Seeking Alpha

Spectrum Pharmaceuticals (SPPI) guides FY13 revenue below Street estimates, now anticipating...

Spectrum Pharmaceuticals (SPPI) guides FY13 revenue below Street estimates, now anticipating total revenues in the range of $160M to $180M. Analysts were projecting FY13 revenue to come in at $297M. The company cites a change in ordering patterns of Fusilev and an increase in generic competition in its hospital segment for the shortfall, following the recent stabilization of the folate analog market. Shares remain halted AH.
Comments (14)
  • jjjorgen
    , contributor
    Comments (321) | Send Message
     
    Feurestein will have a hay day with this!
    12 Mar 2013, 04:49 PM Reply Like
  • pagreen1966
    , contributor
    Comments (601) | Send Message
     
    The shorts have won!
    12 Mar 2013, 05:16 PM Reply Like
  • Cynicoren
    , contributor
    Comments (21) | Send Message
     
    At least that's behind us.
    12 Mar 2013, 05:19 PM Reply Like
  • pagreen1966
    , contributor
    Comments (601) | Send Message
     
    Currently down 36% in AH!
    12 Mar 2013, 05:20 PM Reply Like
  • DANDISIK
    , contributor
    Comments (64) | Send Message
     
    Wow, a potential bloodbath. Does anyone see this as a Buying opportunity ?
    12 Mar 2013, 05:26 PM Reply Like
  • jjjorgen
    , contributor
    Comments (321) | Send Message
     
    No. Not unless this drops to $5/share, and other drugs in their pipeline begin to produce.
    12 Mar 2013, 09:36 PM Reply Like
  • vireoman
    , contributor
    Comments (1008) | Send Message
     
    So, on the earnings call, management says that demand for Fusilev is "very, very, very stable." They say the decrease in Q4 revenue for Fusilev was "mostly attributable" to an increase in government-mandated rebates. 2012 sales of Fusilev were $204.3M. Now, less than three weeks after the earnings call, they guide Fusilev revenue of $80-90M for all of 2013 and talk of hospital sales shifting to generics.

     

    I now have a better understanding of the reason for class-action lawsuits. Phukkers!
    12 Mar 2013, 08:32 PM Reply Like
  • mitrado
    , contributor
    Comments (2005) | Send Message
     
    I've been defending this stock but I this is inexcusable. Raj lied to every investor and I hope he quits Spectrum as soon as possible. Looks like Adam Feuerstein will be getting his money back after all, as he's been waiting for this day for nearly 2 years now...
    13 Mar 2013, 04:45 AM Reply Like
  • User 7857801
    , contributor
    Comments (3) | Send Message
     
    Hmmm? The board approved a $100M stock buyback last August. Only 1.1M shares had been purchased at yearend. Looks like 20% of the float can be taken off the table now, twice as much as could have been yesterday.
    13 Mar 2013, 02:22 AM Reply Like
  • jersONEr
    , contributor
    Comments (20) | Send Message
     
    Wow. bloodbath to say the least! im curious DANDISIK as this may present a great buying opp as well... let's see where dust settles and how it might trade tomorrow?
    13 Mar 2013, 06:13 AM Reply Like
  • User 7857801
    , contributor
    Comments (3) | Send Message
     
    Hmmm? It is interesting that on August 10, 2012, the board authorized to buy back up to $100M of the stock through August 1, 2013, and had only purchased a little over 1M shares so far
    13 Mar 2013, 06:34 AM Reply Like
  • User 7857801
    , contributor
    Comments (3) | Send Message
     
    Some interesting numbers to consider: 60M outstanding shares; 44M shares owned by institutions; I've read anywhere from 33 - 55% of the stock is shorted; as of yearend, company can still buyback $80M+ shares. This seems to be an opportune time for the shorts to cover, which will in itself generate demand on the stock. If the company is looking to support its stock and buy low at this point, too, the "bloodbath" may not end up being as bad as the after hours market shows, considering the news. There is a lot of potential demand for the stock. Should be an interesting day.
    13 Mar 2013, 08:18 AM Reply Like
  • mitrado
    , contributor
    Comments (2005) | Send Message
     
    After this, I only see $SPPI trading above $12 four or five years from now, with luck. Shorts are still not covering. Adam F, like most shorts, have bet against $SPPI when the stock was trading around $8. They are still not happy.
    13 Mar 2013, 09:24 AM Reply Like
  • Nahodny Okoloiduci
    , contributor
    Comments (147) | Send Message
     
    SPPI have some catalysts ahead, Apaziqone, Belinostat, development of Renazorb and plenty other candidates... so even if weaker revenue will materialize, the big part of short thesis is already off.
    13 Mar 2013, 09:37 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector