Spectrum Pharmaceutecals Inc (SPPI)

[antihama]

The 3rd Q CC was well received and why shouldn’t it be since

-They have 9 qtrs before the money runs out so we won’t have to worry about dilution for another year since they traditionally look for funds when their cash goes down to ~100M which is in 5 qtrs.
Rolontis BLA was submitted w approval by the FDA expected next October which makes my 1st bullet a little bit more interesting. Say they feel that Rolontis will make a $100M in 2021 w ~80% of that as gross profit margin and, I dunno, 60 % after taxes (I wonder if they have tax loss carry forwards?), etc. If they felt confident that Rolontis is a money maker they just might forget about a financing in a year or so.

-Pozi news we heard. While it was nice to hear that the pozi basket trial finally started and that we’ll get Zenith20 cohort 1 TLD in December (Ah, it warms one’s heart), I know most longs, especially long-time longs, are asking, “Geez, what’s taking you so long“. The beginning of Dec will make it 11 months since the last patient was enrolled, and many longs are asking “Come on guys, shouldn’t you have been auditing the data/ scans concurrently, and have all the data/analysis at your fingertips by now? December?, really, we remember what you said about Rolontis; the Rolontis filing was 1st anticipated in “2017, then 2018, then 2nd half 2018, then 4th Q 2018 and they filed ~ the last week of 2018”. Long-time longs shudder at this “December TLD” timeline. Hopefully they release data in the 1st week of Dec.

-Varun Kumar of Cantor Fitzgerald filling in for Alethia Young. Damn, those were stupid Qs Varun. If you are going to ask basic, any long could answer, Qs why bother asking them. In Varun’s defense, Alethia should have coached Varun on what Qs to ask. That was a wasted opportunity.

-Did Guggenheim Analyst Michael Schmidt make up for Varun’s stupid Qs? I get the sense that an interim analysis, is built into cohort 3 and 4s trial.

Michael Schmidt -- Guggenheim -- Analyst
And then a question regarding front-line patient populations. I know the cohort 3 and 4 are still enrolling. But I guess, assuming or should you meet the primary endpoint or the endpoint in cohort 1? I suppose, how do you think about accessing the first line of market longer term. I guess, what type of trial designs might be adequate to get to front-line exon 20 patients?
Francois Lebel -- Chief Medical Officer
Yeah. I think that's an excellent question. Obviously, we're going to seek guidance there. It's going to depend obviously on the results that we got to get in cohort 1 and we are a little very much engaged. The FDA, they try to understand what their expectation is, and it has changed from original, but obviously if it's highly positive result, then we would have to discuss with the FDA for ethical reasons. We need to have a look at the data sooner. But right now we can't, we have to see the data first.

So if 1st line trtmt is having a significant effect perhaps we'll hear of news earlier. Thinking 1st-line made me think of a recent article I read touting the benefits of getting osimertinib as initial therapy instead of 2nd.

Targeted Therapy: 'Best' Drug First
Patients with EGFR-positive NSCLC lived almost 7 months longer if they received the second-generation EGFR inhibitor osimertinib (Tagrisso) as initial therapy instead of an older EGFR inhibitor.

https://www.medpagetoday.com/hematologyoncology/lungcancer/83163?utm_source=Sailthru&utm_medium=email&utm_campaign=Weekly%20Review%202019-11-10&utm_term=NL_DHE_Weekly_Active

Some ramblings here but I kind of answered your Q... I think