Spectrum Pharmaceuticals, Inc. (NASDAQ:SPPI)

ASCO 2013 gives upside potential !

Overreaction by the market. They have low PE, two other approved drugs and if there's a shortage of generic drug sales and the price will rebound.

I have held NBIX for about 5 years and am just now in the black after having been deeply in the red the entire time. What's the message? GO LONG IN A BUNCH MORE SPECULATIVE BIOTECH STOCKS.

big IHS tos

The company has a strong pipeline of drugs, keeps getting approvals from the FDA, and has been building strong networks with physicians (prevents generics from taking back that much market share). Also, it has been said that Spectrum has only tapped roughly 50% of the possible physicians to date.

This company is gold

What ZZ said in his recent bullish statement. Bounce should happen. No rel skin in it.

OK, I'll admit there's definitely some speculation on this. The income of the company comes almost 82% in 2011 from one Drug Fusilev, which skyrocketed its use in the US because the generic drug shortage (actually, the generic drug IS NOT the same drug as Fusilev). The drug is used to treat la stage colorectal cancer. it has 50% (not a typo) short interest. Everybody thinks as soon as the shortage of the generic drug is over, then oncologists will go back to using the generic drug and hence the sales and income of the company will plummet. There is ONE major problem with those people who are shorting the stock... they do not know that, even though it has been a couple of years now that the shortage is in effect, the fact is that drugs are sold and bought by the oncologists (unlike many other drugs) and the oncologists get reimbursed by the government (medicaid/medicare) for 6% of the cost of the whole sale price. So, if the drug costs $1000, then the oncologists get $1060 back. In other words, there's no incentive in buying the $32 generic drug as opposed to buying the $1200 drug. Not to mention that insurance companies do pay most of the cost of the drug (and the oncologist buy it for a lot less than wholesale price) The company does have other drugs in the pipeline which are being reviewed by the FDA. Also, the stats are good, and the price is off its highs. The other thing is that TEVA, the company that produces the generic version, has been allowed by the FDA to import the injectable version of the drug from Europe... a year ago, and it has not even made a dent on the Fusilev brand name drug. Unless the goverment and insurance starts paying a lot less for these costs, the oncologists will keep on buying and selling the much more expensive drug (and historically, this has happened also with other drugs bought and sold by oncologists). Because sales are probably going to keep increasing from the shortage (and likely, TEVA has no incentive either to produce it if it knows it won't make money on it) and there's bound to be short squeeze, I think in the short term 1 or 2 yrs, the stock will go much much higher. Also, it's possible that TEVA, which is a much larger company, might buy out SPPI. Question is, is 6%, a merily $66, worth for the oncologists?- Actually, the oncologist buy the product for a lot cheaper so they get a lot more than 6%, usually between 20% and 40%, historically oncologists have done this with other medicine. But, it seems like 8 months after Fusilev was approved by the FDA, the shortage started, which means the shortage was a result of good marketing on the new drug and the oncologists wanting to make a lot more money. This also seems to justify the speculative possibility of TEVA buying SPPI

will run back to 17-18 range again

Generic not catching on.

CEO has a clue

it's highly unlikely that a cancer patient will switch to the generic alternative. This has to be the most undervalued stock I've seen in a long time.

Kevin Tang

Chart Play

With two profitable drugs increasing sales each quarter and three more attractive drugs expected to reach approval this year, SPPI is one of the most attractive biotech stocks out there. Profits should rise each quarter as well as stock price, and the stock is a good acquisition candidate.

Eoquin first and foremost is going to bring in $500M a year starting in 2013.

On top of that you have F and Z picking up significant steam and B, which looks to have positive results from it's trial.

Not to mention many other drugs in the pipeline.

Zevalin is the key

2 profitable FDA approved drugs already. 2 pipeline drugs set for approval by 2013. 4 more in the pipeline behind them. Plus one of the best CEO's in the industry.

Results consistently above expectations and great positioning in the market. Pop above previous high for technical pattern caught major market attention.