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Spectrum Pharmaceuticals - A solid speculative play

Spectrum Pharmaceuticals is a sold up and coming bio-pharmaceutical company. Traders have recently profited on the Zevalin play. The question before us is what we can expect from a Fusilev approval? The stock price is stuck at just above $7.00 with the recent offering. Should we get in? Should we increase our position?  Should we get out? 
I believe the stock is in play again. It’s undervalued. Despite some opinions which call for a price of $20-$30, it look like even the average investor is coming to the conclusion that a Fusilev approval would result in a $9-$11 price tag. There’s a good reason for this. During the leucovorin shortage which occurred at the end of 2008, Fusilev cornered the market. Spectrum charged $50 for a course of Fusilev. Leucovorin costs 50 cents. Leucovorin is the generic version of Fusilev. Even with the approval for the expanded market for colorectal cancer, the price of Fusilev will limit the market potential. The market is aware of this, and it is the very reason that Spectrum is not being rewarded for what looks to be an inevitable second approval this year.   Why is it inevitable you ask? It’s inevitable because the FDA called on Spectrum during the shortage. The FDA would not have done this if they did not have an emergency meeting to discuss the shortage and tacitly approve Fusilev. Still the price of the stock lags.
One cannot underestimate the cruel mistress known as the market. Somehow, someway, the market knows the true potential of a company. Oh, yes, sometimes the market is wrong and a surprise occurs such as the recent case of Dendreon, but usually the market is right. Be that as it may, I still think that Spectrum goes to $9-$11 on Fusilev approval. That makes today’s $7 price tag a great buy. Following approval, SPPI investors will have EOquin news to look forward to. That may be the real catalyst for this solid organization, and result in the big payoff for investors. On EOquin approval, a $20 price tag sounds very reasonable.