Spectrum Pharmaceutecals Inc (SPPI)

[antihama]

"Behind The Idea: Spectrum Pharma-Great Asset" SA article released to the paying crowd last week out today for general viewing. Here are the summary bullets from the article

Summary
Early ORR results in NSCLC with exon 20 mutation for lead candidate poziotinib pushed the stock over $20.00/share in 2018.

The stock has since come down to the $8.00/share range due to a decline in the ORR to 40% levels.

However, this is still twice as good as current therapies that do not specifically target exon 20 mutations.

We think the sell-off has been excessive, and the very strong balance sheet and upcoming major data readout during 4Q19 make this a strong buy.

Our price target is $17.08/share, representing 114% upside over the current price.

It's a Q&A session between Seeking Alpha and ELLE Investments. Qs asked from Seeking Alpha were
- Can you briefly summarize your bullish thesis for readers who may not have seen it yet?

- One of the key points you make is that investors are overreacting to the lower response rates - can you discuss why this is less of a risk and how investors should look at the response rates?

- When evaluating biotechs, what does an ideal - and not so ideal - balance sheet and funding structure look like?
and
-Is a takeover a viable exit for SPPI? If so, who are the natural acquirers and why?

It's an article worth reading. While I disagree w them that they are thinking ORR will come in at ~40% (I'm thinking 50%ish), I was surprised by their "minimum durability of 1yr+" estimate (I was thinking 9ish months). Thinking about it, it makes sense since in the Zenith20 trial a patient will undergo dose reduction if the patient is having difficulty w a higher dose thereby keeping the patient on drug longer. Again, definitely worth a read and saving since this article will revert back to being viewed by paying customers only within a short time.

PS What I really enjoyed about Elle's bullish thesis is that the whole discussion was about pozi, zero discussion on Rolontis. Pozi will be the one putting this ship into warp drive. Nothing like addressing an unmet medical need. Rolontis will be the icing on the cake.