Feuerstein's Biotech-Stock Mailbag

This is not meant to write off Millennium altogether, just to say that it's a biotech company -- and a high-profile one at that -- which has not lived up to its potential. Maybe there is something in the R&D pipeline that will change Wall Street's perception of the company. At this point, however, Millennium has to deliver before investors start to believe.

That's clear by looking at Millennium's current stock price of around $10 per share, lower than it was when I wrote that old column two-and-a-half years ago.

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Back to the subject of prostate cancer drugs, Ali M. writes to ask whether Spectrum Pharmaceuticals (SPPI Quote) stands to benefit if or when the FDA approves the prostate cancer drug Satraplatin.

The quick answer is yes.

There are two other primary stocks tied to Satraplatin. The drug will be marketed in the U.S. by GPC Biotech (GPCB Quote). European rights are controlled by Pharmion (PHRM Quote), which licensed it from GPC. As for Spectrum, it licensed the drug to GPC originally, so it will receive a low-double-digit royalty on global sales (as well as cash milestone payments).

I wrote about Spectrum in the April 7 Mailbag, so check that out. What I said then was that at $6-$7 per share, I felt like the stock was essentially pricing in the company's Satraplatin opportunity. That doesn't mean, however, that Spectrum won't see a bump if or when Satraplatin is approved.