a little nervous on the recent downtrend. What do you think.
Thank you for the feedback and thank you for reading my articles.
While I agree with your sentiment, I think your price target may be a bit conservative. With that said, maintaining conservative expectations on the right opportunities is not usually a bad thing!
Please keep in touch! Good luck!
Justin
On Aug 11 04:02 PM MyOpenSky wrote:
Justin - I have read your reviews of SPPI (thank you) and have done some of my own digging. My hope is that before approval it will reach $8 as it did last month. After approval maybe $10...
While I cannot give you specific advice on when to buy or sell, I will tell you that I continue to like ARIA and plan to add to my existing positions in the coming days and weeks.
I hope this helps!
Justin
On Aug 11 05:43 PM Buddaus wrote:
Just took a small stake in ARIA. Getting a little nervous on the recent downtrend. What do you think.
Ps. little upward movement is SPPI after hours.....
With regard to ARIA, I am focused on the medicine. With a good drug, the fundamentals and share price will improve.
You might consider hedging your shares with a few put options. By hedging positions, one can sleep well each and every night!
Justin
Also, I am not sure if you have said anything in your other writings about NEPH.... I have bought in the low 1's it has been trading up over the past few days in what I think is anticipation of FDA approval. What are you thoughts on this stock - if you have written anything in the past please provide the link.
Thanks for the feedback!
Long and hoping for a good result from the fda.
As I am working on a number of things, if time permits, I will cover the call, which I thought was outstanding!
I remain focused on the long-term. This recent pullback was healthy and expected.
Keep in touch and best of luck to you!
Justin
I just noticed your comment. Sorry for not responding earlier.
Regarding NEPH, I am vaguely familiar with the company. For this reason, I cannot provide you with a qualified response. The guy who knows NEPH best is Mike Harvilla.
The best way to reach Mike, visit BioMedReports.com and drop him an email. Mike is a heck of a nice guy, and he will provide you with a much better take on NEPH than I would.
Regarding SPPI, today's pullback offered a good buying opportunity!
Best of luck to you!
Justin
Off Topic: Are you from Montana or a nearby state?
I got it early and my wife's account is filled with it. SPPI is going to be around for a while.
Slink
Watching for a $9.50 super high volume price before this Friday.
Good luck to all!