Spectrum Pharmaceuticals Inc. (SPPI) - Get Report popped Thursday after the company announced that it was selling its marketed portfolio of seven Food and Drug Administration-approved products to Acrotech Biopharma for $160 million up front, with a potential for another $140 million in regulatory and sales-based milestones.
The company will reduce its staff size by about 40% as a result of the deal, with the impacted staff transitioning over to Acrotech.
"This divestiture marks a major strategic shift for Spectrum to ensure laser-focus on novel, oncology drug development and commercialization," said Joe Turgeon, president and CEO of Spectrum Pharmaceuticals. "The proceeds generated by the sale will significantly strengthen the financial position of the company, providing the capital to develop and commercialize our two late-stage pipeline assets, and placing us in a solid position to evaluate additional growth opportunities."
The products that are being sold generated combined sales of $76.4 million during the first three quarters of 2018.
Both of the companies' boards already have approved the transaction, which is subject to regulatory approvals and is expected to close within 90 days.
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