Spectrum reports record EPS after boosting Fusilev sales
This article was originally published in Scrip
Spectrum Pharmaceuticals had $46.5 million in first quarter 2012 net income and record-breaking earnings per share of $0.71 – both three times the $12.8 million in net income and $0.23 in earnings per share reported for first quarter 2011 – based on $51 million in sales of its metastatic colorectal cancer drug Fusilev (levolecovorin) and operational efficiency.
Spectrum is benefitting from shortages of generic leucovorin and recently announced plans to increase manufacturing of Fusilev to keep up with demand (scripintelligence.com, 24 April 2012). The Henderson, Nevada-based company said in its first quarter earnings release on 26 April that it is focused on maintaining profitability as it completes two recent acquisitions and promotes its two commercial products.
"Our earnings were driven by strong pull-through of Fusilev and a judicious management of our operating expenses. I am proud that, while we are preparing to integrate two key acquisitions, we continue to be focused on growing our core business profitably. Fiscal discipline will remain a core part of our strategy, which we believe will continue to serve our shareholders well in the future,” said Spectrum chairman, president and CEO Dr Rajesh C. Shrotriya.
Investors still sent the company's stock price mildly lower to $10.52 per share on 26 April, down 5.7% from the previous day's closing price. The company increased its cash and investments stockpile to $149.4 million as of 31 March 2012 versus $121.2 million a year earlier. Adding to Spectrum's cash balance was $59.9 million in revenue for first quarter 2012, including $56.8 million in product sales and $3.1 million from licensing fees, representing a 37% increase from $43.6 million in first quarter 2011 revenue, including $40.5 million in sales. First quarter 2012 Fusilev sales were $16 million higher than the $35 million in sales reported in 2011. The company expects its acquisition of Allos Therapeutics for $206 million – announced on the same day that Spectrum said the bladder cancer drug candidate apaziquone didn't meet the endpoints in two Phase III trials – to be accretive to earnings in the fourth quarter of 2012. Allos reported $35 million in 2010 sales and $50 million in 2011 sales for Folotyn, an approved treatment for relapsed or refractory peripheral T-cell lymphoma (scripintelligence.com, 6 April 2012). Spectrum also paid $24.9 million in the first quarter to buy the licensing rights from Bayer Healthcare to market Zevalin outside of the US (scripintelligence.com, 26 January 2012).