This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Spectrum's Fusilev Problems Not Letting Up

HENDERSON, Nev. ( TheStreet) -- Spectrum Pharmaceuticals (SPPI - Get Report) hasn't seen the end of Fusilev sales declines, meaning the company's already-lowered guidance for 2013 might still be too high, says Credit Suisse analyst Jason Kantor.

Kantor cut his Spectrum rating to underperform from neutral and slashed his 2013 Fusilev sales projection to $65 million from $77 million on Monday due to prescription sales data showing slack demand for the colon cancer drug.

Spectrum shares are already down 31 percent this year because the company cut its 2013 Fusilev sales guidance to $80-90 million, blaming over-stuffed wholesaler inventory and falling demand from hospitals. Fusilev sales totaled $204 million in 2012.

The official line from Spectrum is that inventory levels and end-user demand for Fusilev should start to recover in the second half of the year. But Credit Suisse's Kantor says currently available prescription data doesn't give any reason for optimism.

Fusilev sales continue to fall:

The blue line in the chart tracks average daily sales of Fusilev over time, according to Wolters Kluwer (now known as Symphony Health.) Based on these data, monthly sales numbers also reported by Symphony Health and projections for June, Kantor believes Fusilev sales for the second quarter may fall 16% compared to reported first quarter sales of $11.8 million.

If that occurs, Spectrum will be hard-pressed to meet its already-lowered 2013 sales forecast, warns Kantor.

Spectrum has been trying to convince investors that pipeline drugs such as belinostat are a new source of growth for the company. That's true to some extent, but Fusilev still makes up the bulk of the company's revenue and dwindling profits.

Last week, I reported Spectrum has the second-highest short interest of any bio-pharma company. The continued problems with Fusilev explain why.

Spectrum shares are down 7.5% to $7.41 in early Monday trading.

-- Reported by Adam Feuerstein in Boston.

Adam Feuerstein writes regularly for TheStreet. In keeping with company editorial policy, he doesn't own or short individual stocks, although he owns stock in TheStreet. He also doesn't invest in hedge funds or other private investment partnerships. Feuerstein appreciates your feedback; click here to send him an email.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
SPPI $7.30 2.89%
AAPL $93.64 -0.11%
FB $118.57 0.84%
GOOG $698.21 0.75%
TSLA $241.80 0.43%


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs