Back to the subject of prostate cancer drugs, Ali M. writes to ask whether Spectrum Pharmaceuticals ( SPPI) stands to benefit if or when the FDA approves the prostate cancer drug Satraplatin. The quick answer is yes. There are two other primary stocks tied to Satraplatin. The drug will be marketed in the U.S. by GPC Biotech ( GPCB). European rights are controlled by Pharmion ( PHRM), which licensed it from GPC. As for Spectrum, it licensed the drug to GPC originally, so it will receive a low-double-digit royalty on global sales (as well as cash milestone payments). I wrote about Spectrum in the April 7 Mailbag, so check that out. What I said then was that at $6-$7 per share, I felt like the stock was essentially pricing in the company's Satraplatin opportunity. That doesn't mean, however, that Spectrum won't see a bump if or when Satraplatin is approved.
Uh-oh, another Dendreon ( DNDN) question, this one from Maxim J. "Have you heard anything about Dendreon increasing the size of their IMPACT study to 600 patients?" Yes, I heard the same unconfirmed chatter, loudest around the time of the company's recent debt offering. I'm actually surprised it hasn't happened yet. Dendreon raised the cash it needs to survive in the short run, so why not add more patients to the IMPACT trial? As most of you know, this phase III study -- still enrolling patients -- will determine whether or not Provenge is approved.