HENDERSON, Nev. (
(SPPI - Get Report)
can't blame short sellers
for the mother of all revenue-guidance walk backs announced Tuesday night.
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
-- Reported by Adam Feuerstein in Boston.