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Justin M. Hall is an entrepreneur, investor and author. Hall serves as owner and founder of HiRx, LLC located in Indianapolis, Indiana. He is the author of "The Option Investors Desk Reference©" (2008). Hall invests in areas of innovative growth, such as (1) late-stage drug, device... More
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  • Spectrum Pharmaceuticals: Rumor of Buyout Talks, Speculation Persists 0 comments
    Aug 9, 2009 06:19 PM | about stocks: SPPI, BYERF.PK, BMY, AGN, TSCM
    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
     
    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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    Themes: Biotech, Mergers Acquisitions Stocks: SPPI, BYERF.PK, BMY, AGN, TSCM
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  1. Update: 10.9.09 (46 Comments)
  2. FULL DISCLOSURE STATEMENT (18 Comments)
  3. Spectrum Pharmaceuticals: Undervalued and [now] Oversold (17 Comments)
  4. Spectrum Pharmaceuticals: $50 Million Vote of Confidence or Cause for Concern (15 Comments)
  5. A NECESSARY COMPROMISE (14 Comments)
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