Spectrum Pharmaceutecals Inc (SPPI)

[antihama]

Spectrum will run out of money in ~7 quarters. They had $224M at the end of the year. Lets assume CASI now is only worth around half of what it was at the end of the 4th Q so lets call it 210M in cash and marketable securities. They used up 28M in the 4th Q so lets call it ~30M/Q of cash being used going forward so that leaves 7 qtrs of cash. Traditionally, in the past, Spectrum would seek financing when they get down to 100M in cash which is in the 4th Q and I have to assume after the Rolontis PDUFA date of Oct 24th. Maybe they wait till mid 2021 to seek financing if Rolontis is bringing in cash/delaying the need for financing and perhaps generates excitement in the investment community. And they'll have an inkling if Z20s cohort 3 will be successful. That data will probably come out at the end of Dec and if they think it will be successful (which I think they'll know from my last post) definitely wait till 2021 to raise cash.