Spectrum Pharmaceutecals Inc (SPPI)

[antihama]

Posted this on a new SA article yesterday titled Spectrum Pharmaceuticals: Buy The Dip by Jonathan Faison. Why lose a post in the ether.

It’s great to see the news getting out regarding Spectrum’s potential. We got recent SA articles from Dr. Tran, Decision Analytics, and now you. Sure, longs know that we can have another really good year in 2018 if the expected news on poziotinib and Rolontis is positive, and maybe a super duper year like this year if you combine it with a licensing agreement and perhaps some positive news from CASI on the China front of which Spectrum owns 20% (It’s a little above 17% currently but Spectrum can buy shares at par value $.01 to get back up to 20% till Sept 2019). But the biggest takeaway I got from your article is the ‘Dr. Raj effect’ had on the wariness of potential investors to buy shares when you state

“I look favorably on the departure of their CEO and look forward to additional strengthening of the executive line-up.”

“but having been negatively biased against the company (in part due to less than stellar leadership from CEO Rajesh Shrotriya) I never gave it a second look”

Dr. Raj really impacted Spectrum negatively with misleading, or at best, not being completely forthcoming about the Fusilev and apaziquone downdrafts, and his optimistic but misleading views on sales and trials. That left a bad taste with everybody, longs included. SA authors that used to write positive articles on Spectrum such as Smith on Stocks, Brian Nichols, and others didn’t want anything to do with Spectrum after the Fusilev crash in sales. By the time the apaziquone NDA rejection occurred in 2016, there wasn’t anything positive being written via SA articles and such so in that sense it didn’t matter (of course it mattered that the share price took another hit back then) (ps newbies please note a new registrational apaziquone P3 trial is being conducted under a new Special Protocol Assessment agreement with the FDA that incorporates feedback from the FDA and learnings from earlier studies but that’s ~2 years away before we start hearing about that). So it really means something when we see authors like yourself providing some positives on Spectrum. It’s been a long time since we saw that.
25 Dec 2017, 03:51 PM