After Tuesday's close, Spectrum warned that sales of colon cancer drug Fusilev will be $10-15 million in the first quarter and $80-90 million for all of 2013.
Spectrum shares are down 37% to $7.88 in after-hours trading, after closing at $12.43 during the regular session.
Just how colossally awful is this new revenue guidance? Fusilev sales were $44.6 million and $204 million in the fourth quarter and full year 2012, respectively. Just under one month ago, Spectrum CEO Raj Shrotriya promised investors more revenue growth in 2013. Tuesday, he admits first-quarter Fusilev sales will drop more than 70% sequentially. For 2013, Fusilev sales will retrench by a jaw-dropping 60%.Fusilev is Spectrum's biggest and most important drug, so its demise can't be made up elsewhere. Total revenue for 2013 is now expected to be in the range of $160-$180 million compared to $268 million in 2012. Analysts, on average, were expected Spectrum to bring home $297 million in revenue this year. Spectrum goes KABOOM! but it's not like the stock's most ardent bulls weren't warned -- repeatedly. -- Reported by Adam Feuerstein in Boston. Follow @AdamFeuerstein
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV