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|
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.