This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Spectrum's Fusilev Problems Not Letting Up

Stocks in this article: SPPI

HENDERSON, Nev. ( TheStreet) -- Spectrum Pharmaceuticals (SPPI) 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.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,600.25 +243.38 1.40%
S&P 500 2,041.01 +28.12 1.40%
NASDAQ 4,713.1480 +68.8360 1.48%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs