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Follow @SmithOnStocks on Twitter for more updates (http://twitter.com/#SmithOnStocks Please read this section carefully for some important disclosures. Who Am I? My name is Larry Smith. My career was spent on Wall Street as a biotechnology and pharmaceuticals analyst and also as Director of... More
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  • Spectrum Pharmaceuticals: Fusilev Has Explosive Month In June 3 comments
    Jul 26, 2012 9:02 PM | about stocks: SPPI

    In my recent article Spectrum Pharmaceuticals: Bears Beware, Fusilev Strength Points To Strong Second Quarter, I wrote about the tug of war between bears and bulls on Spectrum Pharmaceuticals (NASDAQ:SPPI). There are several elements to the bear case that has resulted in a short position that amounts to 52% of the float. The centerpiece of the bear argument has been that Fusilev sales will erode sharply as generic leucovorin re-enters the market. However, generic leucovorin is now widely available and Fusilev just keeps on rolling.

    The latest Wolters Kluwer estimates of vial sales and dollar sales have just been published and Fusilev unit sales and sales volume doubled in June over May. This is shown below:

     Fusilev 50 mg units
        
     Vials Sales
    2012   
    January73,807 $14,761,400
    February98,050 $19,610,000
    March123,185 $24,637,000
    April113,316 $22,499,866
    May124,339 $24,867,800
    June248,587 $49,717,400

    Source: Wolters Kluwer

    I have not had a chance to analyze the possible reasons for the explosive June numbers and what they portend for the future. It is probably the case, although I don't know at the time of this writing, that Spectrum received an unusually large order from some account. I thought that it was important to get this information out quickly even though I have not yet had a chance to analyze the data. For more detail on the investment outlook for Spectrum, please refer to the recent report that I provided a link to in the first paragraph. When I have more information, I will get back.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Themes: long-ideas Stocks: SPPI
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Comments (3)
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  • craig thomas
    , contributor
    Comments (42) | Send Message
     
    market seemed to react to the report of increased Fusilev in June by opening around $17 on wednesday morning...but since it's back down to $15.35 ... any reason for this? maybe the report was innacurate?

     

    thanks
    27 Jul 2012, 04:44 PM Reply Like
  • Smith On Stocks
    , contributor
    Comments (989) | Send Message
     
    Author’s reply » I don't have an explanation for the stock price behavior other than to say that the market often does the opposite of what we think might happen. The numbers are accurate.
    27 Jul 2012, 05:29 PM Reply Like
  • mitrado
    , contributor
    Comments (2009) | Send Message
     
    According to yesterday's presentation, no, those numbers are not accurate. There were $57M Fusilev sales for the entire Q2, very different from this misleading report.

     

    Even after yesterday's presentation, Adam, The Troll, keeps insisting SPPI doesn't answer the questions he raise....

     

    Here is the answer:

     

    "In spite of a growing revenue, there are some people who don't get our story.

     

    They keep talking about Spectrum is going to go downhill, that Spectrum is doing deep discounts to doctors.

     

    These are all bullshit stories.

     

    My friends, there are people who are misleading investors.
    They are people who have bad intentions.
    They are people who have no interest in patients or investors or in our employees.

     

    Do not listen to those stories, friends."

     

    - Rajesh C. Shrotriya, MD
    Chairman, Chief Executive Officer and President of Spectrum Pharmaceuticals, on 30 Aug 2012

     

    So... Adam, the Troll, has spread wrong info about the sales... and after the earnings he attacked the company for not meeting his false expectations. What a despicable person.

     

    Question: why isn't this guy in jail, where he belongs?
    31 Aug 2012, 05:12 AM Reply Like
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