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Shares of Spectrum Pharmaceuticals (SPPI -0.7%) slip after Credit Suisse initiated the shares...

Shares of Spectrum Pharmaceuticals (SPPI -0.7%) slip after Credit Suisse initiated the shares with a tepid Neutral rating ealier this morning. The firm says its concerned about the impact of increased competition from Leucovorin, which is a generic SPPI's Fusilev. Sales of Fusilev may decrease from 2012 highs and limit near-term stock performance, and Credit Suisse feels it's more prudent to take a wait-and-see approach and look to buy SPPI once there's greater visibility.
Comments (6)
  • Nahodny Okoloiduci
    , contributor
    Comments (144) | Send Message
     
    I thought this old false proven short agenda repeated ad nauseam over and over (and it never worked actually) is over and done. Now Credit Suisse springs this out :)
    Wait and see approach... yeah right. I see them raising their ratings and price targets furiously AFTER sppi hits 20 dollars mark.
    15 Jan 2013, 03:28 PM Reply Like
  • Factzplz
    , contributor
    Comments (228) | Send Message
     
    Amazing! Generic Leucovorin has been around for 50 years and there are 12 manufacturers.

     

    Fusilev has been around three years, newly approved, and has gotten 31% market share.

     

    So how does "increased competition from Leucovorin" even enter the discussion. The focus should be how many of the 12 generic makers will cease production. How many ways can you split a shrinking pie -- and my guess is 1/12th is too little to maintain profits.

     

    Given the reduced dosage, less side effects, and better efficacy, if you, your spouse, or child needed "the drug", which would YOU ask for, Leucovorin or Fusilev?

     

    With the new hires away from Amgen, Keller and Turgeaon, their experience, contacts, and focus should bring a new dimension in sales. Plus the doubling of the sales staff now allows coverage to all related physicians.

     

    Take out cash (as they quote with AAPL) then SPPI is trading at a 4 PE.

     

    SPPI, based on comparable metrics to other equally as profitable and growth oriented biotechs, should be $30.
    15 Jan 2013, 03:37 PM Reply Like
  • Jonha's Pop
    , contributor
    Comments (67) | Send Message
     
    Factzplz,
    Your well written note and your well thought out comments should be sent directly to Credit Suisse for a reply. I for one would like to hear their response.
    Don
    15 Jan 2013, 05:21 PM Reply Like
  • BillGerman
    , contributor
    Comments (4) | Send Message
     
    more intriguing, is the strange after hours SPPI heavy volume for the last five days? What's that all about?
    15 Jan 2013, 05:45 PM Reply Like
  • Retail Investor
    , contributor
    Comments (448) | Send Message
     
    - Spectrum could result in MASSIVE SHORT SQUEEZE if longs are right -> http://stks.co/nIhk
    15 Jan 2013, 06:48 PM Reply Like
  • mitrado
    , contributor
    Comments (1959) | Send Message
     
    A Downgrade based on a well-known lie!?
    90% of the world's stock analysts should be in jail. It's like they are all in a race to win the Most Incompetent Stock Analyst Ever. What are they good for? They only create noise.
    16 Jan 2013, 04:21 AM Reply Like
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